Charity Lottery Regulations by Province

W5 Published Friday, November 15, 2013 5:34PM EST Last Updated Friday, November 15, 2013 5:43PM EST

Canada AM: The truth about charity lotteries

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Some provinces have limits on the amount charities can spend on running a lottery, but in others, the sky is the limit. Where expense limits do exist, they are not standardized between provinces. Charity lotteries are provincially regulated and charities must apply and be approved for a license before operating a lottery. More information on the specific regulations in each province can be found below.

Alberta

Regulatory body: Alberta Gaming and Liquor Commission

- Lottery expenses cannot exceed 30% of the gross revenue.

- External lottery management provider fees cannot exceed 5% of the gross revenue.

- There are no formal regulations or penalties if a charity lottery operates at a loss.

Source: Alberta Gaming and Liquor Commission

For more information: http://aglc.ca/pdf/handbooks/raffle_over_10000_terms_and_conditions.pdf

British Columbia

Regulatory body: Gaming Policy and Enforcement Branch

- Lotteries grossing more than $250,000 have no limit on expenses and no limit on external lottery management provider fees.

- For lotteries grossing less than $250,000, expenses cannot exceed 25% and external lottery management provider fees are included in the 25% limit.

- If a charity operates two successive registered ticket raffles (grossing more than $250,000) that lose money, the branch will not issue a registered raffle licence to that licensee for a period of at least one year from the licence date of the second failed raffle. The ban will apply whether a licensee operates independently or with a partner.

Source: Gaming Policy and Enforcement Branch

For more information: http://www.gaming.gov.bc.ca/licences/docs/guide-a-b-licence.pdf

Manitoba

Regulatory body: Manitoba Gaming Control Commission

- Lottery expenses cannot exceed 20% of the gross revenue and external lottery management provider fees are included in the 20% limit.

- There are no formal regulations or penalties if a charity lottery operates at a loss. The MGCC will work with the charity when they re-apply for a license to ensure they understand the market.

Source: Manitoba Gaming Control Commission

For more information: http://mgcc.mb.ca/forms/t_rf_new.pdf

New Brunswick

Regulatory body: Gaming Control Branch

- A minimum of 15% of gross proceeds from licensed gaming must be used for the objectives indicated at the time of licence application. After a charity has purchased the lottery prizes, at least 50% of the remaining revenue should go to the charity.

- There is no explicit limit on how much gross revenue can go toward external lottery management provider fees. The Department of Public Safety would look at the contract between the third party operator and the charity and may make recommendations if it is felt that the minimums may not be attained.

- There are no formal regulations or penalties if a charity were to operate at a loss. The Department of Public Safety would review the case and use those findings to make decisions on future licences.

Source: New Brunswick Department of Public Safety

For more information: http://app.infoaa.7700.gnb.ca/gnb/Pub/EServices/ListServiceDetails.asp?ServiceID1=544&ReportType1=ALL

Newfoundland and Labrador

Regulatory body: Service NL

- After a charity has purchased the lottery prizes, at least 50% of the remaining revenue should go directly to the charitable programs. Likewise, no more than 50% of revenue after prize costs can go toward expenses.

- External lottery management providers can be paid a maximum of 20% of gross revenue.

- There are no formal regulations or penalties if a charity lottery operates at a loss. Service NL will work with them to structure a new lottery that will prevent a loss when the charity reapplies for a license.

Source: Service NL

For more information: http://www.servicenl.gov.nl.ca/lotteries/#q3

Nova Scotia

Regulatory body: Alcohol and Gaming Division

- There is no explicit limit on how much gross revenue can go toward lottery expenses.

- Third party management company fees cannot exceed 15% of net revenue. Net revenue is defined as gross revenue, minus the cost of prizes.

- There are no formal regulations or penalties if a charity operates at a loss. If a charity lottery is in jeopardy of losing money, it can extend the deadline to sell more tickets or cancel the lottery.

Source: Alcohol and Gaming Division

For more information:http://www.novascotia.ca/just/regulations/regs/gcticket.htm

Ontario

Regulatory body: Alcohol and Gaming Commission of Ontario

- There is no explicit limit on how much gross revenue can go toward lottery expenses.

- There is no explicit limit on how much gross revenue can toward external lottery management provider fees.

- There are no formal regulations or penalties if a charity lottery operates at a loss. The AGCO will meet with the charity to discuss why the lottery wasn’t successful, and work with them to structure a new budget if the charity reapplies for a license.

Source: Alcohol and Gaming Commission of Ontario

For more information: http://www.agco.on.ca/en/whatwedo/licence_rafflelotteries.aspx