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HomeMy WebLinkAboutLGS-001-26Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: January 12, 2026 Report Number: LGS-001-26 Authored By: Submitted By: Reviewed By: Report Subject: Lisa Hogle, Lottery Licensing Clerk Rob Maciver, Deputy CAO/Solicitor, Legislative Services Mary-Anne Dempster, CAO Lottery Licensing By-law Update Recommendations: 1.That Report LGS-001-26, and any related delegations or communication items, be received; 2.That the By-law attached to Report LGS-001-26, as Attachment 1, repealing and replacing Clarington’s Lottery Licensing By-law, be approved; 3.That the By-law attached to Report LGS-001-26, as Attachment 2, amending the Delegation of Authority By-law, be approved; and 4.That all interested parties listed in Report LGS-001-26 , be advised of Council’s decision. Bylaw #: Resolution #: GG-009-26 Municipality of Clarington Page 2 Report LGS-001-26 Report Overview 1. Background 1.1 Clarington has been licensing lotteries to charitable and non-profit organizations since 1974. The lottery licensing by-law was reviewed in 1987 and again in 1994 but hasn’t been reviewed since and needs to be updated to reflect administrative adjustments and changes to provincial regulations. 1.2 By-law 94-30 was amended by By-law 98-28 (updating a fee and indicating that the organization had to have a “home base in the Municipality of Clarington”), and By-law 2010-096 (removing Section 3(c) – that lottery licensing applications were to be submitted to Durham Regional Police prior to issuing the licence). 1.3 Clarington’s website contains information about eligibility requirements for lotteries and organizations. 1.4 Applications for lottery licenses are processed through the Service Clarington Portal. The Municipality requires a minimum of two weeks to process standard lottery applications and a minimum of 30 days for first-time applicants to complete their eligibility review. 1.5 Lottery proceeds continue to be a large source of revenue for participating charitable and non-profit organizations. 2. Legislative Authority 2.1 The Criminal Code of Canada provides the foundation for regulating lotteries and charitable gaming. 2.2 For lottery licensing, Ontario municipalities are governed by the Alcohol and Gaming Commission of Ontario (AGCO). Municipalities derive their authority, operational standards, compliance requirements, eligibility criteria, usage of proceeds, and reporting frameworks from the Lottery Licensing Policy Manual (LLPM). 2.3 Additionally, the Order-in-Council 208/2024 confirms the Alcohol and Gaming Commission of Ontario (AGCO) and municipalities’ authority to license various charitable lottery schemes under Criminal Code authority. Municipality of Clarington Page 3 Report LGS-001-26 2.4 Municipalities can license the following lottery events:  Bingo events with a prize board $5,500 and under  Media Bingo Events  Non-Electronic Raffles with a total prize value of $50,000 and under  Break Open licences not licensed by the province  Bazaars 2.5 The Alcohol and Gaming Commission of Ontario is responsible for issuing the following:  Bingo events with prize board over $5,500  Super jackpot games  Raffle for total prizes over $50,000  Electronic raffles (any prize value)  Provincial break open  All Monte Carlo events  All lottery schemes conducted in unorganized territories  All lottery schemes at a designated Fair or Exhibition or at a Public Place of Amusement  Break Open Ticket Sellers 3. Review 3.1 Staff reviewed lottery licensing by-laws from other municipalities and updated wording in the by-law to provide more clarity and consistency. 4. Proposed Changes Definitions 4.1 The definition section of the by-law has been updated. Authority 4.2 The Authority section has been added to explain that the Clerk is appointed the Lottery Licensing Officer for the Municipality of Clarington and to reference the Delegation of Authority by-law. Licensing Requirements 4.2 The requirements of an Eligibility Review have been included in the update for clarity and in accordance with existing Provincial Standards. Municipality of Clarington Page 4 Report LGS-001-26 Fees 4.3 The lottery licensing fees have been removed from the by-law and replaced with a reference to the User Fee By-Law, as part of the January 1st update to the User Fee By- Law. 4.4 The minimum fee of $10.00 has been removed from the By-law in accordance with provincial standards, that the maximum fee that may be charged for a licence is 3% of the total prize value. 5. Financial Considerations Not Applicable. 6. Public Considerations 6.1 Charitable and non-profit organizations continue to benefit from the proceeds derived from lotteries. 7. Concurrence Not Applicable. 8. Conclusion 8.1 It is respectfully recommended that Council approved the attached draft by-laws regarding the licensing of lotteries within the Municipality of Clarington. Staff Contact: Lisa Hogle, Lottery Licensing Clerk, 905-623-3379 or lhogle@clarington.net Attachments: Attachment 1 – Draft Lottery Licensing By-Law Attachment 2 – Draft Amending Delegation of Authority By-law Interested Parties: The following interested parties will be notified of Council's decision : Association of Hospital Volunteers Big Brothers Big Sisters Municipality of Clarington Page 5 Report LGS-001-26 Bethesda House Bowmanville Older Adults Association Camaros Baton Club Catholic Women’s League – St. Joseph’s Church CDKL5 Central Public School Bowmanville Clarington Ravens Clarington Swim Club Duke of Cambridge School Holy Family Jury Lands Foundation Kendal Lions Club Legion Ladies Auxiliary Newcastle Village Minor Hockey Association Royal Canadian Air Cadets - 172 Bowmanville Squadron Starfish Parent Group St. Josephs Church Bowmanville United Way Durham Waverly Public School Attachment 1 to Report LGS-001-26 If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. The Corporation of the Municipality of Clarington By-law 2026-NN Being a by-law to provide for the issuance of licences to manage and conduct lotteries, including bingo, break open ticket (Nevada), lottery schemes at bazaars and raffles. Whereas the Government of Ontario passed an Order-in-Council 208/2024, delegating its authority to license charitable gaming events to the Alcohol and Gaming Commission of Ontario and municipal councils; And Whereas the terms and conditions prescribed by the Province of Ontario provide that a municipal council may issue a licence authorizing a charitable or religious organization to manage and conduct lotteries; And whereas municipal councils may licence bingo events with prize boards up to $5,500, non-electronic raffle lotteries for total prizes up to $50,000, Bazaar lotteries which include wheels of fortune with a maximum bet of $2.00 and some break-open ticket lotteries; And whereas the Council of the Corporation of the Municipality of Clarington deems it in the best interest of the inhabitants of the Municipality to issu e such licences, subject to certain terms and conditions imposed by the Province and the Municipality; Now therefore, the Council of the Corporation of the Municipality of Clarington enacts as follows: Definitions 1. For the purposes of this by-law, unless stated otherwise or the context requires a different meaning: 1.1 "Bingo lottery" means a bingo lottery scheme in which the total value of all prizes to be awarded within the operation of a single occasion lottery does not exceed $5,500 cash or merchandise at equivalent market retail value; 1.2 "Break open ticket (Nevada) lottery" means a lottery where consideration is given for a chance to win instant prizes or prizes determined by revealing a specified arrangement of numbers or symbols on a break open ticket. The “Schedule of Approved Break Open Ticket Types” identifies those tickets that Attachment 1 to Report LGS-001-26 are approved by the Registrar of the AGCO for sale in Ontario under the expense maximums model. 1.3 “Bazaar” means a lottery event where any combination of the following lotteries may be conducted:  a raffle lottery not exceeding $50,000 in prizes  a bingo lottery not exceeding $5,500 in prizes and  a maximum of three wheels of fortune where individual bets are no more than $2; 1.4 “Charitable or religious organization" means an organization which performs services of public good or welfare without profits 1.5 "Charitable object or purpose" means any object or purpose relating to:  the relief of poverty.  the advancement of education.  the advancement of religion; or  any other purpose beneficial to the community; 1.6 "Clerk" means the Municipal Clerk of the Corporation of the Municipality of Clarington or their designate; 1.7 "Council" means the Council of the Corporation of the Municipality of Clarington; 1.8 “Licensee” means the person licensed under this by-law or the person required to be licensed under this by-law 1.9 “Lottery” means any scheme that has the following three components:  A prize;  A chance to win the prize; and  Consideration or a fee For the purpose of this By-law Raffle, a Bingo, a Bazaar and Break-Open tickets are all considered lotteries. Attachment 1 to Report LGS-001-26 1.10 “Municipality" means the Corporation of the Municipality of Clarington. 1.11 “Raffle” means a lottery scheme where tickets are sold for a chance to win a prize at a draw, and includes 50/50 draws, elimination draws, calendar draws and “rubber duck” races. Authority 2. Clarington’s Delegation of Authority By-law indicates who is appointed the Lottery Licensing Officer for the Municipality of Clarington. Application 3. Before making an application to conduct and manage a lottery, an organization shall complete an Eligibility Review. The Clerk shall determine if the organization is eligible to conduct and manage lotteries. 4. An application for a licence to conduct and manage a lottery shall be submitted to the Clerk. If the application complies with all Provincial and Municipal regulations a licence will be issued. Prohibitions 5. No person or organization shall manage or conduct a lottery without a valid licence. 6. No person or organization shall conduct a lottery event when a licence has been suspended or cancelled. Fees 7. Every organization that has applied and been approved to manage and conduct a lottery shall submit the applicable licence fee, payable to the Municipality of Clarington as noted in the User Fee By-Law. Terms and Conditions 8 Each licensee shall be subject to the following terms and conditions: 8.1 The licensee shall comply with sections 206 and 207 of the Criminal Code of Canada 8.2 The licensee shall comply with the provisions of Order-in-Council 208/2024; 8.3 The licensee shall comply with all the terms and conditions set out or attached to the licence; 8.4 The licensee shall comply with all provincial and municipal policies and procedures related to lottery’s; and Attachment 1 to Report LGS-001-26 8.5 The licensee shall conduct or allow to be conducted only the type of lottery event or events provided in the application and the licence . 9 Notwithstanding the terms and conditions prescribed by the Province of Ontario relating to the management and conduct of a break open ticket (Nevada) lottery, a charitable or religious organization shall be allowed to conduct a break open ticket lottery in a commercial or retail outlet subject to the following conditions 9.1 The licensee shall conduct or allow to be conducted only the type of lottery event or events provided in the application and the licence 9.2 The sale of tickets shall be limited to only one location within the boundaries of the Municipality. 9.3 The written authorization and approval of the owner of the premise from which the tickets are to be sold shall accompany the application to conduct the br eak open ticket (Nevada) lottery; 9.4 A copy of the Provincial Registration Number of the owner of the premise from which the tickets are to be sold shall accompany the application to conduct the break open ticket (Nevada) lottery; Licence Suspension and Cancellation 10 The Clerk may suspend, cancel or refuse to issue a licence under the authority of this by-law for the breach of any term or condition prescribed by the Province of Ontario, the Criminal Code of Canada, an Order-in-Council or any by-law of the Municipality. Short Title 11 This by-law may be referred to as the “Lottery Licensing By-law”. Repeal 12 The following by-laws are hereby repealed, effective the date of passing of this by- law:  By-law 94-30  By-law 98-28  By-law 2010-096 Effective Date 13 That this by-law shall come into force and effect on the date the by-law is deemed passed under Part VI of the Municipal Act. Attachment 1 to Report LGS-001-26 Passed in Open Council this XX day of MMMM, YYYY. _____________________________________ Name, Mayor _____________________________________ Name, Municipal Clerk By signing this by-law on XXXX XX, YYYY, Mayor FIRST LAST NAME will not exercise the power to veto this by-law and this by-law is deemed passed as of this date. Attachment 2 to Report LGS-001-26 Page 1 of 3 If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. The Corporation of the Municipality of Clarington By-law 2026-XXX Being a By-law to amend By-law 2024-042, the Delegation of Authority By-law, a by-law to delegate the add the Municipal Clerk’s appointment as the Lottery Licensing Officer Whereas, the Government of Ontario passed an Order-in-Council 208/2024, delegating its authority to license charitable gaming events to the Alcohol and Gaming Commission of Ontario and municipal councils. And whereas, arising out of Report LGS-026-24, the Council of the Municipality of Clarington has deemed it appropriate to delegate the Municipal Clerk as the Lottery Licensing Officer for the Municipality of Clarington. Now therefore the Council of the Municipality of Clarington amends the Delegation of Authority By-law, By-law 2024-042, as follows: Attachment 2 to Report LGS-001-26 Page 2 of 3 1. That a new row, with the following wording, be added to Schedule “C” of By-law 2024-042. Council’s Attachment 2 to Report LGS-001-26 Page 3 of 3 Effective Date 2. That this by-law shall come into force and effect on the date the by-law is deemed passed under Part VI of the Municipal Act. Passed in Open Council this XX day of MMMM, YYYY. _____________________________________ Adrian Foster, Mayor _____________________________________ June Gallagher, Municipal Clerk By signing this by-law on XXXX XX, YYYY, Mayor FIRST LAST NAME will not exercise the power to veto this by-law and this by-law is deemed passed as of this date.