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A Nonprofit’s Guide to Canada Raffle Laws [2025] & Free Raffle Planning Checklist
March 20, 2025
Raffles can be a fun and effective way for nonprofits in Canada to raise funds, but they have complex legal requirements. Since most raffle ideas are considered a form of gambling, they are heavily regulated across the country.
If you're thinking about hosting a raffle you will need to be registered as a charity with the Canada Revenue Agency and understand the licensing requirements.
This article breaks down Canadian raffle laws in simple terms. Find out about regulations for each province and the do's and don'ts of raffle fundraising.
Raffles and drawings are considered promotional contests by the Government of Canada, encompassing any contest, lottery, and game of chance or skill. Each of these gaming events comes with its own regulations, purpose, and participation rules.
Raffles: A type of lottery requiring ticket purchases for a chance to win. Provincial gaming authorities mandate licensing and regulate ticket prices, prize values, and fund usage.
Drawings: A sweepstakes-style contest where winners are randomly selected without payment. While less regulated, compliance with consumer protection laws still applies.
Depending on the total value of the prizes to be awarded, you must apply for either a provincial or a municipal license. Under $50,000 will be local municipalities, and over would be the AGCO.
Eligibility requirements
A license from the Alcohol and Gaming Commission requires a charitable or religious organization to be in operation for at least a year in Ontario.
Types of raffles permissible
50/50 raffles
Elimination draws
Calendar draws
Electronic raffles
Catch the Ace
Application processes
1. Prepare your application with the following materials ready
3. Wait for the decision, which can take about 45 days
Raffle laws
Two adult members (18+) must oversee the raffle.
Rules must be pre-approved and available to ticket buyers.
The raffle must proceed even if not all tickets sold.
The winner selection method must match the approved application.
Ticket quantity must align with the approved application.
Tickets must be numbered and include the required details.
Sample tickets must be provided upon request.
Only Ontario residents 18+ can purchase tickets.
Prizes awarded require approval.
Penalties for non-compliance
The AGCO penalizes non-compliance through various methods, from education and verbal warnings to monetary penalties and suspension or revocation of a raffle license.
Proceeds must go to approved charitable purposes within 12 months.
Tickets must be sequentially numbered, detailed, and match the application.
Board Oversight ensures compliance and financial accountability.
Prizes must be pre-approved, advertised, and awarded promptly.
Reporting requires tracking revenue, expenses, and net proceeds.
Draws must follow the approved schedule and fair selection methods.
Eligibility rules (age, residency) apply to ticket purchasers.
Penalties for non-compliance
Failure to follow regulations can lead to fines, raffle license suspension, or legal action under sections 36 and 37 of the Gaming Control Act, which outlines penalties such as:
Various permits and license options are available depending on your raffle:
Ticket Lottery Permit for a series of ticket raffles with prizes $4,000 and under
Ticket Lottery Permit for a single draw ticket raffle with prizes $4,000 and under
Ticket Lottery License for raffles with prizes over $4,000
All eligible charitable organizations must specify on the application that all proceeds from the raffle ticket sales will be used for charitable purposes.
Eligibility requirements
Charitable, religious, and nonprofit community organizations can run legal raffles in Nova Scotia if the applicant is 19 or older.
All charitable lotteries and gaming events must be licensed to operate in Newfoundland and Labrador and conducted by the Lottery Licence Regulations under the Criminal Code of Canada.
There’s also an option for a 5-year license available under specific criteria.
Eligibility requirements
In Newfoundland and Labrador, various types of organizations can apply for a raffle licence, including religious groups, fire departments, scout groups, and other charitable organizations.
Types of raffles permissible
50/50 draws
Chase the Ace
Sports lotteries and pools
Calendar draws
Application processes
1. Visit the online application and create an account or sign in to apply
For a raffle with an anticipated gross revenue of $5,000 or more, you must apply for a standard raffle license. You must request a community license if the anticipated gross revenue is $5,000 or less.
For electronic raffles, the supplier of the raffle system must be licensed under LGCA and tested by an accredited testing facility approved by LGCA.
Eligibility requirements
The LGCA licenses charitable and religious organizations to conduct raffles. Others hosting one-time events at venues like banquet halls or bars can apply for a social occasion raffle licence.
Types of raffles permissible
Regular raffles
Player’s choice raffles
Percentage payout raffles (like a 50/50)
Chase the card raffles
Calendar raffles
Sport or event raffles
Application processes
1. Submit the Raffle Licence Application (Appendix G11-A) and a $5 licence fee to the community officer.
2. The department reviews and either approves or rejects the application.
3. Send a financial report within 30 days after the raffle.
Raffle laws
No fees for raffles under $10,000; those over pay 1.0% of gross revenue post-event.
Only licensed charities and religious groups can use LGCA-approved electronic raffle systems.
Licence changes require LGCA approval before implementation.
Advertising is only allowed after licence approval, must stay within Manitoba, and must include the organization's name and licence number.
Penalties for non-compliance
The LGCA may take certain measures if any rules are not complied with, including:
License suspension
Audits and inspections
Financial penalties
Law enforcement intervention for misuse of funds or failure to report
Prince Edward Island government allows for raffles to be held by nonprofit organizations under lottery scheme laws.
Necessary permits
For raffles with a total prize value of $5,000 or less, you must fill out a one-page application form at any Access PEI location. For raffles with a total prize value of $5,000 or more, you must fill out the two-page form and submit it to Financial and Consumer Services at least two weeks before starting ticket sales.
Eligibility requirements
Only non-profit and charitable organizations may request lottery licenses and the proceeds of a lottery must also be used for:
Relief of poverty
Education
The advancement of a recognized religion
Some other purpose beneficial to the community
Types of raffles permissible
Standard raffles
50/50 draws
Chase the Ace
Merchandise raffles
Series raffles
Application processes
1. For prizes $5,000 or less, fill out a one-page application at any Access PEI location to get your license on the spot.
2. For prizes over $5,000 or series events, submit a two-page application to Financial and Consumer Services at least two weeks before ticket sales.
3. The license will be issued immediately once reviewed and the fee is paid.
You must apply for a license if the total prize value is $500 or more. For raffles with a total prize value of less than $500, a permit will suffice to run the raffle legally.
Eligibility requirements
Religious, charitable, nonprofit organizations, amateur sports groups, agricultural fairs, and exhibitions can apply for a license or permit.
Types of raffles permissible
Standard raffles
50/50 draws
Chase the Ace
Series raffles
Special event raffles
Merchandise raffles
Application processes
1. Pick up Class A (prizes over $500) or Class B (prizes $500 or less) from SNB or JPS.
2. Include organization info, raffle type, prize values, ticket format, draw date, and location. Extra documents are needed for Chase the Ace or electronic raffles.
3. Send Class A to JPS ($50) and Class B to SNB or JPS ($20). Receive license upon approval.
Raffle laws
Class A raffle licence required for prizes over $500, Class B for $500 or less.
At least 15% of proceeds must support the nonprofit’s purpose.
Tickets must include organization name, recipient, license number, draw date, and location.
Financial records must be kept for six years; audits may occur.
Tickets can only be sold in New Brunswick; the license must be displayed.
Penalties for non-compliance
In New Brunswick, noncompliant nonprofits are subject to:
In Canada, running a raffle on Facebook or social media is illegal, no matter your province. All raffles need a proper license, and unregulated online lotteries don’t meet legal requirements for fairness, transparency, and responsible gaming.
Hosting one without approval could lead to fines, losing your license, or even legal trouble. If you’re considering running a raffle, check with your provincial gaming authority first.
Final thoughts and an electronic raffle system
Remember, each province in Canada has its own set of charitable lottery and raffle regulations.
As you plan your next raffle, use Zeffy's 100% free fundraising platform to generate and sell raffle tickets virtually and in person. Create customizable tickets and automatically keep track of sales through a centralized and user-friendly dashboard.
You cannot sell tickets for a raffle on any social media site, including Facebook, Twitter, Instagram, or TikTok.
Only charitable and religious organizations operating in Ontario for at least a year can run raffles with a license. Before applying for a raffle license, you must apply for "charitable gaming eligibility" (CGE) to determine if your organization qualifies. Grab the ultimate guide for 50/50 raffle fundraisers.
The key difference between a raffle and a drawing is the element of chance and purpose. A raffle is a form of lottery in which participants purchase tickets for the opportunity to win a prize.
In a drawing, all names are placed in a hat; a single name is picked randomly and declared the winner.
In Canada, running raffles on Facebook is illegal.
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Continuez à lire :
Raffle laws
Charitable lottery regulations in Alberta.
Online charitable lotteries. 50/50 draws in Alberta. Eligibility for a nonprofit or charity lottery licence. Zeffy can help make sense of lotteries in Alberta.
Online charitable lotteries. 50/50 draws in Quebec. Eligibility for a nonprofit or charity lottery licence. Zeffy can help make sense of lotteries in Quebec.
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