It is not uncommon for charities or not-for-profit organizations to sell raffle tickets to raise funds at their events. However, not all organizers are aware of the licensing requirement under the law.
Under the Criminal Code, it is unlawful to conduct or manage a game of chance, including lotteries, slot machines, car games, fortune wheels, and random draws, except as specifically exempted.+
Contravention to this section of the Criminal Code is an indictable offence, and a conviction may lead to imprisonment not exceeding two years. Individuals who buy tickets or participate in an unlicensed game may be prosecuted under summary conviction under subsection 4 of the same section.
In Ontario, lawful lotteries are available through the Ontario Gaming and Lottery Corporation, a Crown agency established under the legislation.
If you are a charitable organization, you can apply for a licence to hold a lawful gaming event under the Gaming Control Act.* Depending on what kind of schemes you have in mind, you may apply for a licence with your local municipality or the province.
You will need to provide relevant documents to qualify as a charitable organization for the purpose of applying for a gaming licence. Regardless of the charitable cause, the organization must have been in existence for at least one year prior to the application. The organization must also have a place of business in Ontario, demonstrate that it has been established to provide charitable services in Ontario, and use proceeds for objects or purposes which benefit Ontario residents.
If you require assistance to apply for a charitable gaming license, please do not hesitate to contact me at 416 433 5531.
+ Criminal Code, R.S.C. 1985, c.C-46, s. 206.
* S.O. 1992, c.24
