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

Question: Can our club hold a raffle, 50/50, or Share the Wealth draw?

Answer: Probus clubs should not hold raffles or 50/50 draws unless properly licensed. 

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 must 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.

To qualify for a license, an application must be submitted to the governing provincial body (see below for a list).

Licenses are only approved for organizations with charitable or religious objectives.

It is not likely that a Probus club will qualify for a license. Probus clubs are not service clubs, they are social clubs.

Example of a typical question on the application form is:  

1. The Charitable or religious objects or purposes to which proceeds
 are to be donated are described as _________________________

Our clubs are unincorporated, meaning, any fines or potential criminal charges would not be levied against 'the club' but against named individuals, such as the presidents.

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;

Note for clubs in Ontario

For draws smaller than $50,000, the Provincial Government has tasked its municipalities with the administration of the laws governed by the AGCO. This gives clubs the opportunity to inquire locally about the legality of 50/50 and similar events. For example, the Maple Leaf Probus Club received the following response from their Municipal Licensing Officer: “That being said, if the tickets aren’t being sold to the public and the proceeds are only benefiting members……..I would consider this a “fundraising” activity for the group. These types of events occur privately very often without requiring a licence (ie. jack and jills, buck n does etc.) With the draw not being advertised publicly, and the prize value being relatively small my recommendation would be to call this a fundraiser and not a raffle.”  Clubs should not assume that this view applies everywhere and should get a resolution from their own municipality before holding the event.