What is Charitable Gaming?

Under the Criminal Code of Canada all gaming activity is essentially illegal. However, there are exceptions, such as licensed gaming, regulated by a licensing and regulatory authority.

Charitable Gaming means lottery schemes which are licensed and operated to provide benefit to charitable or religious organizations. Bingos, Texas Hold'em Poker Tournaments, Monte Carlo's, Breakopens and Raffles are the types of lottery schemes that are be considered charitable gaming.

The proceeds of these activities must benefit a charitable organization, as per Section 207 of the Criminal Code of Canada. The proceeds from such gaming must be used for approved charitable or religious objects and purposes.

In general, the use of proceeds is based on eligibility – if the organization is eligible, it may use the proceeds for its charitable purpose.

The licensing authority must also be satisfied that it is only carrying out charitable activities and those charitable activates fall within the organization’s objects. The test of charitableness is both a legal one and a factual one.

The Criminal Code of Canada does not provide guidelines on some key terms, such as charitable purposes, to which proceeds raised by charitable gaming activities must be applied. IGR, therefore, has adopted common law principles which have been used by the Supreme Court of Canada. These principles identify four categories of classification used to determine what constitutes a charitable or religious object or purpose:

1. Relief of Poverty
2. Advancement of Education
3. Advancement of Religion
4. Other Purposes Beneficial To The Community

(see Eligibility and Use of Proceeds Polices for detailed criteria)

A BRIEF HISTORY OF GAMING IN CANADA