Lottery Licensing

What is a Lottery?

In simple terms, a lottery scheme may be defined as any scheme which has the following three components:

• a prize
• a chance (to win the prize)
• consideration or a fee

Therefore, a lottery scheme exists if money is paid or some other consideration is given for a chance to win a prize.

Administration of Lotteries

All authority to licence gaming activity flows from the provisions in the Criminal Code (Canada). The Criminal Code provides an exemption from the general prohibition against gambling, allowing eligible charities and religious organizations to conduct and manage lottery schemes under the authority of a licence by the appropriate authority.

Lotteries are administered through two levels of government:

• The Alcohol and Gaming Commission of Ontario (AGCO)
• Municipalities

The Registrar of the AGCO has been delegated authority so that it can license all types of approval lottery events, while municipalities may approve and license certain lottery events.

The Municipal Council

Municipal Councils have the authority to issue licenses for most lottery events conducted in their communities, including:

• Bingo events with prize boards of up to $5,500
• Raffles with prizes of up to $50,000
• Break Open Ticket events that are not conducted in conjunction with another licensed gaming event, and where the tickets are sold within the municipality
• 50/50 draws
• Bazaar gaming events
• Media Bingo

Since raising funds through gaming contains a certain element of risk on the part of the charitable organization, lotteries should be viewed as a supplement or alternative to the organization's other fundraising ventures.

Obtaining a Lottery License

Licenses can only be issued to eligible charitable or non-profit charitable organizations as defined under the AGCO’s Lottery Licensing Policies.

Various lottery licence application forms are available. Expand the menu by clicking Clerks/Council, then lottery licensing. 

What is Considered a Charitable or Non-Profit Charitable Organization?

In order to qualify for a lottery license, an "eligible" organization must demonstrate that it exists to provide services in one of these charitable classifications:

a)    The relief of poverty;

b)    The advancement of education;

c)    The advancement of religion;

d)    Other charitable purposes beneficial to the community, not falling under a), b), or c).

Proceeds from lotteries must be used for charitable or religious objects or purpose in the province of Ontario.

Eligibility

In order to be eligible your organization must:

• have been in existence for at least one year;
• have provided charitable community services consistent with the primary objects and purposes of the organization for at least one year;
• have a place of business in Ontario; demonstrate that it is established to provide charitable services in Ontario;
• propose to use proceeds for charitable purposes or objects that benefit Ontario and its residents; and
• assume full responsibility for the conduct and management of its lottery events.

When an organization first applies for any type of lottery license, an eligibility review is required and it must provide all of the following information and documents that apply to it:

• A copy of its letters patent;
• A copy of its constitution and by-laws;
• A copy of its budget for the current year;
• A copy of its financial statements for the preceding year;
• A list of its Board of Directors

The terms and conditions for each lottery license set specific application requirements, which are summarized in the 

Cost

Cost of a lottery license is 3% of the total prize value. Who Can I Contact for More Information? Questions relating to Lottery Licensing can be directed to the Clerk’s Department.