The lottery licensing policies in this manual were developed by the Registrar, based on authority and direction flowing from:

• the Criminal Code (Canada);
• Order-in-Council 208/2024 (as amended); and
• the Gaming Control Act, 1992 and its Regulations.

Each type of licensed lottery is governed by a specific set of rules known as “terms and conditions.”

1.1.1. BACKGROUND

In Canada, all authority to license gaming activity flows from provisions in the Criminal Code (Canada), which makes it possible for eligible charitable and religious organizations to conduct and manage lottery schemes under a licence issued by the appropriate provincial authority.

Based on the authority conferred by the Criminal Code, the Government of Ontario has passed an Order- in-Council 208/2024, delegating its authority to license charitable gaming events to:

• the Registrar, and
• municipal councils.

The Registrar has the authority to license all types of approved lottery events. Municipal councils may license certain types of approved lottery events.

1.1.2. THE CONTEXT OF GAMING IN ONTARIO

The responsibility for gaming in Ontario has been divided into three main areas: regulation, licensing of charitable gaming, and conduct and management.

(A) Regulation

The Alcohol and Gaming Commission of Ontario (AGCO) is responsible for regulating:

• commercial gaming (including casinos and internet gaming);
• charity casinos;
• slot machine facilities at racetracks; and
• charitable gaming.

(B) Licensing of charitable gaming

The Registrar as well as municipal councils may issue charitable gaming licences, as outlined in this manual.

(C) Conduct and management

The Ontario Lottery Gaming Corporation (OLG) is responsible for the conduct and management of:

• commercial casinos;
• internet gaming;
• charity casinos;
• electronic bingo centres; and
• slot machines at racetracks.

Where a charitable or religious organization is licensed, it too may conduct and manage a lottery scheme.

The current regulatory framework is based on six key elements :

1. the Criminal Code (Canada)
2. the Gaming Control Act, 1992 and its Regulations
3. the Order-in-Council 208/2024
4. the terms and conditions
5. Standards and Directives issued by the Registrar
6. the Lottery Licensing Policy Manual, together with all updates and information bulletins.

1.2.1 (A) The Criminal Code (Canada)

Eligible charitable and religious organizations may conduct and manage lottery schemes under a licence issued by the appropriate provincial authority under an exception to the Criminal Code (Canada) general prohibition on gambling.

In this manual the term “charitable” includes both “charitable and religious” organizations as referred to in the Criminal Code (Canada).

1.2.1 (B) The Gaming Control Act, 1992

The Gaming Control Act, 1992 regulates the commercial sector of the charitable gaming industry. Among other things, the Act details:

• the requirement to register individuals, corporations, organizations, associations and partnerships that supply gaming services or goods to licensed charitable organizations
• the registration process
• the types of goods and services that may be provided
• the manner in which goods and services may be provided
• reporting responsibilities
• the Registrar’s authority to establish standards and requirements for the conduct, management and operation of gaming sites or lottery schemes under the Act; and
• the registration appeal process.

The Lieutenant Governor in Council may make Regulations prescribing anything required under the Act. For example, the Regulations currently in force establish such things as exemption from registration, classes of registrants and terms of registration.

1.2.1 (C) Order-in-Council 208/2024

The Registrar may issue Standards and Directives that must be followed by licensees and registrants.

1.2.1 (F) Lottery Licensing Policy Manual (LLPM)

This Lottery Licensing Policy Manual (LLPM) contains the policies and some of the procedures licensing officers must use when issuing and administering lottery licences. The policies are derived from the legislation and regulations to address specific aspects of lottery licensing to ensure consistency throughout the province. The manual is updated to contain any policy matters addressed in relevant Information Bulletins, Standards and Directives.

The AGCO also uses the LLPM to communicate changes in the Registrar’s policies and in the regulatory structures for lottery licensing.

The AGCO was established under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996. Order-in-Council 208/2024 gives the Registrar authority to administer the lottery licensing provisions of the Criminal Code (Canada) for the Province of Ontario.

The Registrar’s areas of authority include such things as issuing registrations under the Gaming Control Act, 1992; the issuance, suspension and cancellation of gaming licences; conducting inspections; setting standards; requiring reporting for licensees; and setting fees and terms and conditions on licences.

1.4.1 (B) Municipal administrative responsibilities

As long as it does not contravene criteria established by the Registrar, a municipal council may develop additional criteria, through bylaws and policies, for making licensing decisions and administering lottery licensing in their municipality.

Municipalities must also:

• report any information required by the Registrar
• enforce licensing policies
• ensure that licensees comply with the terms and conditions of their licences
• investigate any breaches of the terms and conditions.

A municipal council may refuse, suspend or cancel licences, in accordance with the Order-in-Council and the Registrar’s policies. The AGCO is available to assist the municipality in any compliance and investigation matters.

Municipalities that issue licences also must ensure that applicants are eligible for lottery licences (see Chapter 2); be fair and equitable when issuing licences; and remain satisfied that licensees continue to meet the requirements of the Criminal Code (Canada), the Order-in-Council and the terms and conditions of their licences.

The Registrar or municipality may suspend or cancel lottery licences where:

• there has been a breach of any term, condition, Directive or Standard
• there are reasonable grounds to believe that the applicant or licensee will not conduct and manage the lottery scheme in accordance with law or with honesty and integrity
• in its opinion it is in the public interest to do so
• an applicant or licensee fails to submit financial reports or other information in accordance with the Registrar’s requirements.

The Registrar also has the power to refuse to issue a licence for the grounds set out in section 5 of the Order-in-Council or to suspend or cancel a licence issued by a municipal council.

If an organization continues to conduct lottery events after its licence has been suspended or cancelled, the lottery events will be illegal pursuant to the Criminal Code (Canada).

See Order-in-Council 208/2024, as well as 3.4.1, “Suspending or cancelling lottery licences,” and 5.11.1, “Requests to cancel raffle licences.”   

Each municipality has the responsibility to investigate any contraventions of the terms and conditions of a licence it issues. A municipality may request the assistance of the local police force or the AGCO.

Municipalities have the authority to:

• investigate suspected contraventions of the terms and conditions of the licensed lottery scheme
• investigate suspected financial and management improprieties of licensed organizations and persons
• conduct audits of licensed organizations.

In addition to the above, the Registrar has the authority to:

• conduct investigations under the Gaming Control Act, 1992
• assist municipalities/local enforcement agencies in any investigation or audit of a licence.

In order to ensure that lottery licensing is administered fairly and consistently, lottery licensing decisions must be guided by the following fundamental principles:

1. Consider the needs of the community as a whole. All eligible organizations must have fair access to gaming opportunities.
2. Consider both the viability of a proposed lottery scheme and the applicant’s ability to execute the scheme.
3. Lottery proceeds must only be used for the direct delivery of eligible charitable programs and services, as stated on the licence application and approved by the licensing authority.