“Break open tickets” (BOTs) are instant-win lottery tickets, commonly known as “pull tab” or “nevada” tickets and the brand name “Pocket Slots.” Break open tickets:
Some break open ticket games offer the traditional instant prizes and a chance to win a secondary/special prize. Two such games are “seal card” games and “bingo event ticket” games.
Seal card games feature tickets called “hold tickets” that provide certain players a chance at a secondary prize or prizes determined by removing a window from a larger break open ticket known as a “seal card.” The seal card is opened to reveal winning numbers or symbols that match the numbers or symbols on the player’s “hold” ticket.
See “7.4.1(A) Seal card game policies”, and the Break Open Ticket Licence Terms and Conditions for further information.
For pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions, and Financial Management and Administration of Pooling Bingo Halls Terms and Conditions for further information.
Similar to the seal card game, a “bingo event ticket” game also provides players a chance at a secondary/ special prize. The difference is that these games are conducted in conjunction with licensed bingo events and feature “hold” tickets that contain bingo ball numbers or symbols based on the number of bingo balls being used in the bingo event. The winner of the bingo event ticket game prize(s) is determined by matching the bingo ball symbol(s) on the hold ticket with one or more of the bingo numbers called during a licensed bingo event or dabbing a pattern of bingo ball numbers or symbols on the game ticket during a bingo event.
See “7.4.1(B) Bingo event ticket game policies”, and the Break Open Ticket Licence Terms and Conditions for further information.
For pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions and and Financial Management and Administration of Pooling Bingo Halls Terms and Conditions for further information.
In order to be approved for sale in Ontario, all break open tickets, including seal card games and bingo event game tickets, must comply with the Registrar’s requirements and standards related to break open tickets, including the Standards for Suppliers of Goods and Services: Break Open Tickets.
Schedules of approved break open tickets are available from the Registrar and can be found on the AGCO website.
Break open tickets are packaged in “boxes” within “deals” and are identified by “type” and “style.”
Deal: Refers to each separate series of break open tickets with the same serial number.
Box: Refers to a separately sealed box of break open tickets within a deal, as shipped by the Gaming- Related Supplier.
Type: Refers to the number of tickets per deal, the price of each ticket and the total prize value per deal.
Style: Refers to the combination of approved graphics (such as bells, boats or fruit) and prize structure used for the break open tickets. There may be many different styles within a break open ticket type, as approved graphics may be used with any type, and several different prize structures may be approved for each type.
Prize Structure: Refers to the number and combination of winning tickets and prize amounts used to reach the total prize value in the break open ticket type, as approved by the Registrar.
Prize structure example:
Number of Winning Tickets = 223 Total Prizes = $1,015
1 x $300 =$300
4 x $100 =$400
1 x $50= $50
2 x $25 =$50
215 x $1 =$215
Graphics: Refers to the symbols (such as bells, boats or fruit) and any other approved illustrations appearing on the break open tickets.
Break open tickets are sold either in a transparent container or an approved break open ticket “dispenser.”
Container: A clear box from which an attendant manually withdraws break open tickets. Break open ticket containers do not require prior approval by the Registrar.
Dispenser: A break open ticket dispenser is an electrical or mechanical device used to dispense break open tickets. Break open ticket dispensers must be approved by the Registrar and manufactured by a manufacturer registered as a Gaming-Related Supplier registered under the Gaming Control Act, 1992.
Licensees may purchase break open tickets directly from any manufacturer that is registered as a Gaming-Related Supplier under the Gaming Control Act, 1992.
Registered Gaming-Related Suppliers are permitted to supply break open tickets to licensees for sale at bingo halls or other charitable gaming sites, third-party locations or their own premises.
Cash, rebates, loyalty rewards and other similar incentives to registered third-party locations that sell break open tickets (break open ticket Sellers and OLG Lottery Retailers) in order to obtain the use of, or to secure the continued use of, their services is not permitted and may result in administrative sanction.
A list of approved manufacturers of break open tickets for the Ontario market is available from the Registrar.
In addition to the general conflict of interest guidelines outlined in Section 3.5.3, licensees must comply with the following guidelines for break open ticket lottery events:
See “7.1.3. Break open ticket suppliers” for further information.
The Order-in-Council gives the Registrar sole authority to issue lottery licences allowing eligible organizations to conduct and manage:
Municipalities issue licences permitting eligible organizations to conduct break open ticket lotteries from locations within their own boundaries, provided the break open ticket lotteries are not conducted and managed in conjunction with another licensed gaming event.
See also “2.2.4. Policies: Organizations that amalgamate” for further information.
See Section “7.9.1. Retention and destruction of break open tickets” for further information.
See “7.5.1. Municipal licensing policies”, and “7.6.1. Provincial licensing policies” for further information.
The following policies apply specifically to seal card games:
See the Break Open Ticket Licence Terms and Conditions for further information.
For Hall Charities Associations in pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
The following policies apply specifically to bingo event tickets:
See the Break Open Ticket Licence Terms and Conditions for further information.
For Hall Charities Associations in pooling bingo halls operating under the Bingo Revenue Model, see the Charitable Gaming Events Conducted and Managed in Pooling Bingo Halls Terms and Conditions.
The following licensing policies apply to break open ticket licences issued by municipalities:
See “7.7.1. Sales locations for break open tickets” for further information.
The following procedures apply to break open ticket licences issued by municipalities:
For first time applicants, please refer to the documents outlined in “7.1.0. Introduction”.
It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).
The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.
However, the licensee may choose to apply for an amendment to remove that ticket type from the licence in order to reduce the reporting requirement. Otherwise, the licensee must report nil sales for the remainder of the licence period.
The following licensing policies apply to break open ticket licences issued by the Registrar to Hall Charities Associations in non-pooling bingo halls:
In order to sell break open tickets throughout the province, an eligible organization must demonstrate that it provides a direct benefit to communities across Ontario and its services are accessible throughout the province.
A provincial break open ticket (PBOT) licensee must provide a broad benefit to the residents of Ontario. As a result, certain programs, such as those that are too narrowly focused, are not eligible to receive PBOT proceeds, even though they may be eligible to receive proceeds from other types of lottery licences.
Examples of programs ineligible to receive PBOT proceeds include:
The following policies apply to PBOT licence applications:
It is expected that limitations imposed by licensing authorities on the number of BOT licences issued to any eligible organization will be the result of detailed analysis and only used where the limitation is warranted (for example, where a waiting list of new eligible organizations awaiting BOT sales locations exists).
The Registrar retains the authority to issue PBOT licences. However, the Registrar may place a limit on the number of retail locations permitted per PBOT licensee in a municipality or area covered by a given licensing authority if a similar limit, that is warranted, has been placed on the number of retail locations that may sell BOTs for each charity by the local licensing authority.
The Registrar will permit licensees selling from locations in an amalgamated municipality to continue sales from their former locations for an 18-month period. After 18 months, they must comply with the new municipality’s licensing policies.
Eligible organizations applying for a break open ticket (BOT) lottery licence from the Registrar must follow the procedures listed below. If the organization is an HCA in a non-pooling bingo hall, it must also observe the additional procedures set out in 7.6.2(B).
For pooling bingo halls operating under the Bingo Revenue Model, see Chapter 10, “Bingo—In Pooling Bingo Halls,” for further information.
Eligible organizations applying for a provincial break open ticket (PBOT) licence must follow the procedures outlined in 7.6.2(C).
In addition to the general requirements set out in 7.6.2(A), HCAs applying for break open ticket lottery licences in a non-pooling bingo hall must observe the procedures listed below.
An HCA must submit the following additional information with its application:
When an HCA wishes to sell multiple ticket types under a single licence, it must enter into an agreement with the Operator of the bingo hall, outlining a division of roles and responsibilities. Only the HCA may perform certain duties required for the conduct and management of the lottery event.
Tickets may be sold at the locations and under the circumstances listed below.
A licensee that provides goods or services to itself and sells tickets at its own premises is not required to be registered under the Gaming Control Act, 1992. A licensee may sell tickets from its own premises without registration provided that it:
The landlord of the premises does not have to be registered, provided that the landlord does not participate in the conduct and management of the break open ticket event, and does not receive any payment (rent or otherwise) based on a percentage of tickets sold.
A licensee selling from its own premises may choose to pay itself rent for the portion of the premises used for the sale of its break open tickets. In order to create an audit trail for these rental payments, the licensee must issue itself an invoice, and pay itself with a cheque issued from the lottery trust account. The revenue from these rental payments may be deposited to its general account. A licensee’s expenses related to the sale of break open tickets must not exceed the maximum amount established by the Registrar.
If an eligible organization proposes to sell break open tickets at a location other than a bingo hall or a premises it owns or leases for its own charitable activities, the location must be registered as a Seller under the Gaming Control Act, 1992. The Seller’s registration number must be included with the licence application.
In order to sell break open tickets at a registered Seller location, the licensee must enter into a contract with the Seller. This contract must contain a termination clause allowing either party to terminate the contract upon at least 90 days written notice prior to licence expiry, to be effective upon licence expiry. The termination clause must also provide for immediate cancellation of the contract should the organization’s licence or the Seller’s registration be suspended or revoked. In the event that a licence is suspended or revoked, the Seller may enter into a contract with another licensee.
The licensee may pay the Seller the allowable commission for the sale of break open tickets. The licensee may choose to request its net proceeds (gross proceeds minus sales commissions) when the break open tickets are delivered to the Seller. Alternatively, the licensee may choose to allow the Seller to pay the net proceeds for all break open tickets within 30 days after they have been delivered for sale.
If a licensee cancels a contract with a Seller and the Seller does not sell all the deals but has paid the full net proceeds, the licensee must refund to the Seller the full amount of the net proceeds for the unsold deals.
For purposes of reconciliation, the Seller is responsible for the security of the break open tickets once the seal on the deal package is broken. The Seller must return all the unsold deals and partial deals to the licensee, to allow the licensee to do a full reconciliation.
A municipality may issue break open ticket licences allowing eligible organizations to sell break open tickets at special community events of limited duration, such as community festivals, regardless of whether or not they have licences to sell tickets at break open ticket Seller locations, provided that:
An eligible organization with a current break open ticket licence may apply to be licensed to sell tickets at a community festival in one of two ways:
If a registered Seller location or a licensee-owned (or leased) premises is already selling break open tickets on the community event grounds, they may continue their ticket sales during the event.
Break open ticket sale locations at festivals and other community events do not have to be registered as Seller locations under the Gaming Control Act, 1992 unless the location is providing other services that would require registration under the Act.
The Registrar may issue break open ticket licences allowing eligible organizations to sell tickets at designated fairs or exhibitions, regardless of whether or not they have licences to sell break open tickets at Seller locations, provided that:
Break open ticket sale locations at designated fairs or exhibitions do not have to be registered as Sellers under the Gaming Control Act, 1992 unless the location is providing other services requiring registration under the Act.
If a registered Seller location or a licensee-owned (or leased) premises is already selling break open tickets on the designated fair or exhibition grounds, they may continue their ticket sales during the event.
Break open ticket dispensers are electrical or mechanical devices, and do not include “containers” as defined in 7.1.2, used to dispense break open tickets. They may be used in bingo halls, Seller locations registered to sell break open tickets under the Gaming Control Act, 1992 and at other locations exempt from registration, provided the following conditions are met:
If the licensee chooses to rent a dispenser, the licensee must enter into a written contract with the registered Gaming-Related Supplier. Any rental contract must state the terms and duration of the rental and outline what will happen in the event that the licence is suspended, revoked or cancelled.
The Break Open Ticket Licence Terms and Conditions require that the seal card be prominently displayed identifying the dollar value of the seal card prizes available to be won.
The Break Open Ticket Licence Terms and Conditions require that a bingo event ticket game poster be displayed to identify the dollar value of prizes available to be won.
In order for a lottery scheme to be legal it must be conducted and managed by bona fide members of the licensed organization. The licensee must designate at least one bona fide member to be responsible for the conduct of the break open ticket lottery. If the tickets are to be sold by an HCA in a non-pooling bingo hall, the association must designate a minimum of two bona fide members.
The licensee must submit the names of the designated bona fide members to the licensing authority and must be prepared to provide documentation proving that the designated individuals are bona fide members and not members of convenience. The designated members must be at least 18 years old. (See also “3.5.2 Bona fide members”.)
For pooling bingo halls operating under the Bingo Revenue Model, see “10.5.1(a) Bona fide members” for further information.
Destruction of unsold, imprinted tickets ensures that gaming product is not re-introduced into the marketplace for illegal sale. The licensee must keep reconciled tickets for 90 calendar days after the interim or final report is filed with the licensing authority and then destroy them in the manner set out below.
Following the prescribed retention period, the following tickets must be destroyed:
The tickets must be destroyed in the following manner:
The Registrar retains the sole authority to approve all tickets, including their graphics, prizes, prize values, sponsorship and promotions. Only ticket types and styles approved by the Registrar may be sold in Ontario.
Licensees are permitted to award merchandise as prizes for BOT lotteries, in addition to existing prize options of cash or free tickets. The value of merchandise prizes for purposes of establishing the prize board and licence fees will be based on the manufacturer’s suggested retail price (MSRP). Licensees must be able to provide documentation indicating the MSRP of prizes at the time they were obtained for reporting purposes and upon request.
Merchandise prizes may be stored at a premise other than the retail location. Licensees are required to provide the winning ticket holder with a claim ticket to be exchanged for the actual prize which, in turn, must be awarded within one week of winning ticket redemption. Licensees must ensure that the winning ticket holder can pick up the prize at the retail location or should deliver the prize directly to the winning ticket holder within the one-week period. This will be communicated through a sign posted by the licensee at the point of sale stating these requirements.
In order to ensure retailers are not required to keep large sums of cash onsite to pay out top prizes, licensees, in consultation with their retailers, may designate an amount above which customers will receive a claim ticket for their prize. All cash prizes must be paid within 48 hours. Licensees are required to ensure that retailers post a sign notifying customers of this.
Licensees may permit external sponsors to place their branding on break open tickets sold by the licensee. The ticket must be prominently identified as a charity product. Any benefits realized by the manufacturer or the supplier are to be disclosed to the licensee. Sponsorship and branding must comply with the prescribed graphic approval requirements.
As part of the prescribed prize board, licensees may offer prizes provided by external sponsors.
Games may be developed whereby players submit the played ticket for a coupon to be redeemed for a free item, at which point no further purchase is required. The face value of the coupon is to be included as part of the prize board.
A licensee may elect to sell break open tickets that have promotions of additional value attached to them. The value of the promotions may or may not be included in the prescribed prize board. The ticket may be used or redeemed for a coupon in the following manner: