Charitable Gaming

Lottery Licensing Regulations

TRADE PRACTICES DIVISION
DEPARTMENT OF GOVERNMENT SERVICES
5 MEWS PLACE
PO BOX 8700
ST. JOHN'S NL  A1B 4J6
CANADA

Other Locations and Contact Numbers

What is a Lottery
Who qualifies to conduct a charitable lottery
Rules for conducting a charitable lottery
How to apply for a lottery
How the funds raised from a charitable lottery can be used
What do I need to know after the lottery has been completed
How to make a complaint regarding a charitable lottery
Charitable Gaming statistics
Lottery Links
Lottery Forms, Pamphlets and Information

What is a Lottery

A lottery is any game in which you are required to pay a fee or give something to enter, this is called consideration, there is a draw or some way that randomly picks a winner, this is called chance, and you win a prize.

In this province there are two main types of lotteries or gaming:

games that are conducted by the Atlantic Lottery Corporation on behalf of the Government of Newfoundland and Labrador and include 6/49, Super 7, scratch tickets, breakopen tickets that are sold in convenience stores and video lottery terminals or VLTs;
games that are conducted by charitable and not-for-profit organizations and include bingo, ticket lotteries, games of chance, card games, monte carlo events and breakopen tickets that are sold at bingos and other fundraising events.

There are also promotional contests where you purchase an item and along with your purchase you get a chance to win something. These are normally not considered lotteries as most promotional contests have a no purchase necessary element and a skill testing question. For more information on promotional contests contact the Competition Bureau Canada.

Who qualifies to conduct a charitable lottery

As per the Terms and Conditions (PDF: 40 KB) generally only charitable and not-for-profit organizations qualify for licences. Individuals and businesses wishing to raise funds for a charity should contact the charity directly. Individuals and businesses wishing to raise funds for a charitable cause should contact an incorporated not-for-profit organization.

What types of groups qualify:

Incorporated Not-For-Profit groups such as museums, music groups, health associations, churches;
sports and recreation groups that have a valid Lotteries Amateur Sports Certification (PDF: 210 KB) or a Lotteries Recreation Certification (PDF: 65 KB);
volunteer fire departments registered with the Office of the Fire Commissioner;
seniors groups that are Incorporated Not-For-Profit or a member in good standing of the Newfoundland and Labrador Pensioners, Senior Citizens/50+ Federation;
K-12 Schools (PDF: 88 KB) and College and University Groups (PDF: 80 KB)
service clubs who are Incorporated Not-For-Profit or are affiliated with grand lodges or chapters;
scouting, guiding and cadet groups.

Rules for conducting a charitable lottery

There are General Rules (PDF: 39 KB) that apply to all lotteries. Each individual type of lottery has its own set of rules, Bingo (PDF: 66 KB), Breakopen (PDF: 60 KB), Bingo/Breakopen (PDF: 43 KB), Ticket Lotteries (PDF: 39 KB), Games of Chance (PDF: 20 KB), Monte Carlo (PDF: 27 KB) and Sports Lotteries (PDF: 29 KB). There is a Consolidated version of the rules available. There are also specific rules as they relate to Poker Games (PDF: 84 KB), and for bingo there are specific rules for Loonie Pot or Cookie Jar Bingo Games (PDF: 22 KB), Accumulated Jackpot Games (PDF: 27 KB), Media Accumulated Jackpot Conditions (PDF: 24 KB), 50/50 7-10 Ball Games (PDF: 29 KB), Satellite Bingo (PDF: 27 KB) and Satellite Bingo Prizes (PDF: 31 KB).

How to apply for a lottery

First you have to determine what type of lottery you are going to have. We licence Bingos (PDF: 72 KB), Bingos with Breakopen Tickets or Nevada Tickets (PDF: 73 KB), Breakopen Tickets (PDF: 72 KB) alone, Ticket Lotteries (PDF: 72 KB), Games of Chance (PDF: 73 KB), these include card games, wheels or spins and instant win tickets, Monte Carlo or Casino Events (PDF: 72 KB), and Sports Lotteries (PDF: 71 KB). Sports lotteries are prediction pools, player point pools and time tickets, they are not lotteries just for sports groups.

Please allow two weeks for the processing of your application but normally it will take approximately 4 working days if everything is up to date. Make sure you have fully completed the correct application and have included all of the required information. If you are applying for a ticket lottery make sure you include a sample ticket (PDF: 19 KB). You can use our Sample Ticket as a guide in developing your own.

We require some groups to have their application signed or validated by a particular person before a licence can be issued. Below is a list of groups that fall into this category and who must sign the application:

cadet squadrons and corps - commanding officer;
volunteer fire departments - fire chief or assistant fire chief;
K-12 Schools (PDF: 88 KB) - Principal or Vice Principal;
college and university groups - varies depending on the group. Refer to Eligibility for College And University Groups (PDF: 80 KB) for a list of who should sign;
libraries - Provincial Library Board representative;
church groups and parishes - church official (Minister/Priest/Sister);
scout groups - Scouts Canada Headquarters;
girl guides, pathfinders, brownies and sparks - District Commissioner;
Royal Canadian Legions - must contain a Provincial Command Stamp.

Before applying for a licence a sports group should read the Eligibility for Sports Groups Memo (PDF: 88 KB) to determine who should apply for the licence.

How the funds raised from a charitable lottery can be used

Funds raised through lotteries must be used for a charitable or religious object or purpose. This means that the proceeds must be used for the relief of poverty, advancement of education, the advancement of religion, or other purposes beneficial to the community. Specifically we have use of proceeds rules for College and University Groups (PDF: 85 KB) and K-12 Schools (PDF: 88 KB).

The following are a list of unapproved use of proceeds:

upkeep or maintenance of service clubs;
to promote tourism or other activities that are economic in nature;
municipal infrastructure or development;
for lobbying purposes or to oppose changes in law or government policy;
education purposes of members of groups other than k-12 and college and university groups;
expenses of political parties;
professional development for nurses, teachers and other professionals;
membership conferences for service clubs;
membership fees for organizations, their members or staff in professional or recreation associations;
pay salaries of support staff;
operational expenses of groups.

What do I need to know after the lottery has been completed

When your licence is issued it’s stated on the back of the licence whether you have to file a financial report after your event. If you have to file a report it is due 60 days after the expiry of the licence. Each individual type of lottery has its own Financial Report, Bingo (PDF: 75 KB), Breakopen (PDF: 67 KB), Bingo/Breakopen (PDF: 68 KB), Ticket Lotteries (PDF: 68 KB), Games of Chance (PDF: 67 KB), Monte Carlo (PDF: 68 KB) and Sports Lotteries (PDF: 69 KB). If you are required to submit a Financial Report you are also responsible to pay a licencing fee. The method of calculating the fee is listed on the front of each Financial Report, generally it is 1% of your prize payout, $5 per wheel or game and or $10 per box of breakopen tickets.

How to make a complaint regarding a charitable lottery

If you have a complaint regarding 6/49, Super 7, scratch tickets, breakopen tickets that are sold in convenience stores and video lottery terminals or VLTs, please contact the Atlantic Lottery Corporation.

If you have a complaint about an illegal lottery please contact the Royal Newfoundland Constabulary or the Royal Canadian Mounted Police.

If you have received information in the mail stating that you have won a lottery that you have not entered please contact Phonebusters.

Complaints regarding charitable lotteries should be made with the organization first. If the organization does not resolve your complaint please Contact our Office or file a complaint with us. To register a complaint on line, use our On-Line Complaints page or to mail or fax your complaint, please download the Complaint Record Form (PDF: 92 KB).

Charitable Gaming statistics

Lottery Links

Organization	Address
Atlantic Lottery Corporation	www.alc.ca
Canadian Registered Charities	www.cra-arc.gc.ca/tax/charities/online_listings/charity_listings-e.html
North American Association of State and Provincial Lotteries	www.naspl.org
North American Gaming Regulators Association	www.nagra.org
Canadian Pari-Mutuel Agency (Horse Racing)	www.agr.gc.ca/csb/cpma-acpm/index_e.php
Charities Canada	www.cra-arc.gc.ca/tax/charities/menu-e.html
Information Bulletin - Promotional Contests under the Competition Act	www.competitionbureau.gc.ca/internet/index.cfm?itemID=2118&lg=e