Lottery Licensing

What is a lottery?

A lottery is defined as any event that has the following three components:

1. A prize;
2. A chance (to win a prize); and
3. A consideration or a fee to participate.

The Alcohol and Gaming Commission (AGCO) is responsible for administering lottery licensing in the Province of Ontario. Both municipalities and the AGCO are responsible for issuing lottery licences to eligible charitable and religious organizations. An overview of Charitable Lottery Licensing can be found on the AGCO's website.

The Township is the licensing authority for:

• Bingo events, including table board bingo, with prize boards of up to $5,500;
• Media Bingo events with prizes up to $5,500;
• Break Open Tickets (BOTs) for local organizations;
• Raffle lotteries (including 50/50) for total prizes of $50,000 and under; and
• Bazaar lotteries which include: wheels of fortune with a maximum bet of $2.00, raffles not exceeding $500, and bingo events up to $500.

For any of the above lotteries occurring outside of the Township of Woolwich, the municipality where the lottery is taking place is the licensing authority.

Provincial Lottery Licensing

The AGCO is the licensing authority for:

• bingo events (i.e., Special Bingo, Monster Bingo) with a prize board over $5,500;
• super jackpot bingo events;
• progressive bingo game events and loonie progressive games;
• special occasion gaming event
• raffle lotteries for total prizes over $50,000;
• electronic raffles;
• break open tickets sold by organizations with a provincial mandate;
• lotteries held in conjunction with another gaming event, including break open tickets at bingo events;
• all lottery schemes conducted in unorganized territories; and
• lottery schemes at designated fairs or exhibitions.

For more information, please visit the AGCO's Charitable Lottery Licensing Overview webpage.

Are You Eligible?

Lottery Licences can only be issued to eligible charitable and religious organizations who wish to raise funds to support charitable purposes. 

 An organization must be deemed eligible before their application can be reviewed. First-time lottery license applicants for Township-issued licenses must complete the eligibility review process. Please note that the time required to conduct an eligibility review is not included in the fifteen (15) business day processing timeline for lottery license applications.

The following documents and/or information are required so that eligibility can be reviewed:

• A full and complete Township Eligibility Review Form
• Constituting documents, bylaws  
• Letters patent (if available)  
• Budget, financial statement  
• Board of directors  
• Bona fide members list.  

For more information on eligibility requirements, please visit the AGCO's Charitable Lottery Licensing Overview webpage and review relevant sections of the AGCO's Lottery Licensing Policy Manual (LLPM).

Please Note: Eligibility requirements are set by the AGCO, not the Township of Woolwich.

What/Who is NOT eligible for a lottery license?

Examples of who/what is NOT eligible:

• Adult recreation leagues/teams/ hobby groups
• Wedding, Stag/Buck ‘n Doe events
• For-profit businesses/organizations
• An organization that promotes private benefits to a restricted class of members
• Organizations that do not have a charitable object/purpose
• Professional associations, unions and employee groups, except those set up to carry out charitable activities
• Elected representative groups, including municipal, regional, provincial and federal governments
• Government agencies or bodies
• Political lobby groups
• Political parties
  
• Individuals

For a complete list, visit Overview: Ineligible Organizations | Alcohol and Gaming Commission of Ontario

Application Timeline

The Township requires a minimum of fifteen (15) full business days from receipt of a full and complete application package to process all applications for lottery events licensed by the Township. Applicants are welcome to contact the Licensing Officer to request a review of the application package in advance of submission. 

First-Time Applicants

First time lottery license applicants with the Township will be required to undergo an Eligibility Review process (see Eligibility Criteria & Process section above). The Eligibility Review is not included in the application timeline, so ensure that you review the documents you need to submit for eligibility and the time needed to prepare/submit them.

Review Terms & Conditions First

Township-issued lottery license applicants can use the application form links below. Before completing an application, ensure you review the terms and conditions, standards, directives, and other regulations for each lottery scheme found in the AGCO's LLPM, in addition to those listed below:

• Bazaar
• Bingo
• Regular and Monster Bingo
• Media Bingo
• Table Board Bingo
• Break Open Ticket
• Raffles

Previous Lottery Licenses - Reporting

The Township cannot process a new lottery license application until all reporting requirements for the organization's previous licenses have been satisfied. Please ensure you factor the report processing timeline in relation to submitting your next lottery license application.

Lottery License Application Forms

• Raffle Lottery Application Form
• Blanket Raffle Application Form
• Bingo Lottery Application Form
• Break Open Ticket Licence Application
• Bazaar Lottery Application Form

Reporting

Licensed charitable or religious organizations must fulfill all prescribed reporting requirements outlined in the LLPM, the overall Lottery Licence Terms and Conditions, and all terms and condition specific to each lottery scheme.

The Township cannot process a new lottery licence application until all reporting requirements for the organization's previous licence have been satisfied. 

Annual Verified Financial Statements

The terms and conditions of all charitable lottery licences require each licensed organizations to provide the licensing authority with a verified financial statement within 180 days of the organization's year-end each year.

The type of financial review required depends upon the licensee's gross annual revenues from all sources:

• Licensees that receive less than $250,000 in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook.
• Licensees that receive $250,000 or more in gross annual revenues must prepare financial statements in accordance with the standards set out in the CPA Canada Handbook and which have been audited by a public accountant.

With prior approval from the licensing authority, licensees may use proceeds from the lottery to pay the expenses of the financial statements and reports required by this section.

Requirements for providing annual verified financial statements can be found in the AGCO's Lottery Licensing Policy Manual and in the terms and conditions for each lottery scheme.

Designated Lottery Trust Accounts

In order to be eligible for lottery licensing, organizations are required to possess a Canadian dollar lottery trust account in which to deposit all proceeds derived from lottery events. The account must be designated as a trust account by the financial institution in which it is held. Organizations without a designated lottery trust account cannot conduct charitable lottery events.

The Terms and Conditions for each type of lottery event set out specific accounting requirements for journals, monthly summaries, and bank reconciliation. To view the Terms and Conditions for each lottery scheme, please see the Reporting section below.

For more information on designated lottery trust account requirements, please visit the AGCO's Trust Accounts webpage and review the relevant sections of the LLPM.

Review Before You Apply

A common mistake that lottery applicants make is planning for and operating the lottery without first thoroughly reviewing the terms & conditions and reporting requirements. This often means that the applicants don't have the information their reporting requires, or end up with a lottery process that doesn't meet the rules set by the AGCO.

It is extremely important for lottery license applicants to review all resources before completing the license application. This will save applicants a lot of time and potential issues, as they can set up the lottery to make reporting seamless and the lottery itself to run within the rules.

Common Mistakes & How to Avoid Them

Raffle Tickets

Many organizers make the mistake of going to a store and buying wheels of numbered tickets to use for their 50/50 or other raffles. This usually results in using tickets that do not meet the AGCO's requirements, and often makes it extremely difficult for lottery organizers to do their reporting. 

To avoid this, always review the terms & conditions of the type of lottery you're applying for, before you have purchased or designed anything, especially tickets. Pay close attention to what information is required on tickets, how raffle revenues and winners need to be recorded, and what kind of ticket tracking processes are needed.

Bulk Bank Deposits

This is a very common mistake for raffle license holders who do multiple draws within a time period (such as regular 50/50 draws). Often, organizers wait until they have done several draws before making a bank deposit. Without detailed, accurate recording processes, this can lead to reporting difficulties later on.

To avoid this, work with your bank to get deposit box access and plan to make a deposit after each draw. This will create a per-draw revenue record on your monthly bank statements, which will make for smoother and more accurate reporting.

Administrative Expenses

Lotteries can incur administrative expenses, but sometimes organizers make the mistake of not properly tracking or documenting those expenses. To avoid any issues with expenses, especially at reporting time, ensure that all expenses directly related to running the lottery are tracked and receipts are kept. Avoid reimbursing with cash - cheques provide a much better tracking mechanism.