5.16.1. Raffle Lottery Prizes

5.16.1 (A) Houses as prizes

In addition to the general raffle licensing policies, the following policies apply to house raffle applications.

  1. As a prize, a licensee may only offer a new home if the home is:

» covered by the Ontario New Homes Warranties Plan Act;

» ready for occupancy prior to the draw; and

» situated in the Province of Ontario.

  1. The following additional information is required for house raffle applications:
  • an accepted Offer to Purchase/Agreement of Purchase and Sale, including any addenda agreed to by the builder;
  • if a house is being donated, a legal document is required showing the terms of the donation;
  • a statement of whether or not the house has been completed and if the organization has access to it for the purpose of selling tickets;
  • if the house has not been completed: the anticipated completion date, which must be a date before the date set for the draw for that house;
  • the closing date for the transfer to the winner;
  • the builder’s addendum or appendix with a complete description of the home, site plan and all items included or excluded;
  • proof that the house is insured against fire, vandalism, etc.; and
  • a statement of who (the donor or licensee, not the winner) will be responsible for other fees incurred, such as legal and title search fees, land transfer tax, retail sales tax and municipal occupancy fees.
  1. Licensees offering homes or land as prizes must submit proof of title/deed transfers to the prizewinners as part of the financial report for the lottery.

5.16.1 (B) Motor vehicles as prizes

In addition to the general raffle lottery policies, the following policies apply to all motor vehicle raffle applications:

  • The licensee must award the vehicle free of any hidden costs (such as taxes, pre-delivery inspection [PDI] costs and dealer’s fees). This fact must be advertised. The licensee may choose to make the winner responsible for vehicle licence and insurance costs, provided these conditions are fully disclosed.
  • The licensee may only award new vehicles, obtained through a registered dealer in Ontario, as prizes for raffle lotteries (except as detailed below). The dealer must be registered through the Ontario Motor Vehicle Industry Council.
  • The licensee may not award leased or rental cars as prizes.
  • The licensee must inform the winner of the point of delivery of the prize(s). The point of delivery must be in Ontario.
  • The licence application must include a purchase agreement or a letter from the dealer indicating the type, model, and options of the car to be awarded and the full retail value of the car, including taxes, freight, PDI costs, duty and any other applicable costs.

5.16.1 (b) (i) Antique motor vehicles as prizes

An organization may offer an antique motor vehicle as a prize in a licensed raffle lottery, provided the vehicle meets the requirements set by the Ministry of Transportation of Ontario (MTO) to be qualified for historic motor vehicle licence plates.

In the interests of consumer protection and to ensure that any advertising represents the true full retail value of the items offered, these types of prizes will be allowed only where the following documents accompany the application:

  • a certificate from two independent certified antique appraisers listing the appraised value of the automobile (value based on the lower appraisal) and attesting to its status as an antique automobile;
  • proof that the item is insured against theft, fire, and so on;
  • a copy of the ownership certificate;
  • certification that there are no liens on the automobile;
  • a safety certificate; and
  • a statement, signed by the applicant’s authorized signing officers, that the applicant will pay any taxes on the transfer of title to the prizewinner.

5.16.1 (C) Ontario Lottery and Gaming Corporation tickets as prizes

Raffle lottery licensees may award Ontario Lottery and Gaming Corporation (OLG) tickets as secondary prizes for raffle lottery events provided that the following conditions are met:

  • Any raffle advertising that includes OLG product names or logos must be directed to the OLG for approval. A letter of approval from the OLG must be submitted to the licensing authority.
  • The OLG logo must be no more than half the size of the licensee’s logo.
  • The prize value of OLG tickets must be based on the face value (purchase price) of the tickets. The maximum value of these tickets must not exceed five (5) per cent of the prize board for the licensed lottery event.

5.16.1 (D) Antiques and art objects as prizes

Occasionally, organizations conducting raffle lotteries offer antiques or art objects as the main prize for their event. In the interests of consumer protection and to ensure that any advertising represents the true market value of the item(s) offered, these types of prizes will be allowed only if the following documents accompany the application:

  • a certificate from two independent, certified art/antique appraisers listing the appraised value of the object (value based on the lower appraisal);
  • proof that the item is insured; and
  • a statement of ownership.

5.16.1 (E) Vacations as prizes

Organizations conducting raffle lotteries may offer vacations as prizes, provided the travel agency is registered with the Travel Industry Council of Ontario (TICO). 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. The summary of the vacation package offered must include a full description of all services, including hotel accommodations, meals, complete travel arrangements including points of departure and entry (which must be in Ontario), limousine services, airline tickets, carriers and boat cruises.

5.16.1 (F) Liquor as prizes

Liquor may be awarded as a prize for a raffle lottery provided that the organization conducting the raffle lottery ensures that:

  • any such prize is purchased from the Liquor Control Board of Ontario (LCBO), Brewers Retail (The Beer Store) or liquor manufacturer’s retail store;
  • any such prize is awarded only to persons 19 years of age or older; and that
  • this condition is disclosed to all ticket purchasers.

5.16.1 (G) Firearms as prizes

Prohibited and restricted firearms as defined in the Criminal Code (Canada) must not be used as prizes for raffle lotteries.

Licensees may only use non-restricted firearms (long guns) such as shotguns and rifles, which are reasonably used for hunting and sporting purposes, as prizes for raffle lotteries provided the following conditions are met:

  • The licensee must ensure that the non-restricted firearm is retained and controlled by an individual who possesses the appropriate firearms licence for the purpose of transferring the non-restricted firearm.
  • The non-restricted firearm must be properly registered. The transfer of the non-restricted firearm to the prizewinner must only occur after the prizewinner can produce a valid firearm Possession and Acquisition Licence, at which time the non-restricted firearm registration must be transferred to the prizewinner.
  • The prizewinner has one year from the date of the draw in which to claim the prize and transfer registration of the firearm into the winner’s name.
  • In the event that the prizewinner does not obtain the required firearm licence, claim the prize and transfer registration of the firearm into the winner’s name within one year, the firearm or monies equivalent to the fair market value of the firearm must be donated to a beneficiary approved by the licensing authority.
  • The non-restricted firearm must be purchased or donated through an authorized firearms dealer in the province of Ontario.
  • The licensee must have the conditions for receiving the prize printed on the ticket and fully disclosed to all raffle ticket purchasers.

5.16.1 (H) Crossbows as prizes

Prohibited crossbows as defined in the Criminal Code (Canada) must not be used as prizes for raffle lotteries.

Licensees may only use crossbows that are reasonably used for hunting and sporting purposes as prizes for raffle lotteries. The crossbows must be purchased or donated through an authorized dealer in the province of Ontario.