LOTTERY LICENSING POLICIES AND GUIDELINES

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1 LOTTERY LICENSING POLICIES AND GUIDELINES The information set out below has been prepared as a guide only. We advise that for accuracy, reference should be made to the Terms and Conditions prescribed by the Alcohol and Gaming Commission of Ontario, and it is your responsibility to comply with the terms and conditions as they apply to your type of lottery. The following information and documents must be submitted to the Lottery Licence Office (Town of Orangeville) when applying for a lottery licence. 1. A fully completed application form signed by 2 signing officers. 2. The applicable licence fee. (3% of prize total value) cheque payable to Treasurer-Town of Orangeville. 3. The retail market value of prizes to be awarded shall not be less than 20% of the anticipated gross proceeds from sale of tickets calculated on the total number of tickets expected to be sold multiplied by the price per ticket as per the licence application. 4. A complete list of prizes to be awarded and their retail market value as well as a detailed description of the manner in which the winner will be determined. 5. Copy of a sample raffle ticket. (See attached sample.) 6. A budget covering the current 12 month fiscal or calendar year, detailing how lottery revenues will be acquired and dispersed. 7. Any other information that will assist in determining the charitable nature of the organizations object and purposes, eg. copy of letter of incorporation or constitution and/or by-laws, charitable number for income-tax purposes, etc. 8. Organizations must have an established structure which may include a Board of Directors and a constitution and by-laws and have a stated purpose or mandate which must include charitable undertakings in one of the following classifications: a) The relief of poverty; b) The advancement of education; c) The advancement of religion; d) Other charitable purposes beneficial to the community not falling under a, b or c, (these can be grouped into four sub-classifications) - nature of culture and arts - nature of health and welfare - sports organizations (youth amateur sports groups where the majority of the players are under the age of 18 years) - service clubs The minimum requirements for the purposes of providing eligibility as a charity must meet the following criteria: Organization s name Organization s purposes 9. A clause stating that the organization shall be carried on without purpose or gain for its members, and any profits or other accretions to the organization shall be used solely to promote the objectives of the organization. 10. The organization s structure (president or chair, secretary, treasurer, etc., i.e. organization chart). 11. A provision that explains how the organization will replace its directors and directing officers. Page 1 of 6

2 12. The effective date of the starting of the organization. 13. Original signature of at least three of the organization s directing officers. 14. It must be stated whether the organization is recognized by the Public Trustee and/or Revenue Canada as being charitable and it is complying with the reporting requirements under the Charities Accounting Act or is completing a Public Information Return under the Income Tax Act, and as applicable provide a copy of the most recent public information return. An organization must have been in existence for at least one year before being considered eligible for lottery licenses. Lottery proceeds cannot be used to start up a charitable or religious organization. An organization must have a place of business in Ontario, demonstration that it is established to provide charitable services in Ontario, and use proceeds for objects or purposes, which benefit Ontario and its residents. The proposed use of proceeds must be specific and consistent with the primary objects and purposes of the organization, which must be of a charitable nature consistent with at least one of the four classifications of charitable purposes as listed above. Lottery Expenses by Order of Council 2688/93 limits expenses to only those set out in the Terms and Conditions that are reasonable and necessary and are actually incurred in the management and conduct of the lottery. Each organization shall provide the Lottery Licence Office (Town of Orangeville) with a verified financial statement on a yearly basis outlining the financial details of all LOTTERY events conducted (i.e. reconciliation of LOTTERY TRUST ACCOUNT). The financial statement must be submitted within 180 days (6 months) of the organization s year-end. In addition to the requirements stated herein, all terms and conditions (as attached) relating to the lottery must be complied with. Licenses will not be issued upon submission, and we ask that you allow at least one week for processing. LOTTERY LICENSING REPORTS The following information applies when completing the Lottery Licensing Report, which must be received in our office within 30 days of the lottery event. The net proceeds derived from the conduct of the lottery shall be used for the charitable and religious objects or purposes as approved in the licence application. All prizes and expenses incurred as a result of conducting the lottery shall be listed and deducted, and paid out from the gross receipts derived from the lottery. The licensee shall not use monies from any other source to pay for the expenses. In case of a raffle, where the prize is donated, the value of the prize must still be shown on the report form, however, the value is not included in the total. Page 2 of 6

3 Along with a completed lottery report the following back up documentation must be submitted: 15. Copies of all deposit slips and cancelled cheques relating to the lottery event to reconcile with the figures reported on the lottery report. (Reconciliation of Bank Account) 16. For a raffle lottery licence the name(s) of the prize winner(s) must be supplied. (Only the prize(s) as described and approved in the licence application shall be awarded) BANKING AND FINANCIAL REQUIREMENTS The licensee must open a separate lottery trust account to administer all funds related to the conduct of lottery events. This account must have cheque writing privileges and monthly statements issued and must state In Trust on the cheques. There must be a paper trail of all transactions for audit purposes and no money may be transferred from the lottery trust account from any other source. Each expense must be individually calculated and paid separately by cheque drawn on the lottery trust account. The licensee shall obtain receipts for each expense incurred, and maintain a detailed record of how profits from the lottery have been dispersed. Designated Lottery Trust Accounts A licensed organization must open and maintain a separate lottery trust account, designated as a trust account by the branch of a recognized financial institution, in the Province of Ontario. The designated lottery trust account must be in Canadian funds. If the licensee conducts more than one type of lottery event, it may hold either one designated lottery trust account for all lottery proceeds or a separate designated lottery trust account for each type of lottery. If the licensee maintains only one lottery trust account, the licensee must keep a separate ledger for each type of lottery event and for each licence issued. The bookkeeping and accounting requirements for each type of lottery are covered in detail in the licence terms and conditions. The trust account(s) must: be a chequing account; require at least 2 authorizing signatures; be held in the name of the licensee, in trust; have duplicate deposit slips, with one copy kept for the licensee s records; provide monthly statements; and include either the return of all cheques with the monthly statements or the return of electronically scanned images of the front and back of each cancelled cheque with the monthly statements. Page 3 of 6

4 The fact that it is a trust account must be stated on the face of the cheques and attached to the lottery application. Lottery applications will be returned if this information is not attached. CHEQUE SAMPLE Charity Name 001 Lottery Account In Trust 123 Any Street Any Town, ON L9W 1T1 Date dd/mm/yyyy Pay to the Order of $ /100 DOLLARS Bank Name Address Memo Signed Signed Note: Any interest accrued on the lottery trust account shall be used for the charitable purposes of the licence. Page 4 of 6

5 TICKET REQUIREMENTS The licensee shall print only the number of tickets indicated and approved in the application for the licence. Tickets shall be consecutively numbered. 1. a) The licensee shall have tickets printed in two parts which shall contain the following information: i) the licence number; ii) the name of the licensee, the location(s), date(s), and time(s) of the draw(s); iii) a description, including the nature, number and value of the prize(s) to be awarded; iv) the price of each ticket; v) the number of the ticket, and; vi) the total number of tickets printed. b) On the part retained by the organization (for draw or record purposes): i) the number of the ticket; ii) the licence number and the name of the licensee; iii) adequate space for the name, address and telephone number of the ticket purchaser. 2. If tickets are to be discounted from the regular price (i.e. $1.00 or 3 for $2.00), then the prices shall be indicated and printed on each ticket. 3. At the request of the licensing authority, the licensee shall provide a sample (below) of the ticket. CHARITY NAME Name: Address: Phone No: Sold By: Licence No. M CHARITY NAME 1 st Prize Dinner for Two at (Valued at $180) 2 nd Prize 2 Theatre Orangeville Vouchers (Valued at $ 50) 3 rd Prize $100 cash $5.00/ ticket Draw to be made April 15, 1998 at 1:15 p.m. Lazy Maple Retirement Centre, 2 Broadway, Orangeville Ticket No. 001 (300 tickets to be sold) Proceeds to CHARITY NAME Licence No. M Ticket No. 001 (300 tickets to be sold) Page 5 of 6

6 4. The licensee shall not use any type of scratch and win ticket. 5. Where prizes are donated, and the donor and the licensee agree, the donor name or company name may be included on the ticket, provided that the name of the licensee is more prominent. 6 Tickets shall not bear any coupon, promotional or advertising material unless it is promoting the licensee and approved by the licensee. We hope you have found this guide to be informative and useful. Please direct any inquires to Johanna Wilson in the Clerk s Department at , ext To obtain application forms and additional information, please visit the AGCO website directly at Page 6 of 6

7 Alcohol and Gaming Commission des alcools Group Identification Number (GIN) Application to Manage and Commission of Ontario etdesjeuxde!'ontario Numero d'identification d'organisme (NIO) Conduct a Raffle Lottery Gaming Registration and Inscription pourlesjeux Demande de permis pour administrer Lotteries etloteries 20 Dundas Street W, 7th floor 20 rue Dundas ouest, 7~ etage et conduire une tombola (tirage) Toronto DN MSG 2N6 Toronto ON MSG 2N BOO toll free in Ontario I sans frais en Ontario We, the undersigned, as two principal officers of record (organization) Les soussignes, qui sont deux principaux dirigeants de (organisme) Address Adresse apply for a licence to manage and conduct a Raffle Lottery from the premises municipally known as font une demande de permis pour administrer et conduire une tombola(tirage) dans les locaux connus dans Ia municipalite sous le nom de and situated in the Municipality of et situes dans Ia municipalite de between the dates specified, and for the charitable or religious objects entre les dates indiquees, a!'intention des oeuvres religieuses ou de and purposes, and in the manner described herein. bienfaisance specifiees et de Ia maniere decrite dans les presentes. 1. The Charitable or religious objects or purposes to which proceeds 1. Les profits seront repartis aux oeuvres religieuses ou de are to be donated are described as bienfaisance suivantes. 2. The total value of all prizes to be awarded in the Raffle Lottery for 2. La valeur totale de tous les prix qui seront attribues dans le cadre which this application is made will be $... cash de Ia tombola (tirage) pour laquelle cette demande est faite sera value, or merchandise or articles at equivalent market retail value. de... $en especes, ou une valeur equivalente Merchandise prizes are described as au detail. Les prix de valeur au detail consisteront en 3. Closing date for the sale of the tickets will be La date finale pour Ia vente de billets sera le... and the draw for a winner or winners will be made at (address) et le tirage du ou des gagnant(s) sera fait au (adresse) on {date)... at(time)... If a series of draws, beginning date... ending date... Numb.erofdraws A winner or winners will be determined by (describe) and the name(s) and address(es) of the winner or winners will be published (describe) le (date)... a{heure) S'il y a plusieurs tirages, premiere date... derniere date ,.,... Nombre de tirages Le ou les gagnants seront determines (preciser) et le nom et l'adresse du ou des gagnant(s) seront connus par (preciser) 5. The total number of tickets to be printed will be Le nombre total des billets qui seront imprimes sera de... and all tickets will be numbered consecutively from... to... Price per ticket$... et tous les billets porteront des numeros consecutifs allant de a Prix du billet... $. Certificate I Attestation We (name)/nous soussignes(nom) of (organization) /de organisme) of (municipality)/de (municipalite)... of the county of/ du comte de..... jointly and severally, hereby certify thauattestons collectivement et individuellement que: 1) We have read, and have in our posession, and agree to comply with, the provisions of Schedule A-Terms and Conditions under which the Lottery Licence is issued. 2) We have read over this application. 3) All facts stated and information furnished herein are true and correct. 4) We are the holders of the offices with descriptive title as set out and appearing under our respective signatures below. 5) If a licence is granted, we undertake to comply with all the terms and conditions of such licence. 1) Nous avons lu les dispositions de l'annexe A- modalites inherentes a Ia delivrance d'un permis de tombola (tirage), que nous les avons en notre possession et que nous acceptons de nous y conformer, 2) Nous avons lu Ia presente formule, 3) Tous les faits indiques et les renseignements fournis dans les presentes sont veridiques et exacts, 4) Nous assumons les fonctions correspond ant aux titres specifies sous nos signatures respectives ci-dessous, 5) Si un permis est delivre, nous engageons a en observer les mod a lites. Signed/Signature Print Name/Nom en lettres moulees Title/Titre Bus. Telephone No. N. de tel. d'aff. Date/Date Witness (sign) Temoin(signature) 6004 B (98/07)

8 Alcohol and Gaming Commission des alcools Lottery Report/Rapport de loterie Commission of Ontario et des jeux de!'ontario Gaming Registration and Lotteries Inscription pour les jeux et loteries 20 Dundas Street West 20, rue Dundas Ouest 7th Floor 7 etage Toronto ON M5G 2N6 Toronto ON M5G 2N6 (416) toll free in Ontario/sans frais en Ontario Group Identification Number (GIN} Numero d'identification d'organisme (N.I.O.} Note: This report must be filed with the Lottery Licensing Officer within 30 days of the holding of the lottery in accordance with the terms and conditions under which the lottery licence was issued. Remarque : II faut soumetlre ce rapport ai'agent(e) de delivrance des licences de loterie dans les!rente jours qui suivent Ia loterie conformement aux modalites en vertu desquelles Ia licence de loterie a ete delivree. 1. Organization Name - Address/Nom et adresse de l'organisme Lottery Licence No./N de licence de loterie Type of Lottery/Genre de loterie O R_affle/Tombola 0 BazaarNente de charite (trrage) Lottery Date/Date de Ia loterie 2. Total number of tickets or cards I Nombre total de billets ou de cartes Price per TickeUPrix du billet Printed/lmprimes I SoldNendus I Unsold/Non vend us Note: In the case of a Raffle, a hst of all pnze w1nners must accompany the return of th1s report. Remarque: S'il s'agit d'une tombola (tirage), Ia lisle des gagnants des prix doit accompagner le present rapport. 3. Total Gross Receipts derived from lottery/total des recettes brutes tin~es de Ia loterie... $ j Application of Funds/Affectation des fonds (a) Total value of prizes awardednaleur totale des prix attribues... -$ (b) Total administrative costs incurred/total des frais d'administration engages (attach itemized list/joindre une liste detaillee)... -$ Net proceeds derived/recettes nettes obtenues $1 4. Details of Donations/Renseignements sur les dons (For proceeds actually donated/recettes reellement donnees) L., Name of Payee/Nom du beneticiaire Address of Payee/Adresse du beneficiaire Amount Donated/Montant donne Total value of proceeds actually donated for charitable or religious purposes/ Valeur totale des profits reellement donnes a des oeuvres religieuses ou de bienfaisance $ 5. Chartered Bank, Loan or trust company or Province of Ontario Savings Office in which the Lottery Trust Account is kepubanque a charte, compagnie de pret ou de fiducie ou caisse d'epargne de Ia province de!'ontario ou se trouve le compte de loterie en fiducie. Name of Bank/Nom du Ia banque Branch Address/Adresse de Ia succursale Account Number/Numero de compte Balance of proceeds retained in Lottery Trust AccounUSolde des profits conserve dans le compte de loterie en fiducie $ We, the undersigned, as two Principal Officers of the above organization, certify that the above report is a correct statement ofthe lottery funds herein. Nous, soussigmis, atitre de dirigeants principaux de l'organisme mentionne ci-dessus, attestons que le rapport qui precede decrit correctement l'etatdes fonds de loterie en question. Principal Officer/Dirigeant principal Signature Name in full/nom au complet Title/Titre Bus. Telephone/Telephone d'aff. Date Principal Officer/Dirigeant principal B (99/07)

Bazaar Lottery Information Package

Bazaar Lottery Information Package What is a Bazaar Lottery? A Bazaar is an event where any combination of the following lotteries may be conducted: (a) a raffle not exceeding $500.00 in prizes; (b) a