The Provincial Government is changing the rules for lottery licensing to modernize the process and make it easier for eligible charitable and religious organizations applying for a licence.
The Honourable Sarah Stoodley, Minister of Digital Government and Service NL will be available to the media to discuss the changes to the Lottery Licensing Regulations today (Tuesday, June 4) at 10:00 a.m. in the West Block lobby of Confederation Building.
Eligible charitable and religious organizations that wish to hold a series of events will now be able to obtain a two-year licence. Eligible organizations that run an annual lottery event will only have to submit a new licensing application every five years but will receive a licence annually upon notifying the department of the draw date and prize amount.
To allow time for charitable and religious organizations to prepare and modify any of their processes, the effective date of the changes will be July 2, 2024.
Applications submitted before July 2, 2024 will be assessed based on the current rules.
Information on this change and other changes to the lottery licensing process is available in the backgrounder below.
Information is also available on the department’s website about what organizations and activities are considered eligible or ineligible. To apply for a lottery licence, organizations can use the online application.
The changes are a result of consultations conducted by the Department of Digital Government and Service NL with key stakeholders and the public.
The consultations focused on five main areas:
- Clarification of licensing requirements;
- Electronic and online gaming;
- Delegation of lottery operation and management;
- Contract restrictions; and
- Approved types of lotteries.
A What We Heard document is available online and outlines the feedback received during the consultation process.
Newfoundland and Labrador’s Lottery Licensing Regulations align with the terms and criteria outlined in the Criminal Code of Canada. The Provincial Government encourages charitable and religious organizations interested in operating a lottery to become familiar with the rules for charitable lotteries in Newfoundland and Labrador.
The Lottery Licensing Regulations are available in the Newfoundland and Labrador Gazette.
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“The valuable feedback we received during the consultation process has helped to inform these changes and I look forward to seeing how they will improve the experience of charitable groups and the public.”
Honourable Sarah Stoodley
Minister of Digital Government and Service NL
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BACKGROUNDER
Lottery Licensing Changes
| Before | After |
| Eligibility for a lottery licence is assessed for each lottery licence application. | Allow separate applications for lottery scheme licences and allow up to five-year eligibility for a lottery licence, subject to applicable criteria. |
| A lottery licence period cannot be longer than 12 months, unless expressly authorized by the Department of Digital Government and Service NL. | A lottery licence period for a series of lottery events can now be in effect for 24 months. |
| The maximum pay out for a single Bingo event is $1,500 and for a combined Bingo event is $3,000. | The maximum pay out for a single Bingo event is $2,500 and for a combined Bingo event is $5,000.
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| Prize winners in a ticket lottery are notified of the results of the draw by telephone, registered mail or in person.
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Prize winners in a ticket lottery can now be notified of the results of the draw by email. |
| Other than payout rules for Bingo lotteries and ticket lotteries, there are no payout rules for other types of lotteries.
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All types of lotteries now require payout rules. |
| Contracts are only allowed where the method of payment is fixed and pre-determined.
Payment terms based upon a percentage or commission is not allowed.
20 per cent commission paid on ticket or entry sales are allowed.
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Percentage payment contracts or agreements with suppliers are now allowed with a cap of 15 per cent of gross receipts.
The 20 per cent commission paid on ticket or entry sales remain unchanged. |
| No reference to electronic raffles or electronic gaming equipment.
|
The operation of electronic raffles and the use of electronic gaming equipment is now allowed.
Rules on operational requirements and technical specifications for electronic raffles and electronic gaming equipment is available here.
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| Electronic raffles are allowed for the selling of paper-based tickets only. | Other electronic gaming equipment that allows the sale of an electronic ticket, selection of a winner and distribution of a prize, is now also allowed, in addition to electronic raffles.
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| The rules for ticket lotteries only allow paper-based tickets. | The rules for ticket lotteries have been updated to allow for electronic tickets, in addition to paper-based tickets.
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