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The House Always Wins: An Overview of the Licensing Process for Charitable Gaming Schemes

The House Always Wins: An Overview of the Licensing Process for Charitable Gaming Schemes<br>

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The House Always Wins: An Overview of the Licensing Process for Charitable Gaming Schemes

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  1. The House Always Wins: An Overview of the Licensing Process for Charitable Gaming Schemes http://www.edelsonlaw.ca/

  2. By Solomon Friedman  For Canadian charities, lotteries (including raffles, bingos and break-open tickets) are big business. In 2004, Ontarians spent more than $1.6 billion on charitable gaming ventures alone. Of that money, Ontario charities raised over $240 million. From those figures it is easy to see why lotteries are often a charity’s prime source of fundraising income.   That being said, Ontario charities must comply with a strict set of application and registration requirements in order to run a legal gaming scheme. Those who violate the law face harsh sanctions, including the possibility of criminal charges and, for the most egregious offenders, prison time.   http://www.edelsonlaw.ca/

  3. In Canada, the Criminal Code outlines the criminal offences associated with operating lotteries and other gaming schemes. Section 206 states that the following activities, among others, constitute prohibited gaming schemes:  Conducting a scheme wherein a patron pays (or promises to pay) a fee in exchange for the chance to win a sum greater than the original fee.   Disposing of any goods or merchandise in a game of chance.  Under this provision, anybody who operates an unauthorized gaming scheme is guilty of an indictable offence and can be imprisoned for up to two years.   http://www.edelsonlaw.ca/

  4. However, s. 207 provides for several exceptions to these general rules. One of these exceptions, and the provision most relevant to charities, states that a charitable or religious organization, pursuant to a license issued by the provincial government, may conduct and manage a lottery scheme in that province if the proceeds from the lottery scheme are used for a charitable or religious object.  Despite this seemingly broad authorization, charities are not permitted to operate any gaming scheme that involves dice games, three-card monte, punch board, coin table or bookmaking; in addition, any scheme conducted using a computer, video device or slot machine is similarly prohibited.  http://www.edelsonlaw.ca/

  5. Thank You http://www.edelsonlaw.ca/

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