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Raffles can be a fun and effective way for nonprofits in Canada to raise funds, but they come with complex legal requirements. Since raffles are considered a form of gambling, they're heavily regulated across the country.
If you're thinking about hosting a raffle for your charitable or religious organization, it's crucial to understand the rules. Getting it right keeps your nonprofit compliant and protects your reputation.
This article breaks down Canadian raffle laws in simple terms. Find out about regulations for each province and the do's and don'ts of raffle fundraising.
Overview of Canada raffle regulations at the federal level
In Canada, three bodies oversee raffle laws, each playing a specific role in regulating and enforcing lotteries or raffles. Together, they ensure raffles are conducted legally and fairly across different levels of governance.
The Competition Bureau of Canada oversees fair and transparent promotions, enforcing laws against deceptive marketing practices
The Criminal Code establishes the federal framework for gambling activities, defining illegal aspects and sets penalties for violations
Local municipalities handle the licensing and regulation of raffles within their jurisdictions, particularly for smaller raffles with lower prize values
Beyond these groups, each province and territory has regulations and licensing requirements for raffles and other games of chance.
Provincial regulations: what does your charitable organization need to know?
1. Ontario
To qualify for a raffle license in Ontario, you have to be a charitable or religious organization that has been operating for at least a year and is located in Ontario. Depending on the total value of the prizes to be awarded, you will need to apply for either a provincial or a municipal license.
Local municipalities issue licenses for raffles with total prize values under $50,000, while the Alcohol and Gaming Commission of Ontario issues licenses for raffles with total prize values over $50,000.
The Gaming Policy and Enforcement Branch (GPEB) regulates raffles in British Columbia. To be eligible for a raffle license, you have to operate as a nonprofit, primarily for religious or charitable purposes.
Your organization must provide services or programs that benefit the broader community, not just its members.
British Columbia has different types of licenses for raffles, including:
Class A: Raffles exceeding $20,000 in gross revenue
Class B: Raffles falling under $20,000
Class C: Gaming event or series of gaming events for provincially registered fairs and exhibitions
Class D: Gaming event or series of gaming events, including ticket raffles for which $5,000 or less in gross revenue is projected
In the Province of Quebec, the Régie des alcools, des courses et des jeux Québec (RACJ) provides a raffle lottery licence. To qualify, you must be a charitable or religious organization in the city with the purpose of:
Relieving suffering or poverty
Promoting education
Benefiting culture, arts, sports, or community interests
Raffle lotteries in Alberta are managed by the Alberta Gaming & Liquor Commission (AGLC). Licenses are limited to charity and religious organizations for fundraising purposes.
Your organization will first have to prove its eligibility by filling out an application process form. Once approved, you can then apply for the raffle license.
The province of Alberta sets the dividing line between small and large raffles at $10,000, each with its eligibility application.
Charitable, religious, and nonprofit community organizations can run legal raffles in Nova Scotia. They must apply for a raffle or lottery license at the Nova Scotia Alcohol and Gaming Division or Alcohol, Gaming, Fuel and Tobacco Division of Nova Scotia.
Depending on the total prize value, organizations need to obtain either a license for raffles with a total prize value over $4,000 or a permit for raffles with a total prize value under $4,000. All eligible organizations must specify on the application that all proceeds from the raffle ticket sales will be used for charitable purposes.
The Saskatchewan Liquor and Gaming Authority (SLGA) oversees the licensing and permitting process for all lottery activities in Saskatchewan, including raffles. It issues different raffle licences based on the total value of the prizes awarded in the event.
To qualify, organizations must prove they are eligible nonprofits and qualify under one of four charitable purposes:
In Newfoundland and Labrador, various types of nonprofit organizations can apply for a raffle licence, including religious groups, fire departments, scout groups, and other charitable organizations.
For a raffle with anticipated gross revenue of $5,000 or more, you must apply for a standard raffle license. You must request a community raffle license if the anticipated gross revenue is $5,000 or less.
For electronic raffles, the supplier of the electronic raffle system must be licensed under LGCA and tested by an accredited testing facility approved by LGCA.
For raffles with a total prize value of $5,000 or less, you have to fill out a one-page application form at any Access PEI location. For raffles with a total prize value of $5,000 or more, you have to fill out the two-page form and submit it to Financial and Consumer Services at least two weeks before starting ticket sales.
Religious, charitable, nonprofit organizations, amateur sports groups, agricultural fairs, and exhibitions are eligible to apply for a license or permit from the Department of Public Safety in New Brunswick to host a raffle.
If the total prize value is $500 or more, you will need to apply for a license. For raffles with a total prize value of less than $500, a permit will suffice to run the raffle legally.
The application must include a sample raffle ticket with the organization name, date and location of the draw, and contest rules and prizes.
Whether you're planning a small community raffle or a large charity draw, understanding federal and provincial regulations is crucial for ensuring that you raise funds legally and effectively. Remember, each province in Canada has its own set of lottery and raffle regulations.
As you plan your next raffle, use Zeffy's 100% free fundraising platform to generate and sell raffle tickets virtually and in person. Create customizable tickets and automatically keep track of sales through a centralized and user-friendly dashboard.
With no platform or processing fees, direct every dollar raised toward supporting your mission!
Only charitable and religious organizations that have been operating in Ontario for at least a year can run raffles with a license. Before applying for a raffle license, you must first apply for "charitable gaming eligibility" (CGE) to determine if your organization qualifies.
A license from the Alcohol and Gaming Commission of Ontario (AGCO) is required for 50/50 raffles with total prizes exceeding $50,000. Your local municipality can issue the license for smaller prizes.
The key difference between a raffle and a drawing is the element of chance and purpose. A raffle is a form of lottery in which participants purchase tickets for the opportunity to win a prize.
A drawing is when all names are placed in a hat; a single name is picked randomly and declared the winner. A drawing may or may not involve the purchase of tickets and is less regulated than a raffle, especially if there is no fee for entry. For a legal drawing, each participant is limited to purchasing a single chance, priced at $1 or less.
In Canada, running raffles on Facebook is illegal under the Criminal Code. While licensed charities and nonprofits can legally conduct raffles, the sale of raffle tickets through social media platforms is prohibited.
Even with a proper license, Facebook has its own policies that you have to follow. You can't use personal profiles or friend networks for raffles. Instead, you must host them on official Facebook Pages.
The only 100% free fundraising platform for nonprofits
Online charitable lotteries. 50/50 draws in Ontario. Eligibility for a nonprofit or charity lottery licence. Zeffy can help make sense of lotteries in Ontario.
Online charitable lotteries. 50/50 draws in Alberta. Eligibility for a nonprofit or charity lottery licence. Zeffy can help make sense of lotteries in Alberta.
Online charitable lotteries. 50/50 draws in Quebec. Eligibility for a nonprofit or charity lottery licence. Zeffy can help make sense of lotteries in Quebec.
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