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.
Table of contents
- Overview of Canadian raffle regulations at the federal level
- Provincial regulations: what does your charitable organization need to know?
- Final thoughts on Canadian laws for raffles
- FAQs on Canada raffle laws
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?
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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.
2. British Columbia
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
3. Quebec
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
4. Alberta
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.
5. Nova Scotia
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.
6. Saskatchewan
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:
- Relief of poverty
- Advancement of religion
- Enhancement of education
- Greater community benefits
7. Newfoundland and Labrador
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.
A designated representative from each eligible organization can apply for the lottery raffle license from the Department of Digital Government and Service NL. You can apply virtually using the online ticket lottery license application and will be required to submit a sample ticket.
8. Manitoba
The Liquor, Gaming, and Cannabis Authority of Manitoba permits charitable and religious organizations to host different raffles.
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.
9. Prince Edward Island
Similar to Saskatchewan, Prince Edward Island issues raffle licenses to nonprofits whose purposes align with religion, education, poverty relief, and community.
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.
10. New Brunswick
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.
Final thoughts on Canadian laws for raffles
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.
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