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Charitable Lottery Regulations in Ontario (Complete Breakdown 2026)
April 9, 2026
⚡TL;DR — The Short Answer
Ontario charitable lotteries are licensed by either the AGCO or your local municipality, depending on prize value and lottery type.
Your organization must be at least one year old, based in Ontario, and serve a qualifying charitable purpose to be eligible.
AGCO licenses cover raffles with prizes over $50,000, all electronic raffles, and bingo events with prize boards over $5,500.
Municipal licenses cover smaller raffles (prizes up to $50,000), local bingo events, and break-open tickets for local groups.
Lottery proceeds must benefit Ontario residents and stay in the province. You can't direct them to out-of-province causes.
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.
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:
Relief of poverty
Advancement of education
Advancement of 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.
AGCO license vs. municipal license: which do you need?
Feature
AGCO License
Municipal License
Raffle prize threshold
Over $50,000
$50,000 and under
Bingo prize threshold
Over $5,500 total prize board
Up to $5,500 total prize board
Electronic raffles
Required for ALL electronic raffles
Not available — AGCO only
Break-open tickets
Organizations with a provincial mandate
Local organizations only
Bazaar lotteries
Not typically required
Wheels of fortune (max $2 bet), raffles under $500, bingo under $500
Media bingo
Not required
Up to $5,500 in prizes
Combined gaming events
Required
Not available
License fee range
Approximately 1–3% of total prize value
Varies by municipality
First-time application timeline
At least 45 days before ticket sales
Varies — check with your municipality
Re-applicant timeline
At least 30 days before ticket sales
Varies — check with your municipality
Where to apply
AGCO online application portal
Your local municipal office
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.
How to apply for an Ontario charitable lottery license
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.
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
Step 3: Design a compliant raffle ticket
Your ticket must include specific information on both sides. Here's an example that meets AGCO requirements.
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
Post-license obligations
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.
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.
Reporting requirements
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.
AGCO audits
The AGCO can audit any licensed organization at any time. Keep your records accurate, organized, and accessible.
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
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
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.
No. Federal charitable registration under the Income Tax Act doesn't give you the right to run a lottery in Ontario. You need a separate license from either the AGCO or your municipality before you sell a single ticket.
Your license terms and conditions will specify how to handle unclaimed prizes. In most cases, unclaimed prize money must be added to your lottery proceeds and used for your stated charitable purposes. You can't keep unclaimed prizes or roll them into a future event without AGCO approval.
Yes, but each lottery event requires its own separate license. You can't run two concurrent raffles under a single license. Plan your applications and timelines accordingly.
Yes. Volunteers can sell tickets, but they must follow the same rules as the organization itself. Both the seller and buyer must be physically in Ontario at the time of sale. Your organization remains responsible for all volunteer activity related to the lottery.
A 50/50 draw is a type of raffle where the winner receives half the ticket sales proceeds as the prize. Ontario regulates it under the same raffle licensing framework. The prize value determines whether you need an AGCO or municipal license, just like any other raffle.
Only if the AGCO approves those expenses as part of your use-of-proceeds plan. Lottery proceeds are meant to fund your charitable purposes, not general operating costs. Any salary expenses charged against lottery proceeds must be directly related to delivering the charitable program the lottery is funding, and they must be approved in advance.
The only 100% free fundraising platform for nonprofits
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Keep reading :
Raffle laws
Alberta Lottery & Raffle Licence: How to Apply (2026 Guide)
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.
Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
Look for people who attend related events, follow relevant Facebook groups, or subscribe to aligned newsletters.These aren’t just potential donors—they’re your future advocates.
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