Texas Hold'Em FAQs

Who can conduct a Texas Hold’em poker tournament?

The Manitoba Gaming Control Commission may license charitable organizations and religious organizations to conduct Texas Hold’em poker tournaments 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.

When is a licence not required for a Texas Hold’em poker tournament?

It isn't always easy to know whether a licence is required or not. Gaming laws in Canada are complex. Games that involve a cost, chance to win and a prize are considered a lottery scheme under the Criminal Code (Canada). However, even if these elements are not present, benefiting from the operation of such events may be against the Criminal Code (Canada). Your organization or business should be aware of the risks of conducting unlicensed events. The MGCC cannot provide legal advice regarding the legality of your proposed event. If you are uncertain about the legality of an event you should contact a lawyer for interpretation and advice about the applicable laws including the Criminal Code (Canada) and the Gaming Control Act and Regulation.

How long does it take to obtain a Texas Hold’em poker tournament licence?

Organizations must allow 4-6 weeks for processing of a complete and accurate package. Applications that are complete (e.g., all information is 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. Texas Hold’em poker tournaments can not be advertised prior to a licence being issued.

What is the cost of a Texas Hold’em poker tournament licence?

Licence fees are based on anticipated revenue.  For tournaments with anticipated revenue of $5,000 or less there is no licence fee.  For tournaments with anticipated revenue over $5,000, 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.


What things do I need to consider when planning a Texas Hold'em poker tournament?

These kinds of tournaments are complex. The Texas Hold’em Poker Tournament Terms and Conditions state specific requirements and details which you need to think about and plan for including:

Venue

1.      What is the venue's capacity?
2.      How many tables and chairs will we need?

Tables, equipment and human resources

1. Do the tables meet tournament requirements?
2. How many chips will we need to accommodate the maximum number of players and how will we identify them?
3. How many decks of cards do we need?
4. How many dealers are needed to operate the tournament?
5. What kind of training is required?

Suppliers

1. Do we require the expertise of a registered supplier?
2. What is the cost of hiring a registered supplier?
3. Should we use a supplier for the equipment, staff or both?

Expenses

1.      Have we made sure our expenses do not exceed 15% of anticipated gross revenue?
2.      Do we plan to pay wages?
3.      Will there be costs for other promotions or door prizes?
4.      Will we pay rent for the venue?
5.      What kind of advertising/event promotion is required?
6.      What are the costs for professional services?
7.      What are the costs of gaming/equipment supplies?

Prizes

1. How many prizes will be offered? What is the prize structure?
2. Have we planned our event to ensure a profit of at least 15% of anticipated gross revenue?
3. Will we offer cash prizes, merchandise or both?
4. If we are offering cash prizes, will they be set prizes or based on a percentage of entry fees?
5. Will rebuy revenue (if applicable) to be part of the prize structure?
6. Will prizes be purchased or donated?

Where can we get an application for a Texas Hold’em poker tournament?

A Texas Hold’em Poker Tournament Application is 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 Texas Hold’em Poker Tournament Terms and Conditions as these will be the terms and conditions which your organization will need to comply with.

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; contracts with suppliers of equipment, services or prizes and a typed copy of your tournament rules.

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 have a 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.

What are the benefits of having event pre-registrations?

If the organization is unsure of the success of the event or predict the amount of interest, pre-registration would allow the organization to cancel the event due to poor registration.  Organizations permitting pre-registration must include criteria for pre-registration such as a minimum number of entries and cancellation policies in their Tournament Rules.

Where can we hold our Texas Hold'em poker tournament?

There are no restrictions on the kind of venue that can be used to hold a licensed Texas Hold'em poker tournament. The venue you select may have an impact on the success of the event. When selecting a venue, consider cost, space, equipment (e.g., tables and chairs) and location. The licensed organization must retain full responsibility for the operation of the Texas Hold'em poker tournament. There must be a separate play area with a physical barrier between spectators and players and workers.

Do we need to limit the number of players at our Texas Hold’em poker tournament?

No, it is up to the licensed organization to establish the maximum number of participants. The maximum number of players cannot exceed the room occupancy or the equipment capacity.

Does the MGCC set an expense limit?

Yes. Anticipated expenses must be specified on the application. The maximum expense limit is 15% of the anticipated gross revenue (not including any rebuy revenue). Licence fees, playing cards and poker chips are not to be included in this 15% limit. The profit raised for charitable use must be at least 15% of anticipated gross revenue.

Are there any limitations to advertising our Texas Hold’em poker tournament?

Once a licence has been approved, a Texas Hold’em poker tournament can only be advertised in Manitoba.  All advertisements must contain the name of the licensed organization and the licence number.  Advertisements must adhere to federal, provincial and community advertising laws and standards.  If you are advertising on the internet, certain restrictions apply. 

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 the Texas Hold’em poker tournament 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 our anticipated revenue?

No, the prize(s) offered is up to the organization.  The MGCC does not set prize limits however; all prizes offered must be guaranteed.  You must ensure that the profit raised for charitable use is at least 15% of anticipated gross revenue.

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 before a licence is issued.  The MGCC will accept an organization’s current bank statement, an irrevocable standby letter of credit from a financial institution or proof of purchase for any merchandise prize. The MGCC will not accept a third party guarantee for prizes. If all prizes being offered are based on a percentage of tournament fees, or if all prizes are being donated, evidence of sufficient funds is not required.
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 provider of a prize. Contractual agreements are required for each individual prize valued at $500 or more whether it is donated or purchased.
Sample contractual agreement.

Can organizations determine the amount of a prize for a Texas Hold’em poker tournament based on the percentage of sales?

Yes, if the organization has received approval by the MGCC.

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 Texas Hold'em poker tournament event 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.

The supplier we are renting equipment from has offered to help us run our Texas Hold’em poker tournament. Is this permitted?

As the licensee, your organization is responsible for all aspects of the operation of the event. Licensees cannot assign the conduct or management of the Texas Hold’em poker tournament to any supplier. You may hire MGCC registered suppliers to provide equipment and/or staff and to assist in managing the general play at tables.

Should we rent or purchase equipment?

Your decision to rent or purchase equipment may depend on your plans to hold one event or several events. Chips (at least three different denominations), playing cards, tables, and chairs are examples of equipment that are required to run your tournament. Research the cost of renting versus the cost of purchasing before deciding which will most benefit your organization's event. Make sure that your supplier of gaming services is registered with the MGCC.


Can we use poker chips, cards or other equipment purchased from a retail store?

Yes, however licensed organizations must verify that all equipment used is tamper-proof, ensures the integrity of the game and prevents cheating. For example, only the chips sold at the Texas Hold'em poker tournament and the cards dealt by the dealer can be used. You will be required to indicate how the chips you use will be identified to ensure the event is not at risk from cheating. Equipment must be of reasonable quality, properly maintained and replaced regularly.

What are the specifications for the tables we use at our Texas Hold'em poker tournament?

Tables for Texas Hold'em poker tournaments must be large enough to accommodate a dealer and up to ten (10) players. The tables must permit the players to privately examine their cards without disclosing their value to other players.

Can we apply for more than one Texas Hold’em poker tournament?

Yes, organizations may apply for a single event, a limited series of events or an ongoing licence.

We received forms with our Texas Hold’em poker tournament licence package.  What do we do with these forms?

All records relating to the conduct and operation of the Texas Hold’em poker tournament must be kept by the licensee for at least three (3) years.  Event and financial reports must be filed with the MGCC. These are important financial accountability and game integrity measures that the MGCC relies on to monitor and ensure the honesty and integrity of licensed events. Required reports include: event sheets, financial reports, player registration records, rebuy records (if applicable), incident reports and copies of bank statements. The MGCC's Audit Department can help you with these reporting forms, requirements and procedures.

Is there an age restriction for Texas Hold'em Poker Tournaments?

Yes, all tournaments are age restricted. People under 18 years of age are not permitted to play, volunteer or work at any Texas Hold'em poker tournament.

Can we pay our dealers?

Yes, however total expenses cannot exceed 15% of the anticipate revenue (not including rebuys).

Can players deal?

No, players cannot deal. Cards must be dealt by a Texas Hold'em poker tournament dealer. The licensed organization must provide sufficiently trained dealers for each table. Dealers may be volunteers, members of the organization or employees of a registered supplier and may be paid to provide this service.

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