Charitable Lottery Regulations in Ontario (Complete Breakdown 2025)

Ontario-based charitable gaming activities generate more than $96 million in the last fiscal year to support essential community projects in different regions of the province. The substantial contribution demonstrates the necessity of regulated charitable lotteries that properly distribute funds collected from raffles and other charitable gaming license events.

Organizations that want to raise funds through raffles encounter substantial challenges when trying to understand and comply with all charitable gaming lottery licenses and lottery regulations set by Ontario.

The article presents a detailed overview of Ontario's charitable lottery licensing system through its explanations of qualifying procedures, license implementation steps, and necessary post-license obligations. The guide details all essential regulations needed for complying with Alcohol and Gaming Commission of Ontario (AGCO) standards regardless of your choice between a draw, bingo, raffle lottery event only, or online raffle.

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What are the Charitable Lottery Regulations Ontario

Ontario, like every province or territory in Canada, has its own set of rules and regulations governing using lottery proceeds for charity. We've broken down Ontario's charitable and lottery licensing regulations for you and tried our best to explain some trickier parts.

If you're holding a charitable raffle or lottery in Ontario and need to know about raffle licenses or 50/50 draw rules, we’re here to help.

Before we get into the details, we just want to say that you can use Zeffy's zero-fee fundraising platform to sell tickets online in Ontario. We've written down the steps for holding an online raffle, but you should keep reading before you get started.

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The Importance of Charitable Lotteries in Ontario

Did you know that in 2022 alone, charitable lotteries in Ontario generated over $500 million for nonprofit organizations? These funds supported crucial initiatives, from healthcare to education and even emergency relief efforts. With such a significant impact on the community, it’s essential to ensure compliance with the Alcohol and Gaming Commission of Ontario (AGCO) regulations to maximize the benefits of fundraising efforts while staying within legal boundaries.

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What is a lottery?

Well, in classic Canadian style, the official definition of lottery event licensing varies ever so slightly from province to province. In Ontario, charitable and non-profit organizations' lottery event fundraising activities are regulated by the licensing authority, the Alcohol and Gaming Commission of Ontario (AGCO), and they define a lottery event as:

A charitable gaming lottery license is conducted by a charitable or religious organization or a nonprofit group with charitable objects and purposes. The policies apply to raffles, break-open tickets, ticket sales, bingo only, other charitable gaming events, charity, bingo halls, and one-time special occasion gaming events and bazaars run by these organizations.

In Ontario, both Municipalities and the AGCO (the province of Ontario charitable and lottery trust account and gaming license) are responsible for issuing charitable gaming lottery trust licenses and issuing lottery licenses and the lottery trust account and licenses to nonprofits.

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Is your charity or nonprofit eligible for a charitable lottery license?

In Ontario, all eligible organizations, charity and nonprofit organizations may raise funds eligible charitable give through provincially used lottery proceeds or municipally licensed lottery events, but how do you know if you're an eligible charitable give?

Well, to be eligible for a lottery alcohol and gaming commission or to be designated lottery trust account or receive a new license or eligible for a full lottery license or a lottery trust or gaming license in Ontario, you must

• have been in existence for at least one year,

• have a place of business in Ontario and its purpose must serve the province of Ontario, and

• have charitable objects and purposes that fall within one of the following:

• the relief of poverty

• the advancement of education

• the advancement of religion

• other charitable purposes beneficial to the community.

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Registration under the federal Income Tax Act as a charitable organization does not mean your nonprofit will automatically be eligible for a lottery license fee. And, you guessed it, eligibility is determined on a case-by-case basis.

If your nonprofit or charity only promotes the private interests of your members, you might not qualify. (Sports teams, unions or employee groups, social clubs, hobby groups, professional associations, political, government, or political lobby groups, lobbying or advocacy groups.)

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How to get an Ontario charitable lottery license.

First, read the first three chapters and the chapter(s) related to the lotteries that interest you in the Lottery Licensing Policy Manual.

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Next, apply for a get lottery gaming license?, from the AGCO if you're planing to get a lottery license fee or gaming commission license:

• Bingo, super jackpot bingo, and progressive bingo events with total prizes over $5,500.

• Raffle lotteries for total prizes over $50,000.

• Electronic raffles. (A raffle is ‘electronic' when computers are used to sell tickets, draw winners, and distribute the prizes.)

• Break-open tickets sold by organizations with a provincial mandate.

• Lotteries are held in conjunction with another gaming event, including break-open tickets at bingo events.

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Smaller prized lotteries only require a municipal lottery license and raffle license. (We found googling your municipality+charitable lottery license was the best way to get the full lottery license info you need.) But, if the raffle is electronic, you must be licensed through AGCO—regardless of the total value or prize value of the raffle prizes.

• Bingo events, with prize boards of up to $5,500.

• Media bingo events with prizes up to $5,500.

• Break open tickets for local organizations.

• Raffle lotteries for total prizes of $50,000 and under.

• Bazaar lotteries which include: wheels of fortune with a maximum bet of $2.00, raffles not exceeding $500, and bingo events up to $500.

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Identify the Kind of License You're Required to Get

For bingo events, super jackpot bingo, and progressive bingos that offer total prizes greater than $5,500, AGCO Bingo licenses are needed. It also includes raffle lotteries where the total prizes exceed $50,000 and electronic raffles where a computer sells break-open tickets, draws prizes, and distributes them. If a ticketed organization that has a provincial designation sells break-open tickets or if a lottery is conducted with other gaming activities, these types of gaming events also need AGCO licensing.

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Lottery license Fees.

Charitable gaming fees vary but are usually around 1-3% of total prize value, all applicable taxes and the total prize value and value of the prizes and license fee must be paid to the AGCO when submitting the charitable gaming and license fee and application.

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What you'll need to include in your application.

You'll find a list of the supporting documents you need to include with your application on the AGCO's Electronic Raffles page. There's nothing too surprising in the list of supporting documents, except that you need to include a sample ticket. You can visit the ticket requirements page for information on what to include on your raffle ticket.

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We've whipped up an example of a ticket with all the info in the right places.

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Side A:

Side B:

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Online ticket sales for nonprofits in Ontario.

Ontario has an Electronic Raffle Regulatory Framework that allows eligible nonprofit or charitable organizations to be licensed to conduct and manage online raffles in Ontario.

Electronic (online) lottery licensing raffles involve the lottery licensing, prize board, proceeds from lottery licensing, prize board, use of computers for the sale of tickets, the of open tickets, selection of winners, and the distribution of prizes in a licensed charity raffle.

There's a lot more useful info on the electronic lottery raffles page and it's surprisingly clear.

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Things to keep in mind when applying for a charity lottery in Ontario:

• Send your application a minimum of 45 days (6 weeks) before the beginning of ticket sales if you are a first time applicant. You can send it 30 days in advance if you have applied before.

• Follow the licensing policy manual and check the AGCO website for any updates.

• The AGCO suggests gaming suppliers, but other online platforms, like Zeffy, might be exactly what you're looking for. We are, after all, the only 100% free fundraising platform for nonprofits and have some pretty great how-to guides.

• The seller (you) and buyers of the raffle tickets must both be physically located in Ontario during the sale. You can state this in the rules of your lottery.

• You must have at least two members responsible for the lottery. They are responsible for preparing all documentation for the license and representing the organization to the AGCO.

• You must create a list of rules consistent with a raffle's terms and conditions. It needs to be approved by AGCO and available to draw participants.

• The lottery license number must be on all communication pieces related to your lottery event.

• The paperwork doesn't stop once you get your license:

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FAQ: Charitable Lottery Regulations in Ontario

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