Ontario Removes Seller Commission Cap for Paper Raffles, Revokes Ban on Catch the Ace Paper Lotteries

The Alcohol and Gaming Commission of Ontario (AGCO) announced updates to its lottery policies, resulting in the removal of the cap on seller commission for Paper Raffles and the revocation of a ban on Catch the Ace paper lotteries.

AGCO Adopts Outcomes-Based Approach to Reducing the Sector’s Burdens

The AGCO’s latest changes seek to align charitable lottery products by allowing charities to negotiate commissions directly with sellers. Thanks to this, charities will be able to negotiate better commission rates, as long as they are reasonable and tied to the cost of the service provided. Charity organizations will thus have greater decision-making flexibility when it comes to raising funds.  

According to the AGCO, the latest changes exemplify its commitment to following an “outcomes-based” regulatory approach to reduce the burdens for the charitable gaming sector.

The AGCO reminded that charities must still receive approval for additional expenses and retain receipts for seller commission paid. While licensing authorities will not require charities to submit documentation as part of the application process, charities will remain subject to compliance audits. In addition to that, charities should remember their obligations under the Criminal Code.

AGCO Amends Rules to Revoke Ban on Catch the Ace Paper Lotteries

In the meantime, the ACGO amended the section of its Lottery Licensing Policy Manual that prohibited ticket seller sales commissions for Catch the Ace events.

Changes to the Raffle Licence Terms and Conditions and Media Bingo Terms and Conditions have also been made to reflect the AGCO’s latest policies.

The AGCO applied the same outcomes-based approach to this matter to align seller commission rules for lottery products in the Charitable Gaming Framework.

AGCO Revoked Several Licenses

In other news, the AGCO recently revoked the lottery retailer registrations of several businesses in the Greater Toronto Area after discovering they were offering illegal electronic gambling machines branded as Prime Slot.

The AGCO explained that these devices are very similar to traditional slots, with the exception that their operators claimed that they were games of skill. As a result, Prime Slot machines found their way to convenience stores and other venues where gaming machines are typically not permitted.

This came following multiple statements that the AGCO planned to tighten its grip on the gaming scene in an effort to decrease the market share of illegal gambling.