NLIS 4
May 8, 2002
(Government Services and Lands)

 

Minister meets with fundraising association to discuss ticket lottery rules

Walter Noel, Minister of Government Services and Lands, and officials from the Trade Practices and Lottery Licencing Division met with representatives of the Association of Fundraising Professionals this morning to discuss the province�s ticket lottery regulations.

While there are 29 rules for ticket lotteries, discussion centred around discounted tickets, early bird draws, sale of share portions of tickets and accounting procedures.

Minister Noel said: "We had a very productive meeting and some concerns were immediately addressed. We also advised the representatives that we are willing to meet with licensees, in large or small groups at any time, to discuss suggestions for change.

"One thing became clear. We can and should consult more. And we have agreed to meet more often. A larger group of fundraisers is meeting this afternoon and they will bring the results of that meeting back to the department.

"We regulate ticket lotteries to ensure charities receive the funding to which they are entitled. We also regulate to ensure purchasers feel comfortable when buying tickets from a regulated and licenced draw."

A copy of Schedule D, Rules for Ticket Lotteries follows:

Media contact: Rick Callahan, Communications, (709) 729-4860.

 

Rules for ticket lotteries - Schedule "D"

The total value of tickets sold for any one event shall not exceed 12 times the total retail value of the prizes

1. For a ticket lottery to be approved there shall be a reasonable expectation of a 50% return after expenses to the licensee.

2. For a ticket lottery with a potential prize payout of $100,000 or more a detailed business plan shall be submitted with the application detailing the following:

  • advertising/marketing;
  • details of the prize including if the prize has been purchased or if on consignment;
  • ticket distribution;
  • staffing and salaries/commission; and
  • budget and projected profits.

3. All tickets shall be consecutively numbered. Tickets shall be commercially printed where the prize value is greater than $500.

4. (1) Each ticket shall consist of 2 sections, each severable from the other, and the section to be delivered to the purchaser shall contain the following:

  • the name of licensee;
  • the draw location and dates;
  • the description, number and retail value of the prizes, whether donated or purchased;
  • the ticket number;
  • the total number of tickets printed;
  • the selling price of the ticket;
  • the licence number; and
  • the name of the printer,

    (2) The section to be retained by the licensee shall contain the following:

  • place for the name, address and telephone number of the purchaser;
  • the ticket number; and
  • the licence number.

6. For ticket lotteries where tickets are sold and the draw is conducted on the same day at a single premise and the potential prize payout exceeds $500, only paragraphs 5 (a), (d), (f), (g), (h) and 5 (2)(b) shall be required.

7. For ticket lotteries where tickets are sold and the draw is conducted on the same day at a single premises, and the potential prize payout does not exceed $500, only paragraphs 5 (1)(d) and 5 (2)(b) shall be required. Tickets shall be retained for a period of one week after the draw.

8. With the exception of ticket lotteries where tickets are sold and the draw is conducted on the same day at a single premises and the potential prize payout does not exceed $500, a draft or hand drawn facsimile of the proposed ticket shall accompany the application and a true copy of the ticket for each series shall be forwarded immediately upon printing to the division.

9. Where the presence of the holder of a ticket is a required condition to win, this shall be stated on the ticket, and participants shall be entitled to be present at the drawing without additional charge.

10. Multiple discounted prices shall not be allowed, unless separate and distinct series are used, i.e. either a different colour or another method that ensures financial accountability that has been approved by the division. Tickets in each price category shall have a separate numbering sequence.

11. When a series of draws occurs according to a fixed schedule, i.e. a cash calendar, the ticket price can be reduced based upon the percentage of prize value remaining. Using the cash calendar as an example, each month, the ticket price can be reduced by 1/12th. The licensee shall state the discount procedure in the ticket rules.

12. Unsolicited tickets shall not be distributed to the public.

13. Ticket portions or shares shall not be offered for sale.

14. The value of the prize shall include the amount of any duty, taxes, sales taxes, and other costs. Prizes shall be awarded free and clear of any mortgages, liens, or any other encumbrances.

15. The prize is awarded at the location of the draw, unless otherwise stated.

16. The prize shall be valued by a qualified independent third party if it is a collectible or antique prize purchased by, or donated to the licensee.

17. The licensee may accept cheques or credit payments, and shall be responsible for ensuring that the proceeds from ticket sales are validated before the ticket is entered into the draw.

18. Licensees shall not operate early bird draws.

19. Draw dates may be changed on written approval of the division. Extensions shall not be granted after ticket sales have commenced.

20. The sequence of drawing to award prizes shall be announced before the commencement of the draw. All winning tickets shall not be returned for future draws unless otherwise stated by the licensee.

21.All ticket draws shall be conducted before 2 witnesses who sign a confirmation of their presence for each lottery event.

22. Where the winner is under 18 years of age, the licensee shall deliver the prize to the legal guardian or public trustee.

23. Winners of prizes shall be advised of the results of the draw by telephone, registered mail, or in person. The notice shall indicate how the prize is to be claimed. Prizes shall be distributed to the winning ticket holders as soon as possible after the date of the ticket draw.

24. For prizes over $500, the licensee shall publish and submit along with the financial report, the winning numbers, names and addresses of the winners of prizes.

25. Where a prize is over $500 and is not claimed within 60 days of the draw, another draw shall be made. Where the prize is again unclaimed, a subsequent draw shall be made within 30 days. Unclaimed prizes after this, and unclaimed prizes with a value of $500 or less, shall be included in the net proceeds to be used for, or paid to the charitable or religious objects, as approved in the application.

26. A commission may be paid for the sale of tickets, not to exceed 20% of gross receipts.

27. The licensee shall retain all unsold tickets and stubs of sold tickets for a period of one year from the date of the last draw.

28. The licensee shall retain, as part of its gaming records, the purchase invoices for all tickets, and the invoices shall specify the first and last of the sequential numbers of the tickets for each type of ticket.

29. Only direct expenses required to operate the ticket lottery shall be deducted from gaming revenue.

2002 05 08                               3:00 p.m.


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