(9) Prizes, Proceeds and Expenses

9.1 General

  1. The net proceeds derived from the conduct of the bingo must be used for the charitable or religious objects or purposes in Ontario as approved in the application for licence.
  2. All prizes and expenses incurred as a result of conducting the bingo must be deducted and paid out from the gross receipts derived from the bingo. The licensee must not use monies from any other source to pay for expenses related to the bingo.
  3. Expenses must be directly related to the conduct of the bingo.
  4. Each expense must be individually calculated and paid by cheque, in Canadian funds, drawn on the designated lottery trust account as described in Section 12. The licensee must pay separately each Gaming-Related Supplier registered under the Gaming Control Act, 1992.
  5. The licensee must make timely payment for goods and/or services received from Gaming-Related Suppliers registered under the Gaming Control Act, 1992.

9.2 Expenses, advertising and gestures of player appreciation

  1. Bona fide members of the licensee, including a bona fide member acting as the caller on behalf of the licensee, and designated members in charge acting on behalf of the licensee who are present and assist at the event may be reimbursed for actual out-of-pocket expenses incurred which shall not exceed $20 per person per event. The maximum amount which can be spent on bona fide member expenses for each bingo event must not exceed three (3) per cent of the prize board for that event.
  2. Bona fide member expenses must not be paid where it would result in a loss or no profit for the bingo event.
  3. Bona fide member expenses may be paid by cash provided they are supported by a receipt.
  4. Advertising and promotional costs incurred by the licensee must not exceed two (2) per cent of the licensed prize board at a given bingo hall.

9.3 Licensees using the services of an Operator of a bingo hall registered under the Gaming Control Act, 1992:

  1. Where the Operator of the bingo hall provides the licensee with both runners andthe caller, the gross receipts from the bingo must be distributed in accordance with the Registrar’s policies and as follows:
    1. The payment of prizes, licencefee, expenses of bona fide members, runners employed by the Operator as set out in Section 3.2(c), hand-held personal bingo verifiers as set out in Section 4.4(c), advertising and promotional costs and transportation costs, as authorized in Section 7.1, must be deducted first from the gross receipts.
    2. The licensee must retain a minimum of 60 per cent of the remaining proceeds.
    3. The licensee may pay the Operator a maximum of 40 per cent of the remaining proceeds after calculating paragraph 9.3(a)(i) up to a maximum of 15 per cent of the gross receipts, whichever is less, as hall rental.
    4. If, after calculating paragraph 9.3(a)(i), the event results in a loss, the licensee is responsible for a maximum 50 per cent of the loss incurred. The licensee must receive the remainder in payment from the Operator.
    5. Cash shortages incurred as a result of an error on the part of the licensee must be deducted from their share of proceeds. Cash shortages incurred as a result of an error on the part of the Operator or its employees must be deducted from the hall rental paid to the Operator. In the event of a loss, the licensee must receive the shortage in payment from the Operator.
    6. The Goods and Services Tax onhall rental, as calculated in paragraph 9.3 (a)(iii), must be paid from the proceeds retained by the licensee.
    7. All other expenses of the Operator must not be paid by the licensee.
  2. Where the Operator does not providethe licensee with both runners and the caller, the gross receipts from the bingo must be distributed in the same manneras paragraph (a) except for the followingchange: The licensee may pay the Operator a maximum of 40 per cent of the proceeds remaining after calculating paragraph (a)(i)up to a maximum of 14 per cent of thegross receipts, whichever is less, as hall rental.

9.4 Licensees not using the services of an Operator registered under the Gaming Control Act, 1992:
Total expenses, not including the Goods and Services Tax, incurred in the conduct of the bingo must not exceed 15 per cent of the gross receipts. Allowable expenses include, but are not limited to, licence fee, expenses of bona fide members, hand-held personal bingo verifiers, advertising and promotions, transportation, as authorized in Section 7.1, shortages, bingo paper, security, storage, equipment and building lease/rent.
9.5 Licensees operating a Special (Monster) Bingo event from a premises which is exempt from registration under the Gaming Control Act, 1992:
Total expenses, not including the Goods and Services Tax, incurred in the conduct of the bingo must not exceed 15 per cent of the gross receipts or such other limit as may be approved by the Registrar. Allowable expenses include, but are not limited to, licence fee, expenses of bona fide members, hand-held personal bingo verifiers, advertising and promotions, transportation, as authorized in Section 7.1, shortages, bingo paper, security, storage, equipment and building lease/rent.

(10) American Currency

10.1 Only licensees which conduct bingos from border cities where the majority of bingo players are American may accept American currency for the payment of bingo paper.
10.2

  1. A licensee which accepts American currency must maintain a second lottery trust account in American funds for the purpose of depositing all funds received in American currency and replenishing the float required in American funds. The account must be operated as outlined in Section 12, except as stated otherwise in this section, American Currency.
  2. No withdrawals, by cheque or otherwise, may be made from this account, except as provided for in paragraphs10.2(a), 10.3(b), 10.9 or unless written permission has been granted by a licensing authority.

10.3

  1. The maximum amount which may be on deposit in the American account at any time must not exceed the licensee’s licensed prize board.
  2. Deposits in excess of the licensed prize board (including interest) must be withdrawn by cheque and deposited into the Canadian designated lottery trust account.

10.4 The distribution of gross receipts must be calculated in accordance with Sections 9.3(a), 9.3(b), 9.4 or 9.5. For licensees which accept American currency, gross receipts referred to in these paragraphs shall refer to the adjusted gross receipts which is calculated as follows:
Total gross receipts in Canadian dollars (+) total gross receipts in American dollars (+) the premium paid on American dollars (-) the premium on the prizes paid out in American dollars.
10.5

  1. When deducting prizes from the adjusted gross receipts, the licensee must not include any premium which may have been applicable to the prizes paid in American currency.
  2. Profit and expense calculations must be based on the adjusted gross receipts.
  3. All expenses must be paid by cheque, in Canadian currency only, drawn on the Canadian designated lottery trust account.

10.6 For the purposes of calculating the adjusted gross receipts, the licensee must use the daily “buying” exchange rate set by the chartered banks. The licensee must obtain this information from the Operator of the bingo hall on a daily basis.
10.7 All bingo paper sold in the lower-valued currency must be distinguished with a hole punch. The licensee must receive the bingo paper pre-punched from the Operator of the bingo hall.
10.8 All players purchasing bingo paper in Canadian currency must be paid prizes in Canadian currency.
10.9 All players purchasing bingo paper in American currency must be paid prizes in American currency and may be paid from the cash proceeds or by cheque from the American account.

(11) Books and records

11.1 The licensee must obtain receipts for each expense incurred.
11.2 The licensee shall maintain detailed records of the disbursement of all proceeds derived from the conduct and management of the lottery schemes.
11.3 The licensee must maintain books, records and other documents in support of all financial reports or statements. These records must be kept up to date and be retained for no less than four (4) years from the date of the bingo.
11.4 The licensee must:

  1. provide unencumbered access to the licensee's books, records and other documents including, but not limited to, those related to the conduct and management of lottery schemes and the use of proceeds from those lottery schemes to persons appointed by a licensing authority and to all peace officers; and
  2. deliver to a licensing authority within the time period specified by a licensing authority the licensee’s books, records and other documents including, but not limited to, those related to the conduct and management of lottery schemes and the use of proceeds from those lottery schemes and such other materials as required by a licensing authority for audit and investigation purposes.