Charitable Lottery Regulations in Ontario (Complete Breakdown 2026)

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What is a charitable lottery in Ontario?

The Alcohol and Gaming Commission of Ontario (AGCO) regulates all charitable gaming in the province. It defines a lottery event as any game of chance conducted by a charitable or religious organization, or a nonprofit with charitable objects and purposes.

That covers raffles, 50/50 draws, bingo, break-open tickets, bazaar lotteries, and online (electronic) raffles. Both the AGCO and municipal governments issue licenses, but which one you need depends on your prize value and lottery type.

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Is your organization eligible?

Not every nonprofit qualifies for a charitable lottery license in Ontario. Here's what you need:

• Your organization must have been in existence for at least one year.
• You must have a place of business in Ontario.
• Your purpose must serve Ontario residents.
• Your charitable objects must fall into one of these categories:
  • Lutte contre la pauvreté
  • Advancement of education
  • Promotion de la religion
  • Other charitable purposes that benefit the community

Federal registration as a charity under the Income Tax Act doesn't automatically make you eligible. The AGCO evaluates each application individually.

If your organization primarily serves the private interests of its members, you likely won't qualify. That includes sports teams, social clubs, hobby groups, unions, professional associations, and political or advocacy groups.

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AGCO license vs. municipal license: which do you need?

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One rule applies to both: if your raffle is electronic (meaning computers are used to sell tickets, select winners, or distribute prizes), you must get an AGCO license — no matter the prize value.

For municipal license details, search your municipality's name plus "charitable lottery license." Requirements vary across Ontario.

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How to apply for an Ontario charitable lottery license

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Step 1: Read the policy manual

Start with the Lottery Licensing Policy Manual. Read chapters one through three, then read the chapter that applies to your lottery type.

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Step 2: Gather your supporting documents

The AGCO's Electronic Raffles page lists the supporting documents required. You'll generally need:

• Proof of your organization's charitable status and history
• A description of your lottery event and prize structure
• Your proposed rules for the lottery
• A sample raffle ticket

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Step 3: Design a compliant raffle ticket

Your ticket must include specific information on both sides. Here's an example that meets AGCO requirements.

Côté A :

Face B :

Visit the AGCO ticket requirements page for the full list. Also read our guide on how to make raffle tickets.

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Step 4: Submit your application

Submit through the AGCO's online application portal. Pay the license fee at the time of submission. Fees are typically 1–3% of the total prize value.

Application timeline:

• First-time applicants: submit at least 45 days before ticket sales begin
• Previous applicants: submit at least 30 days before ticket sales begin

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Online raffle rules for Ontario nonprofits

Ontario's Electronic Raffle Regulatory Framework allows licensed nonprofits to run online raffles. Here's what you need to know:

• All electronic raffles require an AGCO license, regardless of prize value.
• "Electronic" means computers are used to sell tickets, select winners, or distribute prizes.
• Both the seller and the buyer must be physically located in Ontario at the time of sale.
• The AGCO's electronic raffles page has detailed requirements.

Zeffy's zero-fee platform supports online raffle ticket sales for Ontario nonprofits. We've written a full guide on how to run an online raffle.

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How lottery proceeds must be used

Proceeds must:

• Benefit Ontario residents
• Go toward your organization's stated charitable purposes as approved in your license application
• Be used in a manner consistent with the objects described when you applied

Proceeds cannot:

• Be directed to causes or organizations outside Ontario
• Benefit the private interests of your members
• Be used for operating expenses beyond what the AGCO approves

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Post-license obligations

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Financial record-keeping

You must keep detailed financial records for every lottery you run: all ticket sales revenue, prize payouts, expenses, net proceeds and distribution. The AGCO requires records for a minimum of seven years.

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Trust account management

Lottery proceeds must be deposited into a dedicated lottery trust account. You can't co-mingle lottery funds with your organization's general operating account. Two designated members must manage the trust account.

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Exigences en matière de rapports

After your lottery event closes, submit a financial report to the AGCO (or your municipality) covering: total ticket sales, prizes awarded, expenses, net proceeds, and how proceeds were used.

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AGCO audits

The AGCO can audit any licensed organization at any time. Keep your records accurate, organized, and accessible.

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Other ongoing requirements

• Display your lottery license number on all promotional materials
• Make approved lottery rules available to all participants
• Ensure at least two designated members manage the lottery
• Follow the raffle licence terms and conditions

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Key rules to keep in mind

• Your lottery license number must appear on all advertising
• Your lottery rules must be approved by the AGCO and available to participants
• At least two designated members must manage the lottery
• Buyers and sellers must both be physically in Ontario during transactions
• Unclaimed prizes have specific rules — check your license terms

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Running your raffle with Zeffy

Zeffy is the only 100% free fundraising platform for nonprofits. Zero fees on ticket sales, zero platform fees, zero transaction fees. Every dollar goes to your cause.

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Helpful resources

• Alcohol and Gaming Commission of Ontario (AGCO)
• AGCO Online Application Portal
• Manuel de politique d'octroi de licences de loterie
• LLPM Updates Page
• Ontario Raffle Licence Terms and Conditions
• Ticket Requirements
• Electronic Raffles
• Charitable Gaming Fees

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Charitable lottery regulations in other provinces

• Règlement sur les loteries de bienfaisance en Alberta
• Réglementation des loteries de bienfaisance en Colombie-Britannique
• Règlement sur les loteries de bienfaisance au Manitoba
• Règlement sur les loteries de bienfaisance au Nouveau-Brunswick
• Règlement sur les loteries de bienfaisance à Terre-Neuve-et-Labrador
• Règlement sur les loteries de bienfaisance en Nouvelle-Écosse
• Réglementation des loteries de bienfaisance à l'Î.-P.-É.
• Règlement sur les loteries de bienfaisance au Québec
• Règlement sur les loteries de bienfaisance en Saskatchewan

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FAQ

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