Charitable Raffle Questions

Who can conduct a raffle?

The Manitoba Gaming Control Commission (MGCC) may license charitable and religious organizations to conduct a raffle within the Province of Manitoba in accordance with Section 207 (1) (b) of the Criminal Code (Canada).  If your organization has never been licensed by the MGCC, you will be required to submit background documentation on your organization to determine eligibility. 

Our office holds a payday pool every second week.  Do we need a licence?

All raffles must be licensed.  In order to the eligible for a licence, you must be a charitable or religious organization.  Offices/businesses/individuals are not eligible to operate lottery schemes.


Do all raffles require a licence?  Tickets will only be sold within our organization do we require a raffle licence?

Yes, all raffles require a licence; conducting a raffle without a licence is a Criminal Code offence. 

We are selling tickets for 25¢ each for a chance to win a quilt and do not expect to make more that $25; do we need a raffle licence?

Yes, regardless of the selling price of the ticket(s), the prize or the anticipated revenue, all raffles must be licensed.   Your organization would be required to apply for a Community Raffle licence for any raffle with anticipated revenue of $5000 or less.


Can my business obtain a licence to hold a raffle and donate all the proceeds to charity?

Businesses and individuals do not qualify for a raffle licence regardless of the intended use of profits.  The Criminal Code (Canada) states that you must be a charitable or religious organization to be licensed to conduct a lottery scheme.


When is a licence not required for a draw?

A licence is not required if an organization is conducting a “free draw”.  Draws for door prizes do not require a licence if there is no charge or consideration to enter the draw.  Participants must not be required to make a donation or pay an entry fee to an event in order to enter a “free draw”.  The draw must be open to anyone wishing to participate.


Is a silent auction considered a raffle?

A true silent auction, where participants voluntarily place written bids for a “prize” and only the highest bidder pays money for the “prize”, is not considered a raffle.


How long does it take to obtain a raffle licence?

For raffles with anticipated gross revenue of $5,000 or less, please allow 3 weeks for processing.  For raffles with anticipated gross revenue over $5,000, please allow 4-6 weeks for processing.  Processing times are for a complete and accurate package.  Applications that are complete (e.g., all information provided, all required documents are included, signatures, names and addresses are completed) usually are processed more quickly; an incomplete application could result in a longer processing time.  The application guide will help you to properly complete and submit your application to us.   Raffle events can not be advertised and tickets can not be printed prior to a licence being issued.   


What is the cost of a raffle licence?

Licence fees are based on anticipated revenue.  For Community Raffles with anticipated revenue of $5000 or less there is no licence fee.  For standard raffles with anticipated revenue over $5000, organizations will be required to submit a licence fee of 1.5% of the actual gross revenue.  Fees are due with your event and financial reports.  Reporting requirements are set by the MGCC at the time of your approval.

Where can we get an application for a raffle?

Raffle Applications are available from our website or by calling our office at 954-9400 or toll free at 1-800-782-0363.  Remember to print, read and ensure you understand the Raffle Terms and Conditions as these will be the terms and conditions which your organization will need to comply with.

Which raffle application do we complete?

Organizations need to select the appropriate application based on your anticipated revenue.  To calculate your anticipated revenue, multiply the total number of tickets available by the maximum price per ticket. Once this has been determined, print and complete the correct application and guide. Raffles with anticipated total revenue of $5000 or less will use the Community Raffle Application and raffles with anticipated total revenue over $5000 will use the Standard Raffle Application.


What do we need to submit with our application?

In order to determine an organization’s eligibility for a licence, first time applicants and organizations not licensed in over three years, must provide as many of the following documents as possible with their application:  charter, constitution and by-laws, articles of incorporation (and most recent corporate annual return), minutes of most recent annual general meeting, membership list, most recent financial statement, and bank statements.
Other requirements are clearly listed in the application guide and include such things as; sample ticket, copies of contracts with the suppliers or services, current bank statement or prize guarantee, and rules governing your raffle. 


Our organization is very small and we do not have the background documentation you are requesting.  Can we still obtain a licence?

Yes, if your organization is a charitable or religious organization.  We recognize that many of the smaller clubs are not organized to this extent and may not possess formal documentation.  In such cases, minutes from meetings, letters of reference from principals, councilors, priests, or mayors may be acceptable. These references should state:

1. that the group is in fact a bonafide organization
2. its aims and objectives
3. the reasons/need for the raising of funds

What if we don’t use the titles of; president, vice-president, secretary, treasurer?

If the titles of your executive members are not consistent with the titles we provide on the application, please indicate the actual organization title on your application.  Organizations must adapt their titles to those on the form in a “best fit” manner as necessary, (e.g. Executive Director, Grand Knight, Head Coach, Manager, Principal, or Minister may replace President).  The executive members you list on the application must be the actual elected executive of the organization itself and not members of a sub-committee who have been given responsibility for the lottery.

Is it possible to sell our tickets for different price levels ($2 each or 3 for $5).  What do we need to know?

Organizations must be accountable for all revenue and all revenue must be auditable.  Therefore, if you are selling tickets at multiple price levels, you must have distinctive ticket numbers and ticket color(s) for each price level.  This requirement applies whether you use double roll tickets or printed tickets.


When can we print our tickets?

The application guide will advise if you are required to submit a ticket draft with your application for consideration.  An actual printer’s proof may also be requested, and instructions would be provided if further review is necessary. Tickets can only be printed once your licence and ticket proof if required, is approved. 


Does the MGCC set an expense limit?

Yes. Anticipated expenses must be specified on the application. The maximum expense limit is 20% of the anticipated gross revenue. Prizes and licence fees are not included in expenses.


Are there any limitations to advertising our raffle?

Once a licence has been approved, a raffle can only be advertised in Manitoba.  All advertisements must contain the name of the licensed organization and the licence number.  Your advertising plans and expected costs must be included on your application and your total expenses cannot exceed 20% of your anticipated gross revenue. Advertisements must adhere to federal, provincial and community advertising laws and standards.  If you are advertising on the internet, certain restrictions apply. 

What is a supplier?

A supplier is an individual, business entity or association of persons that charges to provide gaming management or consulting services under an agreement with an organization to assist in the conduct and management of a raffle or other lottery scheme. When considering a gaming service supplier, it is your responsibility to ensure they are registered with the MGCC.

Where can we get a list of registered suppliers?

Contact our Registration Department. Licensed organizations must not do business with an unregistered gaming service supplier. You can check the yellow pages for suppliers, but this doesn't mean these businesses are registered with the MGCC.

Is our organization required to open a separate lottery account?

A separate lottery chequing account must be used to deposit all revenue. If you hold other charitable gaming licences, you may use just one bank account, but separate deposits must be made for each scheme's proceeds. You must not transfer lottery revenue into any of your organization's general operating accounts.

How can the funds generated from our raffle be used?

Eligible organizations must use lottery proceeds generated from lottery activities for the advancement of education, religion, health, the relief of poverty, or must benefit the community through the promotion of sport, recreation, culture, or any other area considered appropriate by the MGCC. This information is to be as detailed as possible.  Organizations who find it difficult to indicate where the profits are to be directed, should refer to their last financial statement or their proposed budget.  Organizations should then choose area(s) they would like to subsidize with lottery funds. 

Are we obligated to give away a certain percentage of the anticipated revenue?

No, prizes do not need to be based on a percentage of anticipated revenue.  It is up to the organization to determine prizes offered.  The MGCC does not set prize limits, however all prizes offered must be guaranteed. Only where the prizes offered are based on a percentage (e.g., 50/50 draw) would you be required to give away that percentage. 

What if our organization does not have current funds to cover the cost of all prizes being offered?

The total cost of all prizes must be guaranteed prior to a licence being issued.  The MGCC will accept the organization’s current bank statement, an irrevocable standby letter of credit from a financial institution or proof of purchase.  Proof of purchase must include “paid in full”, the date it was paid, the method of payment and must be initialed by the supplier.  The MGCC will not accept a third party guarantee. Sample irrevocable standby letter of credit.

What is a contractual agreement and when do we need one?

A contractual agreement is an agreement between the organization and the supplier of a prize.  Contractual agreements are required for each individual prize valued at $500 or more regardless of if they are donated or purchased.  Sample contractual agreement.

If we are offering a prize such as a vehicle, is the prize taxable?

Generally if you are offering a vehicle as a prize, the organization would pay applicable taxes when buying the vehicle.  If however, you choose to leave this expense up to the winner of the prize, your ticket and rules must clearly state the exact costs which would be incurred to claim the prize.

Can we offer sellers prizes?

Yes, seller prizes can be offered.  However, they must be indicated on the application as an expense of the lottery.  Total raffle expenses including your seller(s) prize(s) must not exceed 20% of the anticipated gross revenue.

How many raffles can we have in one year?

Organizations may be licensed to conduct, or be a participant in the licensed conduct of only one (1) raffle with a prize value more than $350,000 per calendar year; and only two (2) raffles with prize values between $125,000 and $350,000 per calendar year; and an unlimited number of raffles with prize values under $125,000. 


Does the MGCC include the value of any insured prize in the total value of all prizes offered whether or not the insured prize is awarded?

Yes, the MGCC includes the value of any insured prize in the total value of all prizes offered whether or not the insured prize is awarded.  The value of the insured prize may therefore cause the raffle to be placed in a higher category than that of the total value of the guaranteed prizes alone. As an example, an organization would only be permitted to have one raffle during a calendar year if it offered a guaranteed prize of $250,000 as well as a chance of increasing the prize to $500,000.

Can we hold more than one raffle at a time?

Yes, however organizations may only be licensed to conduct one raffle with a prize value more than $350,000, two raffles with prize values between $125,000 and $350,000 and an unlimited number of raffles with prize values under $125,000 per calendar year. 

Can we apply for one licence to hold several raffles?

Organizations wanting to run raffle(s) based on a set schedule may be issued a one year licence.  For instance, organizations wanting to run a 50/50 draw every Friday could be issued a one year licence that would cover all those specific draws.  Organizations wanting to run several different types of raffles throughout the year would be required to apply for each one individually.

Can we get a raffle licence elsewhere?

Organizations based in a rural community wanting to operate a raffle may choose to visit their municipal office, town office, LGD office, or band office.  These offices are authorized to issue licences to organizations based within their municipality, where the total prize value does not exceed $3000.  Not all municipal offices issue licences.  Be certain to check to see if this option is available.  First Nation Gaming Commissions are also authorized to license all gaming within their boundaries. 

Can our organization issue a tax receipt for tickets purchased?

No. Purchasing a lottery ticket is not considered a taxable donation.  Please contact the Canada Revenue Agency for information on charitable donations.


We received forms with our raffle licence package.  What do we do with these forms?

All records relating to the conduct and operation of a raffle, including sold and unsold tickets must be kept by the licensee for at least three (3) years.  Organizations with anticipated revenue over $5000 must submit their financial forms to the MGCC within 60 days of their final draw.  Organizations with anticipated revenue of $5000 or less must simply keep the forms with records of the licensed event and are not required to submit them.  However, these records may be requested during an inspection, audit or during the review of a future application.

The foregoing are the most commonly asked questions. If you have questions or concerns that are not answered here, please contact the MGCC directly: 954-9400, 1-800-782-0363 or by e-mail at licensing@mgcc.mb.ca