Licensees that operate their own call centres must use their bona fide members and/or their own staff members, provided that the staff members’ primary responsibility is not providing gaming services that would normally require registration. If space restrictions prevent a licensee from giving full details of the prizes to be awarded, the licensee should refer the customer to a brochure, website or other resource containing those details. When the total prize value of a fixed-prize raffle licence is $10,000 or greater, the licensing authority requires an irrevocable standby letter of credit as the form of financial guarantee. The request to cancel must be made in writing to the applicable licensing authority with an explanation of why the licensee is making the request.

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The licensee is responsible to ensure that safety precautions, safety equipment and safety procedures are in place in the conduct and management of this lottery. The drop must be witnessed by the designated members-in-charge and an auditor. The rules for winning must be clearly stated on the licence application and on the calendar itself. The applicant must establish a procedure for conducting the raffle draw if not all tickets have been sold.
Remember that all suppliers are required to have a contract with a casino PRIOR to contacting the Gaming Licensing and Investigation’s Division. A supplier means any person that sells or leases, or contracts to sell or lease, any casino gaming equipment, devices, or supplies, or provides any management services, to a license. The first $10,000 of net proceeds is exempt from taxation. When you apply for a raffle license, you will need to prove that your organization has made significant progress towards its stated purpose(s) during the 12 consecutive months prior to applying for a license. You may offer two unlicensed raffles to the public each year if the combined gross revenue from the two raffles does not exceed $5,000 in a calendar year.

2.1 (D) “Golf ball drop” raffle lottery

Licensees must identify on each deposit slip the date of the raffle event for each deposit made into the designated lottery trust account and specify the total proceeds deposited for each individual event. The draws will take place at the second intermission during hockey games, on the first and fifteenth of each month, from January to March. The licensing authority may issue a licence allowing an organization to hold more than one paper-based 50/50 draw over a specified time period, provided that there is a separate draw for each scheduled time during the licence period. The licensee must ensure the rules of play submitted for the conduct and management of the event and the awarding of prizes are carefully followed. This procedure must be submitted as part of the licence application.
Charities must have an active licence in order to offer and maintain player subscriptions, and must provide all relevant terms and conditions of the subscription to players prior to entering into a new or renewed subscription agreement. Charities may obtain a licence that permits multiple draws over an extended period, such as during a sports season. All proposed solutions, including charity-developed spinalto sales platforms, are subject to review and approval by the AGCO’s Technical and Laboratory Services. There are a number of registered Gaming-Related Suppliers with AGCO-approved electronic raffle solutions that charities may use. Licensees may conduct and manage a maximum of four online raffles at the same time. An irrevocable standby letter of credit is required for all fixed-prize electronic raffles.

• Licensed charities are permitted to accept sponsorship for their electronic raffles in the form of fixed cash or merchandise prizes.
• Charities must have an active licence in order to offer and maintain player subscriptions, and must provide all relevant terms and conditions of the subscription to players prior to entering into a new or renewed subscription agreement.
• An organization must designate a minimum of two bona fide members to be in charge of the conduct of a raffle lottery event.
• An applicant for a license must represent a “qualified organization.” Strict financial record keeping is mandated.
• Pertaining to the “Name the Raffle” Lottery are to be submitted to the licensing authority with the application.

Rules of play

Guided by the motto “law for all,” our attorney authors and editors have been explaining the law to everyday people ever since. The unclaimed prize must be held in trust by the licensee for a period not less than six (6) months from the date the prize was awarded. Where vacations are offered as prizes for raffle lotteries, the locations and dates of the arrivals and departures for all portions of the vacation package must be included in the licence application. An organization must designate a minimum of two bona fide members to be in charge of the conduct of a raffle lottery event. In order for a lottery scheme to be legal it must be conducted and managed by bona fide members of the licensed organization. If a licensee uses gaming services provided by an unregistered supplier or sub-contractor, the licensee will be in breach of the terms and conditions of the lottery licence.

2.1 (I) “Name the raffle” lottery

A licensing authority may also refuse a licence amendment request. A licensee must conduct a raffle lottery in accordance with its licence application and the terms and conditions of the licence. Where the value of prizes is based on factors beyond the applicant’s control, it is impossible to properly administer the event. A licensing authority must not issue a licence for a raffle in which part of or the entire purchase price of a ticket is a “donation”. With the exception of “rubber duck” races, a licensing authority may not issue a licence for any scheme where the winner of a prize is decided on the outcome of a single sporting event, contest or race.

2.1 (D) “Golf ball drop” raffle lottery

The winner is the first player whose set of cards all match the cards turned up by the dealer and who calls out “bingo.” A licensee may apply to the licensing authority for a blanket licence to conduct any number of these raffle events or combination of these raffle events for up to a maximum of a year and for a total prize board not to exceed $50,000. The fixed prizes, such as cash or merchandise, must be paid from the charity’s half of the ticket sales Since the actual prize for each draw cannot be determined before the draw date, the organization must indicate the maximum possible prize on the licence application. Tickets for paper-based 50/50 draws may only be sold during scheduled time periods, such as sporting events. The supplier of the “ducks” does not have to be registered under the Gaming Control Act, 1992 as a Gaming-Related Supplier.

• A common practice for increasing revenue from ticket sales is to offer bulk sales of tickets, e.g., $10 per single ticket or $25 for three tickets, although this practice is illegal in some countries.
• If a licensee uses gaming services provided by an unregistered supplier or sub-contractor, the licensee will be in breach of the terms and conditions of the lottery licence.
• Eligible charitable or religious organizations may apply to the Registrar for a licence to conduct and manage electronic raffles.
• Licensees that operate their own call centres must use their bona fide members and/or their own staff members, provided that the staff members’ primary responsibility is not providing gaming services that would normally require registration.
• All electronic raffles are required to provide clear communications on resources available to support problem gambling.
• If space restrictions prevent a licensee from giving full details of the prizes to be awarded, the licensee should refer the customer to a brochure, website or other resource containing those details.

Any variation from the format approved by the licensing authority would constitute a breach of the terms and conditions of the licence. The licensee must ensure that all the rules approved by the licensing authority for the conduct of the draw and awarding of prizes are carefully followed. Municipalities may only issue licences permitting eligible organizations to conduct non-electronic raffle lotteries where the total value of the prizes to be awarded, including any taxes is $50,000 or less. Only the Registrar issues licences for electronic raffles, regardless of prize amount. Only the Registrar may issue a raffle licence permitting an eligible organization to conduct a raffle lottery event in an unorganized territory, on Crown lands or in First Nations communities that do not have their own Order in Council . A common practice for increasing revenue from ticket sales is to offer bulk sales of tickets, e.g., $10 per single ticket or $25 for three tickets, although this practice is illegal in some countries.
Whether it’s another article, a book, a form, or a connection to an attorney, we’ve got solutions for all situations. Make Nolo a Preferred Source to see more of our attorney-created legal guides on Google. For details, refer to IRS Publication 3079, Gaming Publication for Tax-Exempt Organizations, available on the IRS website. Moreover, nonprofits engaged in gaming must keep records of gross receipts from gaming, prize payouts, and other related disbursements to substantiate information submitted to the IRS. First, any money a nonprofit receives in connection with any of these fundraising activities is not a deductible charitable contribution.
The organization must submit the names of the designated bona fide members to the licensing authority and must be prepared to provide documentation proving the designated individuals are bona fide members and not members of convenience. If changes to the licence application package are made before submission to the licensing authority, each change must be initialled, on each document, by the individual(s) with signing authority for the applicant. Below is an example of a raffle lottery events schedule that might be used by the applicant to provide details to the licensing authority about each of the events to be conducted under a blanket raffle licence. The licensing authority may also require a financial guarantee when it determines it is appropriate, including for a prize amount less than $10,000 amount or where the prize is a percentage of the gross ticket sales. A registered raffle solution provider (gaming supplier) provides the approved e-raffle solution for the ticket sales of 50/50 e-raffle tickets only (and not other types of electronic raffles such as Catch the Ace raffle). As part of their conduct and management responsibilities, it is up to charities to ensure that they are working with a registered supplier and using the approved version of a supplier’s technical solution.