7.6.1. Provincial Licensing Policies

7.6.1 (A) Licences issued to Hall Charities Associations in non-pooling bingo halls

The following licensing policies apply to break open ticket licences issued by the Registrar to Hall Charities Associations in non-pooling bingo halls:

1. Where a Hall Charities Association (HCA) exists, only the HCA may apply to conduct a break open ticket event in conjunction with a licensed bingo event. Organizations must be members of the HCA in order to participate in the sale of tickets and share in the proceeds.
2. An HCA may use bona fide members of the licensee managing and conducting the bingo event to sell break open tickets at a bingo event, or utilize employees of the Operator of the bingo hall that are registered as Gaming Assistants under the Gaming Control Act, 1992 to sell the tickets.
3. An HCA that applies to sell break open tickets must comply with the following policies:

• The HCA must enter into a written agreement with the Operator of the bingo hall, outlining the roles and responsibilities of each party.
• The agreement with the Operator of the bingo hall must be signed by each organization that is a member of the HCA.
• Break open tickets ordered by an HCA may not be sold during any lottery event held by organizations that are not members of the HCA.
• A licence permitting an HCA to sell a variety of ticket types is valid for a period of up to five (5) years or until the licensee sells the number of boxes permitted under the licence, whichever is less.
• An HCA must submit a report of ticket sales every three (3) months.

7.6.1 (B) Provincial break open ticket (PBOT) licensing  policies

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.

Examples of programs ineligible to receive PBOT proceeds include:

• programs that supplement or are provided to other organizations that deliver programs and services to residents of Ontario; and
• competitions, contests and scholarship programs.

The following policies apply to PBOT licence applications:

1. To qualify for a PBOT licence:

• The organization’s provincial mandate must be stated in its governing documents.
• The organization must have a volunteer Board of Directors, with representation from all regions of the province.
• The organization must have the structure, financial resources and membership capacity to provide services province-wide, to all Ontario residents.
• The organization must have a demonstrated track record of providing direct services province-wide.
• The organization must have a presence (usually through local chapters or branches) that encompasses all regions of Ontario and allows it to provide direct services to individuals.
• A “presence” usually refers to an organization’s physical presence. For example, an organization may maintain a web site, but this alone is not enough to qualify it as having a province-wide presence for lottery licensing purposes. However, an organization’s programs may also be delivered to areas of the province where the organization has no physical presence. For example, if particular programs and services cannot be brought to the client, then the client may be brought to the program.

2. Local charities and PBOT licensees are permitted to sell BOTs from more than one sales location within a municipality or area covered by a given licensing authority, subject to any limits imposed by the licensing authority.
   
   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.

3. In an amalgamated municipality, the Registrar may permit an organization to maintain its status quo by selling tickets at each of its previous locations in the former municipalities, provided:

• circumstances and market conditions warrant multiple locations; and
• the licensee can justify the need.

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.

7.6.2. PROVINCIAL LICENSING PROCEDURES

7.6.2 (A) Licences issued by the Registrar

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).

1. The applicant must submit a fully completed application, on the form issued by the Registrar. The applicant must include all supporting materials with the application. The licensing authority may request additional information or documents.
   For first time applicants, please refer to the documents outlined in “7.1.0. Introduction”.
2. Cheques and money orders must be made payable to the Minister of Finance.
3. An eligible organization wishing to sell break open tickets at a designated fair or exhibition must obtain prior written approval from the board governing the event. In the approval letter the board must state that it has not, nor will it be applying for a break open ticket licence to be conducted and managed at its event, and it will not participate in ticket sales or share in the net proceeds of the break open ticket lottery. This letter of approval must be attached to the licence application.
4. The break open ticket licence must state the type(s) of ticket and, if applicable, the number of deals authorized to be sold under the licence.
5. An eligible organization must include on the application each type of ticket it would like to sell. If the licensee wishes to change the ticket type(s), add new ticket type(s) or sell additional deals, it must apply for an amendment.

6. The licensee must notify the Registrar in writing if it wishes to make any changes to the information on the original application. The licensee cannot make any changes to the conduct and management of ticket sales unless it has first received approval in writing.

7.6.2 (B) Licences issued to HCAs in a non-pooling bingo hall

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:

• a copy of the written agreement between the HCA and the Operator of the bingo hall;
• a list of all member organizations, with the names and signatures of an authorized representative from each, plus the signatures of two authorized representatives from the HCA;
• for first-time applicants, the HCA`s constitution and bylaws, including provisions for the handling of break open ticket sales, signed by at least three (3) current officers; and
• any changes to the HCA constitution and bylaws, signed by at least three (3) current officers.

7.6.2 (C) Provincial break open ticket (PBOT) licensing procedures

1. The eligible organization must submit a fully completed application, on the form issued by the Registrar, accompanied by the following items:

• complete copies of the applicant’s governing documents (letters patent, any supplementary letters patent, constitution, bylaws, charter, trust deed, memorandum or articles of association);
• a complete copy of the Notification of Registration letter from the Canada Revenue Agency (where registered) and any documentation that the Canada Revenue Agency has supplied to the organization (for example, any terms of registration or changes in status);
• complete copies of the two (2) most recent Registered Charity Information Returns (form T3010) and Public Information Returns as submitted to the Canada Revenue Agency;
• a copy of the organization’s verified financial statements for the two (2) previous fiscal years and a copy of the current operating budget;
• copies of the organization’s monthly bank statements for the last fiscal year and up to the current date;
• a copy of the organization’s last two (2) annual reports;
• a list of the organization’s local chapters or member/affiliated agencies and their addresses, including a detailed outline of the legal, administrative and financial relationships between the applicant and all chapters or member/affiliated agencies;
• a list of the organization’s Board of Directors and the cities in which they reside;
• a detailed outline of the programs and services that the organization provides to residents of Ontario, how these programs and services are delivered across the province and the costs incurred in delivering the programs and services;
• an outline of sales tracking procedures, including a list of ticket sales locations and their respective registration numbers, noting the municipality for each location;
• a list of bona fide members who will be assisting with the break open ticket administration/sales; and
• the type and style or styles of tickets to be ordered under the licence (no ticket samples are required).

2. If an application is incomplete, the Registrar will send the applicant a letter outlining the deficiencies in the application and requesting the required documents.
3. Prior to selling tickets in a municipality, the organization must notify the municipality of its intention to sell break open tickets at a specific location and provide it with a copy of the licence.
4. Once a PBOT licence has been issued, the licensee must provide the following information to the Registrar:

• break open ticket lottery reports;
• when changes occur, an up-to-date list of all locations where the licensee sells or intends to sell break open tickets;
• an annual, up-to-date list of the Board of Directors;
• any changes to governing documents as they occur; and
• verified or audited annual financial statements.

5. A licensee must pay the prescribed PBOT licence fee. The amount owed is based on the tickets ordered in the previous quarter. The cheque for licence fees must be made payable to the Minister of Finance.

7.6.3. ADMINISTRATIVE RESPONSIBILITIES OF HCA IN A NON-POOLING BINGO HALL

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.

7.6.3 (A) Duties an HCA must perform

• supervising both hall sales and cash counting;
• determining and purchasing the types and styles of tickets to be sold;
• completing and filing the lottery reports;
• maintaining a designated trust account to administer the BOT lottery;
• keeping financial records;
• distributing proceeds to the HCA members on a pro rata basis; and
• advertising, marketing and promoting ticket sales.