Lottery Licences

Who is eligible to conduct a lottery scheme?

Charitable and religious organizations may conduct a lottery to raise funds pursuant to a license being issued. Organizations must have a demonstrated charitable or religious mandate to qualify. The courts have determined that the term "charitable" refers to organizations which provide programs for:

1. the relief of poverty;
2. the advancement of education;
3. the advancement of religion;
4. other charitable purposes beneficial to the community

The following pre-requisites are mandatory to be considered eligible for a lottery license:

• organizations must have been in existence for at least one (1) year
• the organization must have a place of business in Ontario
• demonstrate that it is established to provide charitable services in Ontario and use proceeds for objects or purposes which benefit residents of Ontario

The primary purposes of an organization are determined by considering:

• the mandate of the organization as set out in its incorporation documents or documents stating the organizations objects
• the objects of the organization as described in its application for license
• the services which have actually been provided by the organization to the community

Municipalities license the following types of lottery schemes

• Bingo events
• Media Bingo Events
• Ticket raffles where the total prizes are $50,000 or less
• Break Open Ticket Lotteries (Nevada) not licensed by the Province
• Bazaars, Penny Auctions

Types of charitable and religious organizations

Types of organizations in the four categories of charitable mandate include those providing for:

1. The relief of poverty

Organizations providing assistance to:

• the sick and dying
• disabled persons
• the homeless
• victims of crime
• rehabilitating young offenders and parolees

Funds may be provided to individuals or families where the relief is a short-term or one-time payment intended to relieve an exceptional or unusual condition or circumstance. (e.g. helping a family whose house has burnt down.)

2. The advancement of education

To be eligible, an organization must provide public programs which:

• are geared to scholastic and vocational training for individuals and lead to a recognized diploma or certificate, or
• advance a recognized field of knowledge which leads to an accredited degree, diploma or certificate, and
• do not include professional development

Examples of organizations that could be eligible:

• elementary and secondary public and Roman Catholic separate schools
• accredited colleges and universities
• private schools registered with Revenue Canada as a charitable organization
• parent/teacher associations or other groups which are non-profit entities and which support one of the above types of institutions
• scholarship or bursary funds registered with Revenue Canada as a charitable organization

3. The advancement of religion

Religious organizations must demonstrate that programs and services assist in the delivery of religious services and programs to the community. A religious body is considered charitable when its activities serve religious purposes for the public good. Other activities that advance religion include:

• organizing and providing religious instruction, and performing pastoral and missionary work;
• establishing and maintaining buildings for worship and other religious use

4. Any purpose beneficial to the community

To qualify an organization must demonstrate that:

• it is operated on a not-for-profit basis, and its purposes include charitable or religious objects
• its services are offered to a significant portion of the public, and
• the proposed use of proceeds are consistent with its mandate

Eligible organizations include those with mandates in:

• culture and arts
• health and welfare
• physical education
• community support
• youth sports where majority of players are under 18
• service to the community (service clubs)

Organizations NOT charitable for lottery licensing purposes

Types of organizations which cannot be considered charitable include:

• social clubs
• professional associations, unions, employee groups
• elected representative groups including municipal, regional provincial and federal governments
• government ministries, agents or bodies
• political lobby groups
• political parties
• adult hobby groups
• private sports clubs (e.g. golf /curling)
• adult sports teams

How the application is evaluated before a license is issued:

• Does the organization qualify as a charitable or religious organization, e.g. relief of poverty, advancement of education?
• Is the organization established to provide charitable services in Ontario and will it use the proceeds to benefit Ontario residents?
• Does the organization restrict its mandate to any segment of the community?
• Does a significant portion of the community benefit by the charitable proceeds of the organization?
• Is the organization properly organized? Legally, financially, etc.
• Are there at least 3 persons who will assume full responsibility for the operation and conduct of the event?
• What will the proceeds be used for and is it consistent with the mandate of the organization?
• Are the organizations programs and services considered charitable?
• Does the organization have a place of business in Ontario?

Application for Lottery License Eligibility

If you have any questions related to Lottery Licensing, contact the Toqn of Marathon Lottery Licensing Official at 807-229-1340 or contact the Alcohol and Gaming Commission of Ontario:

Provincial Office
Alcohol and Gaming Commission of Ontario
Gaming Registration & Lotteries
90 Sheppard Ave E Suite 200
Toronto, On
M2N 0A4

Phone: (416) 326-8700

Toll Free 1-800-522-2876

Fax: (416) 326-8711

Web Site www.agco.on.ca

Charitable or Religious Organizations must establish Designated Lottery Trust Account(s) in accordance with the Lottery Terms and Conditions under which their Lottery Licences are issued to administer the proceeds and monies derived in the conduct of their various Lottery Events.

Lottery funds must be held in Trust by the charitable or religious organization. Lottery funds are public funds and, as such, accountability with respect to the receipt and use of these funds is required.

The Lottery Terms and Conditions established for the various types of lottery events contain a section entitled BANKING AND FINANCIAL. Charitable or Religious Organizations have the option of:

• opening and maintaining one (1) Designated Lottery Trust Account to administer the proceeds and monies derived from all their Lottery Events such as, bingos, break open tickets, raffles, bazaars, share of proceeds received from their Bingo Sponsors' Associations for various events conducted at a Bingo Hall during their regular bingo events (super jackpot, break open ticket sales, bingo-themed lottery schemes conducted and managed by the Ontario Lottery and Gaming Corporation (super star bingo), table board bingo, progressive bingo games);

Note: If this option is selected, charitable or religious organizations must maintain separate ledgers outlying financial details for each type of lottery event conducted by game and license, including proceeds derived from each, expenses paid in the conduct of each and a list of how proceeds have been disbursed; or

• opening and maintaining separate Designated Lottery Trust Accounts to administer the proceeds and monies derived from each type of lottery scheme that are conducted.

Note: If this option is selected, charitable or religious organizations must ensure that when they receive their share of proceeds from their Bingo Sponsors' Association for various events conducted at a Bingo Hall during their regular bingo events that these funds are deposited into their Designated Bingo Lottery Trust Account.

DESIGNATED LOTTERY TRUST ACCOUNT(S) MUST BE HELD IN THE NAME OF THE LICENSEE AND CONTAIN THE FOLLOWING FEATURES:

• Cheque writing privileges
• Monthly Statements issued
• All cheques returned with monthly statements
• A minimum of two (2) signing officers, must be bona fide members of the licensee signing all cheques

Note: Charitable or religious organizations are advised to have more than 2 bona fide members of the licensee with signing authority on this account as long as any two sign all cheques. In the case of absences of one (1) of more of the bona fide members of the licensee, the organization would still be able to access the lottery funds to pay for expenses for the charitable purposes approved on the license application.

• Deposit slips completed

Note: It is a requirement of the Lottery Terms and Conditions that monies must be deposited by deposit only into the Lottery Trust Account.

CASH WITHDRAWALS ARE NOT PERMITTED. CHEQUES CANNOT BE MADE PAYABLE TO CASH, EXCEPT WHEN A FLOAT FOR THE PURPOSES OF MAKING CHANGE IS REQUIRED FOR THE BINGO EVENT. THIS FLOAT MUST BE RE-DEPOSITED INTO THE DESIGNATED LOTTERY TRUST ACCOUNT(S) AFTER THE BINGO EVENT.

ANY INTEREST ACCRUED ON THE DESIGNATED LOTTERY TRUST ACCOUNT(S) MUST BE USED FOR THE CHARITABLE OBJECTS OF THE LICENCEE AS STATED ON THE LOTTERY APPLICATION FOR LICENCE AND REPORTED ON THE LOTTERY REPORT FORM.

Reminder

It is a breach of the Lottery License Terms and Conditions to move any lottery funds from the Designated Lottery Trust Account(s) into an operating or general account of the Licensee.

This notice has been prepared to clarify some of the questions arising with respect to administering and establishing Designated Lottery Trust Account(s). It is to be used as a guideline only. It is the responsibility of the members of the organization conducting the event and the Principal Officers of the organization to become familiar with the Lottery Terms and Conditions and for the requirement of establishing and administering Designated Lottery Trust Account(s).

Charitable Organizations are required to file the following documents annually with the Lottery Licensing Office immediately following their fiscal year end unless otherwise indicated below:

• Cover Letter outlining the amount of funds the Organization is requesting to raise during their upcoming fiscal year period via the conduct of lottery events, including proposed use of lottery proceeds;
• Current List of Board of Directors - complete with full names, term elected for, and City and Province of each Director; 
• Copy of current Operating Budget reflecting proposed revenue and expenditures for the Organization's entire operation for the upcoming fiscal year;
• Copy of Annual Financial Statement for the Organization's entire operation (audited where applicable/signed by three of the licensees Board of Director's) as soon as it is practical to do so;
• Statement of Compliance;

Sports Organizations are also required to submit a listing of the names of their athletes, along with their birthdates, at the beginning of each season.

Note: Sports Organizations that have both junior participants (under the age of 18 years) as well as senior participants (18 years of age and over) must submit separate operating budgets - one budget for the junior level one budget for the senior level. Costs to deliver the youth program must be isolated from the adult program.

The Annual Filing Requirements must be submitted to the Lottery Licensing Office within 180 days of its fiscal year end.