Gaming

Eligibility

Licences are issued to charitable or religious organizations that are eligible. A First Nation itself or the Band cannot apply for a licence to conduct charitable gaming or for charity status, this must be done by the specific on-reserve charity group. The First Nation members or representatives can form or assign individuals responsible for the licence application and reporting requirements for the charity.

Upon applying for a licence to engage in charitable gaming on-reserve, the charitable organization will have to ensure that eligibility is met. Eligibility requirements are outlined generally below. Subsequently, the charity must also ensure that the funds raised are expended on the purposes that were indicated in the license application and are consistent with IGR's use of proceeds policy.

The acronym used to identify the basic eligibility for licencing is “PERC” which translates to the following:


Poverty

 -

Relief of

Education

 -

Advancement of

Religion

 -

Advancement of

Community

 -

Other purposes beneficial to

Charitable or religious groups applying for a license must be structured in a manner acceptable to IGR. The group must also be able to prove a record of active delivery of a charitable or religious service or program to the community by providing a declaration as proof of the group's charitable purposes. Further, the charity shall demonstrate a community need for the service or program it delivers.

In demonstrating the community's need for the services or program being delivered, the charity shall  demonstrate that:
    

A significant segment of the community benefits from the program/service it delivers and must be reasonably available to all members of the general public who qualify or wish to participate;

The programs/services offered are either unique to the community or fufill a need which would otherwise not be met in the community;

Community benefit is provided when a service or program is delivered to a significant segment of the community in one of the following areas :
  a. Relief of Poverty
   

    1. i. Relief of the disadvantaged;
      ii. Social services and educational programs for the emotionally or physically distressed.
  b. Advancement of Education
 

 

    1. i. Student scholarships;
      ii. Aid to schools;
      iii. Aid to libraries;
      iv. Aid to museums;
      v. Aid to the arts; or
      vi. Aid to the preservation of cultural heritage.
  c. Advancement of Religion
  d. General Benefit to the Broad Community
   

    1. i. Make improvements to the quality of health;
      ii. Support medical research;
      iii. Aid medical treatment programs;
      iv. Supply a facility for the community's use; or
      v. Support eligible competitive amateur athletics.

The sub-numbers above only provide example of what may be considered in the application for an on-reserve charitable gaming license. A more extensive list is available in IGR's Charitable & Religious Groups-Basic Eligibility policy.

Further to the above, on-reserve charities must support eligible initiatives, therefore, the “shopping list” content of any and all First Nations' charities that may be supported by on reserve gaming activity is extremely important to the on-going operations and success of the First Nations' charities licensed by IGR.

Through consultations IGR has sought information and input from the First Nations on the types of on-reserve charities there would be applying for a license and generally what the on-reserve charitable gaming funds should be used to support. This exercise has assisted IGR in determining the scope of the policy needed to ensure relevancy to the First Nations.

Use of Proceeds

Use of proceeds raised through on-reserve gaming activities is an area of gaming regulation that is highly critical to the on-going successful operations of the on-reserve charities. IGR's Use of Proceeds Policies will guide the First Nations and IGR in ensuring that on-reserving charitable gaming revenue is utilized by the charitable organizations for the purposes intended.

The Use of Proceeds Policy is based upon the principle that all gaming “gross revenue” or all monies raised from charitable gaming shall be spent on prizes, operating expenses and charitable, religious objects or purposes as outlined in the relevant policies and approved by IGR.

In short, gross revenues from on-reserve gaming activities may be spent on the following:
    

Approved charitable gaming event prizes;
Gaming event operating expenses; and,
Charitable or religious objects or purposes.

The use of proceeds for on-reserve bingos, raffles and breakopens will vary slightly in the allowable gaming event expenses simply because of the differing operations and related costs for the different events.

As provided for in IGR's Use of Proceeds Policies, gaming proceeds, in accordance with Section 207(1)(b) of the Criminal Code of Canada, are to be used only for Charitable or Religious Objects or Purposes (CROP).

Charitable, religious objects or purposes is the basic criteria that organizations or groups must meet in order to be eligible. The licensing authority utilized by the First Nation will have a policy that will outline the “approved objects” for the use of proceeds. Further, the objects must be essential to and consistent with the delivery of the group's charity or religious programs.