Can our club hold a raffle or 50/50 draw?

Question: It has always been acceptable that we sell tickets for a 50/50 draw at our monthly meetings with half of the money going to the winner of the draw and the other half remaining with our Club. The money from this draw is used in our various programs. (i.e. speakers, etc.) 

One of the Members on our Management Team was given a box of cleaning products and since she was unable to use them, has offered them to the Club for a raffle. Again we would sell tickets the same way as the 50/50 tickets except in this case the winner receives the cleaning products and the money from the ticket sales would remain with our Club to help defray the cost of decorations (i.e. centre pieces to present to Members on their birthday). 

Would the above activities be acceptable for our Club according to PROBUS CANADA's Constitution and Bylaws?

Answer: The following is not to be considered legal advice but a layman's guidance based on readily available government documentation.

In Canada, raffles and 50/50 draws are considered gambling because participants have to pay for a chance to win a prize. Gambling is prohibited by Criminal Code 207 unless licensed by the respective province or municipality. A licensed charitable organization may use the proceeds for a charitable purpose.

From this follows that Probus clubs should not hold raffles or 50/50 draws unless properly licensed. 

It is doubtful that licencing authorities will consider Probus clubs to be charitable organizations because clubs are established solely for the benefit of their members so may not have a public benefit. However, we would welcome to learn from clubs that have obtained the required gambling license.

Please note that previous guidance was different but could not be verified against legal documentation.

Key excerpts from government documentation as of May 2024:

Alberta AGLC: Can I sell 50/50 tickets and squares that are less than $1,000 without a gaming license? No, all 50/50s and squares are legal gaming events and must be licensed. Individuals are not eligible for a raffle licence. Only charitable or religious organizations can obtain a raffle licence.

British Columbia: A community group or organization may be eligible to receive a licence to hold a gambling event that earns revenue to benefit charitable or religious programs and services within B.C. A licence must be applied for in advance of the proposed gambling event. 

Manitoba LGCA: To be legal, gambling must be licensed. [...] Raffles are a way for charitable and religious organizations to raise money. Although some people think of buying a raffle ticket as making a donation with the added opportunity to win something, it is still gambling. Any activity that has a cost to play and a chance to win a prize is gambling. The same goes for bingos, 50/50s and chase the card draws. If you have to pay for a chance to win a prize, it is gambling.

New Brunswick: Eligible charitable and religious organizations are able to obtain a license to conduct events such as bingos, bingo event breakopen ticket sales, raffles, breakopen ticket sales, Monte Carlo events and Texas Hold 'em Poker tournaments. Proceeds from charitable gaming must be used for the relief of poverty, education, advancement of religion or a purpose beneficial to the community.

Nova Scotia: Charities, religious organizations and non-profit community organizations need the licence to offer games of chance.

Ontario AGCO: The Social Gaming Licence is a new, free licence for casual social gaming activities, like cribbage, bridge, or bingo. The licence is broadly intended for social and service clubs, community and seniors’ groups, organizations, individual applicants or charities that host casual social gaming events in public places.

PEI: A lottery license is needed to operate a gaming event on Prince Edward Island. [...] A gaming event is any event where: a participant has to pay to play, the winner is determined by chance, the prize is greater than the cost to play

Saskatchewan SLGA: Do all raffles need to be licensed? Yes. The Criminal Code of Canada states that all gaming is illegal, unless it is licensed or operated by a government; and that licensing authorities in each province may only license charitable or religious organizations to raise funds through lottery schemes.

Criminal Code: 207 [...] it is lawful [...] for a charitable or religious organization, pursuant to a licence issued [...] to conduct and manage a lottery scheme in that province if the proceeds from the lottery scheme are used for a charitable or religious object or purpose;