The Alcohol and Gaming Commission of Ontario (AGCO) has introduced significant updates to its charitable lottery licensing policies, effective January 8, 2025.
These changes aim to boost innovation and reduce administrative burdens in the Ontario charitable gaming sector.
Building on previous updates in 2024, the latest amendments reflect AGCO’s commitment to supporting charitable organizations while ensuring consumer protection and regulatory compliance.
New opportunities for Ontario charitable gaming
The January 2025 updates bring three notable changes to the charitable lottery licensing framework.
The first change allows charities to offer subscription-based electronic raffle ticket sales with automatic billing. This option lets players subscribe for regular entries, simplifying the process for participants who wish to contribute regularly to charitable causes.
To protect consumers, several safeguards have been introduced. Subscriptions cannot be the default participation method; players must actively opt in to enroll.
Additionally, charities must provide clear and transparent billing policies, notify players before any automatic payments are processed, and offer easily accessible opt-out options. These details must be outlined in the Rules of Play submitted to the AGCO.
This update provides charities with an innovative tool to improve engagement with their donor base while simplifying the administrative process of raffle ticket sales.
Single Number Multi-Chance e-Raffle
The second update introduces the Single Number Multi-Chance e-Raffle feature. This innovative solution allows a single raffle number to represent multiple entries in electronic raffles. For instance, if a player purchases 500 entries, their assigned number will be entered into the draw 500 times.
This approach simplifies the ticketing process while maintaining fairness and transparency.
To comply with this feature, charities must ensure that the number of times the ticket is entered into the draw is clearly displayed on both the player’s ticket and the charity’s records.
Additionally, rules must be updated to reflect the use of this feature. This change streamlines charities’ operations and enhances the player experience by making raffle participation more straightforward and efficient.
BOT+ Charitable Gaming
The third update, known as the BOT+ Charitable Gaming Opportunity, permits a combination of a traditional Break Open Ticket (BOT) with up to two other games—either another BOT or a raffle—on a single ticket.
This change provides charities with greater flexibility and creative opportunities to engage participants.
Charities must obtain individual licenses for each game included on a BOT+ ticket and adhere to each type of game’s specific terms and conditions. The new framework guarantees proper prize distribution and compliance with regulatory standards.
By introducing this update, AGCO enables charitable organizations to diversify their gaming offerings and attract a broader audience.
Recent ACGO charity gaming updates
The January 2025 updates build on the previous changes to Ontario charitable gaming policies.
In September 2024, the AGCO revised its 50/50 raffle policies to allow for “Split the Pot” raffles. Under this framework, charities can now divide the prize pot among multiple winners instead of a single winner. This adjustment offers more flexibility and encourages broader participation.
When adopting this model, charities must clearly outline how prizes will be divided in their Rules of Play and apply for specific licensing. This policy change expands fundraising opportunities while maintaining transparency for participants.
Updates to “Split the Pot” raffles
The September 2024 update was a significant step forward for the Ontario charitable gaming sector, allowing 50/50 raffles to feature multiple winners.
Previously, the framework permitted only a single winner to take home half the proceeds from gross ticket sales. With the introduction of “Split the Pot” raffles, charities now have the flexibility to divide the prize pool among several winners. This adjustment makes these raffles more appealing to participants by increasing the chances of winning and potentially encouraging higher ticket sales.
To implement this change, charities must explicitly outline the prize distribution in their Rules of Play and submit this information during the application process for a raffle license.
Tickets for “Split the Pot” raffles can now be sold wherever paper-based and electronic tickets are permitted in Ontario. This policy improves charities’ fundraising potential and fosters transparency and trust among participants, ensuring that all prize distribution details are clear and accessible.
Charities working together to organize larger 50/50 raffles can also benefit from collaborative opportunities, which may attract a broader donor base and increase overall proceeds.
Youth sports age requirement
The October 2024 policy revision addressed age requirements for youth amateur sports organizations applying for Ontario charitable gaming licenses.
Previously, eligibility required that a majority of players on a team be under the age of 18. However, this rule excluded certain teams with slightly older players, potentially limiting fundraising opportunities for these organizations.
The updated policy now stipulates that all players must be 21 or younger at the start of the sporting season. This change reflects the diverse age ranges often seen in youth sports and ensures more teams can access funding through charitable gaming.
In addition to this age requirement adjustment, the AGCO retained all other eligibility criteria, such as the requirement that applications be submitted by a relevant sports association and the mandate that the organization operate on a not-for-profit basis.
This update highlights the AGCO’s ongoing commitment to supporting youth sports while ensuring compliance with Ontario’s gaming regulations.
By aligning policies with the realities of youth sports teams, the AGCO has opened new doors for amateur athletes and their organizations to benefit from charitable lottery proceeds.
Understanding Charitable Gaming Under the AGCO
The AGCO oversees all Ontario charitable gaming activities, ensuring all of it comply with provincial laws and regulations.
Charitable gaming includes raffles, bingo, break-open tickets, and other lottery-style fundraising events. These activities provide essential revenue for non-profit organizations and support initiatives such as healthcare, education, and community services.
Eligibility
To participate in charitable gaming, organizations must meet strict eligibility criteria. Non-profits must demonstrate their charitable purpose and outline how proceeds will be used. Applications are reviewed by the AGCO or local municipalities, depending on the type of gaming activity.
Eligible organizations include those focused on advancing education, relieving poverty, or benefiting the community in other significant ways. This rigorous vetting process assures that Ontario charitable gaming activities align with their intended purposes and contribute meaningfully to the community.
Licensing and Compliance
Charities must obtain a license for each gaming activity they conduct. The AGCO provides detailed guidance through its Lottery Licensing Policy Manual (LLPM), which outlines licensing, operations, and reporting requirements.
Adherence to these guidelines provides transparency and accountability in charitable gaming. By following these standards, charities comply with regulatory requirements and build trust with their donors and participants.
Technical Standards for e-Raffles
The AGCO has established minimum technical standards for electronic raffles to guarantee fairness and security. These standards include guidelines for ticket issuance, draw mechanics, and data protection. Charities must comply with these standards to maintain their licensing status.
These technical measures are crucial in safeguarding the integrity of charitable gaming activities and protecting participants from potential fraud or misuse.
Collaborative Fundraising Opportunities
The AGCO encourages collaboration among charities to maximize fundraising efforts. Organizations can expand their donor base, offer larger prizes, and share operational resources by working together.
For instance, joint raffles allow multiple charities to pool resources and reach a wider audience, enhancing the overall impact of their fundraising campaigns.
This collaborative approach increases efficiency and encourages unity among charitable organizations working toward common goals.
Impact of Recent Policy Changes
The recent updates to Ontario charitable gaming policies have been well-received by stakeholders, who view them as steps toward greater flexibility and innovation. Features like e-raffle subscriptions and multi-chance tickets simplify charities’ operations while providing players with convenient and engaging options.
Similarly, introducing BOT+ tickets and revised 50/50 raffle policies expands non-profit fundraising possibilities. These updates demonstrate the AGCO’s proactive approach to addressing the challenges and opportunities in the charitable gaming sector.
The changes to youth sports organization eligibility highlight AGCO’s responsiveness to community needs. They ensure that a broader range of teams can benefit from charitable gaming revenues.
By aligning policies with the evolving landscape of youth sports, the commission supports developing programs that promote physical activity and teamwork among young people.
