Overview of Lottery Licensing

You can apply for a lottery licence in the City of Port Colborne if you represent a charitable or religious organization. The Government of Ontario and the Alcohol and Gaming Commission of Ontario (AGCO) regulate lottery licensing in Ontario. 

 How do I know if my event needs a licence? 

  It involves the following 3 elements of a lottery scheme:
  1. A prize
  2. A chance (to win the prize)
  3. A fee

 Common lottery schemes that require a licence

  • stub draw
  • calendar draw
  • 50/50 draw

Visit the AGCO for more information on other types of lottery schemes, and information on prohibited lottery schemes.

 How do I know if my organization or group is qualified for a lottery licence?

1. It is able to demonstrate that it exists to provide services in one of the following four charitable       classifications:

    1. The relief of poverty

    2. The advancement of education

    3. The advancement of religion

    4.  Other charitable purposes beneficial to the community, not falling under 1, 2, or 3

Visit the AGCO for more information on each of these classifications and for ineligible organizations. 

 2.  It passes the Eligibility - Quick Screen.

 

Note:  For those lottery events that can be licensed, some lottery licenses are issued by municipalities and others must be issued by the Alcohol and Gaming Commission of Ontario.  

  How to Get a Lottery Licence

Step 1 - Demonstrate that your Organization is Eligible for Lottery Licensing 

Complete the Eligibility Application and attach your required Eligibility Documents.

Step 2 - Demonstrate that your Proposed Use of Proceeds is Eligible for Lottery Licensing

Lottery proceeds cannot be raised without an eligible, approved use of proceeds in place. Complete the Use of Proceeds Plan Form.

 Step 3 - Apply Early

Submit your Application Package. Applications can be found below under Lottery Applications and Reports.

  • When a lottery licence is issued, the licensee becomes responsible for the conduct and management of the lottery event.
  • If you need to make a change to your licence, you must submit a written amendment request in advance.
  • If you wish to cancel a lottery licence, you must request to cancel your lottery licence in advance.

 Step 4 - Open a Designated Lottery Trust Account

Provide a letter from your bank confirming that you have opened a "designated lottery trust account".

 Visit the AGCO to learn more about the lottery trust account settings required and the financial requirements of lottery licensing.

 Step 5 - Conduct and Manage your Lottery Event, as licensed

Bona Fide Members of the organization must conduct and manage the licensed lottery event according to the Terms and Conditions and the Financial Requirements for running the event.

 

Note:  Members need to ensure that they do not have a conflict of interest while running the event.

 Step 6 - Report

Licensees must complete accurate standard financial reports for each lottery event.

  • Lottery Reports must be signed by the Board and received by the City within 30 days of the lottery event.
  • Report monthly until all lottery proceeds have been disbursed.
  • Provide an annual financial statement for designated lottery trust accounts within 180 days of the organization's year-end. (If requested by Licensing Clerk).

 Step 7 - Maintain Eligibility

Update your eligibility documents before your next lottery licence application. 

Review the eligibility documents check list and submit any updates to the Licensing Clerk. Example: current year budget, changes in Board of Directors, changes in your programs or services.

Lottery Applications and Reports

 Raffle Lottery

A Raffle Lottery is where tickets are sold for a chance to win a prize in a draw. A license is issued for a maximum prize value of $50,000. 

All lotteries where the prize value is over $50,000 are licensed by the AGCO - Alcohol and Gaming Commission of Ontario.

  • The Lottery Licence Fee is based on 1.5% of the prize value.
  • The Lottery Fee is payable by cheque from the organization's lottery trust account. All cheques are made payable to the City of Port Colborne.

Raffle Application

Raffle Terms and Conditions

Raffle Report (submitted 30 days after the event). 

 Blanket Raffle Lottery

A blanket raffle licence allows eligible organizations to obtain a single lottery licence to conduct and manage more than one type of raffle event within a fixed period and from one location within a capped prize amount of $50,000 for total prizes.

Visit AGCO for more information on a Blanket Raffle.

Blanket Raffle Application 

Blanket Raffle Terms and Conditions

Blanket Raffle Report 

 Catch the Ace

Visit the AGCO for frequently asked questions about Catch the Ace Progressive Raffle or running a Catch the Ace Progressive Raffle.

  • Raffle Licence application is also used for Catch the Ace.

 Bazaar Lottery

Bazaar Lottery is a one-day event where any combination of the following lotteries may be conducted:

A wheel of fortune event at which there are no more than three wheels and individual bets are no more than $2;

A raffle or penny auction lottery not exceeding $50,000 in prizes;

A bingo lottery not exceeding $5,500 in prizes. 

  • The Lottery Licence Fee is based on 1.5% of the prize value.
  • The Lottery Fee is payable by cheque from the organization's lottery trust account. All cheques are made payable to the City of Port Colborne.

Bazaar Application

Bazaar Terms and Conditions

Bazaar Report (submitted 30 days after the event). 

 Break Open Tickets

Break Open Tickets are instant-win lottery tickets commonly known as Pull Tab or Nevada Tickets.

  • The Break Open Ticket Fee is based on 3% of the prize value.
  • The Lottery Fee is payable by cheque from the organization's lottery trust account. All cheques are made payable to the City of Port Colborne

Visit AGCO for information on Break Open Tickets.

Break Open Ticket Application

Break Open Ticket Terms and Conditions

Break Open Ticket Report

 Bingo Lottery

Bingo Lottery is a game of chance, selected at random on pre-printed bingo cards.

  • The Bingo Lottery Fee is based on 1.5% of the prize value.
  • The Bingo Lottery Fee is payable by cheque from the organization's lottery trust account. All cheques are made payable to the City of Port Colborne.

Visit AGCO to learn more on conducting a Bingo Lottery.

Bingo Application

Lottery Licence Terms and Conditions

Bingo Report

 E-Raffles

E-Raffles are a new form of charitable fundraising that is being licensed by the Alcohol and Gaming Commission of Ontario.  They’re a modern version of traditional paper raffles – including 50/50, fixed-prize and “Catch the Ace” draws.  As with other types of raffles, there is no cap on the prize levels that can be reached and using electronic means, charities may be able to reach more people and raise more money than traditional paper raffles. There are two main types of e-raffle technology that can replace traditional paper raffle tickets: In-person raffles - where volunteers sell tickets in approved locations using hand-held point-of-sale (“POS”) units - and online raffles. For more information on E-raffles click here.

E-Raffles are licensed by the Alcohol and Gaming Commission of Ontario. Visit the AGCO if you are planning an E-Raffle.

Alcohol and Gaming Commission of Ontario - AGCO

For further resources, visit AGCO for complete information on their Lottery Licensing Policy Manual (LLPM).