Canada’s Criminal Code only permits charitable and religious organizations to conduct lottery schemes to raise funds pursuant to an issued lottery licence. Organizations must have a demonstrated charitable or religious mandate to qualify. The courts have determined that the term “charitable” refers to organizations, which provide programs for:
- the relief of poverty;
- the advancement of education;
- the advancement of religion; and
- other charitable purposes beneficial to the community.
The following are prerequisites to be considered eligible for a lottery licence:
- Organizations must have been in existence for at least one(1) year;
- Organizations must have a place of business in Ontario;
- Organizations’ primary purpose must be to provide charitable services in Ontario; and
- Organization must use the proceeds of any lottery scheme for objects or purposes which benefit Ontario residents.
The primary purposes of an organization are determined by considering:
- the mandate of the organization as set out in its incorporation documents or documents stating the organization’s objectives;
- the objectives of the organization as described in its application for licence; and
- the services which have actually been provided by the organization to the community.
