Nonprofit entities must report raffle prizes of at least 300 times the price of the winning wager if the prize value is more than $600 (less the amount paid for the ticket). The charity must withhold 25 percent from the winnings if the total exceeds $5,000. Question: 'Is it wrong to have raffles in the church?' Answer: A raffle is a way to make money by selling tickets, or “chances,” to win a big prize. Usually, the tickets are numbered and the winner is drawn at random, so the more tickets a person buys, the greater his chance of winning.

Question: 'Is it wrong to have raffles in the church?'
Answer: A raffle is a way to make money by selling tickets, or “chances,” to win a big prize. Usually, the tickets are numbered and the winner is drawn at random, so the more tickets a person buys, the greater his chance of winning. Raffles are sometimes used by school groups, civic clubs, and charities as a means of raising money. Some churches and youth groups use raffles to raise money for summer camp, mission trips, or needed equipment. For various reasons, some Christians object to the use of raffles at church.
One of the biggest objections to any kind of raffle, in or out of a church, is that the idea of “chance” draws in many people who should be spending their money more wisely. Studies have shown that the people most likely to buy lottery tickets and raffle chances are those who can least afford them. Money that is needed elsewhere is used to buy handfuls of tickets on the outside chance of winning a prize or a jackpot. Some churches refuse to hold raffles because they don’t want to further the “gambler mentality.”
Another objection to church raffles is that the Bible never mentions gambling or “chance” as a legitimate way to obtain church funds. They say that God’s work should be funded by God’s people through tithes and offerings (e.g., Numbers 18:24; 2 Chronicles 29:31; Malachi 3:10), not coerced through the possibility of winning something. Second Corinthians 9:7 says, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” Purchasing raffle tickets is not giving to the Lord but investing in chance. Tickets are bought in hopes of gaining something tangible in return, which means they are not freewill offerings. The logic is that the church should not rely upon raffle money to meet its needs but should rely upon the Lord to work through the hearts of His people (Deuteronomy 16:17; 1 Corinthians 16:2). Most raffles involve selling tickets to the community at large, in addition to the people of the church, and this also is a cause of concern for some churches who believe that God’s work should be supported by God’s people without depending on the unsaved.
Defenders of raffles in the church say that participants are well aware that their money is going to a good cause and would willingly give it anyway. The raffle just makes it more fun, and the possibility of a reward encourages greater generosity. Some winners donate the prize back to the cause as a means of further supporting the goal. Some also point out that drawing straws or throwing dice was a common practice in Bible times as a way of discerning God’s direction (Leviticus 16:8; Proverbs 16:33). Since the Bible never speaks negatively against raffles or even lotteries, churches should feel free to use them if they so desire.
The greatest example of using “chance” to further God’s work is found in Acts 1:26 when the apostles needed to select another man to replace Judas. They nominated two who met the qualifications of an apostle, prayed for guidance, and cast lots. The lot fell to Matthias. Scholars have debated whether the apostles overstepped God’s plan by choosing their own apostle rather than waiting for His choice, who was clearly Paul (Acts 9:1–15). However, there is no biblical foundation for believing that the apostles were in disobedience when they used this means to determine God’s will. They were clearly seeking the plan of God and were living in obedience to Jesus’ final words to wait for the Holy Spirit (Acts 1:4). Although the apostles’ casting of lots was nothing like a raffle in that no one was seeking a “prize,” raffle supporters still consider that the apostles were depending upon chance to fulfill God’s purposes. The practice of casting lots to determine God’s will is nowhere condemned in Scripture.
As with any decision a church makes, prayer and seeking God should dominate the decision-making process. Since Christ is the head of any true church (Colossians 1:18; Ephesians 4:15), He must be the Lord of every action. We can often discern His will by asking, “If Jesus were sitting in this meeting with us, what would He tell us to do?”
In addition, there are a few more questions worth considering:
• Does Jesus want to fund His programs through raffles instead of freewill offerings?
• Could such fundraising avenues present Christ’s church as people who are greedy and desperate for money?
• Could someone’s reluctance to freely give, coupled with a willingness to spend the same amount on a slim chance of winning a prize, indicate misplaced priorities?
• Does holding a raffle eliminate the opportunity to wait on the Lord and trust Him for financing?
When we have answered these questions, we are in a better position to determine whether or not our church should hold a raffle. Since Christ is the Head of the church, it should be His decision. The rest of the body should always seek His methods for furthering His work.

Electronic Raffles: Licensing

This page is intended to help those applying to run an electronic raffle. Suppliers interested in becoming registered with the AGCO should refer to Charitable Gaming: Suppliers.

The Registrar has put in place an Electronic Raffle Regulatory Framework that allows eligible charitable or religious organizations to be licensed to conduct and manage electronic raffles in Ontario.

Electronic raffles refer to the use of computers for the sale of tickets, the selection of winners and the distribution of prizes in a licensed charity raffle.

For information on the Electronic Raffle Regulatory Framework, please view Information Bulletin No. 89

If you have applied for an electronic raffle in the past, please move down to step 3.

Before your raffle

Determining Eligibility for a Charitable Gaming Licence

The licensing authority you are applying to will determine whether or not your organization is eligible. Charitable registration with Canada Revenue Agency or incorporation as a non-profit organization does not guarantee eligibility for a licence.

Your organization may be eligible for a charitable gaming licence if it provides charitable services to Ontario residents in one or more of the following areas:

• relieves poverty,
• advances education,
• advances religion,
• benefits the community,
• has carried out activities consistent with its charitable purpose for at least one year,
• is located in Ontario,
• is non-profit.

Organizations that only promote the private interests of their members do not qualify for a lottery licence. This may include, but is not limited to:

• Adult recreation or sports
• Individual sport teams
• Unions or employee groups
• Social clubs
• Professional associations
• Political, government, lobbying or advocacy groups

To determine eligibility please include with your application, a copy of each document noted below, that pertains to your charity or foundation:

• Letters patent
• By-laws
• Constitution
• Charter
• Trust deed
• Memorandum/articles of association, signed as required
• Canada Revenue Notification of Registration Letter - If your organization is registered
• Detailed outline of programs/services - What they are, how they are delivered to clients, specific costs, supporting materials, etc
• Current operating budget
• Verified financial statements for the last fiscal year
• List of Board of Directors with contact information
• Annual updated List of Board of Directors
• Changes to governing documents and Canada Revenue status - Includes amendments, supplements, reinstatements, revocations, dissolutions, etc
• Annual verified financial statements, (see Raffle Licence Terms and Conditions, reporting requirements)

If you believe your charity is eligible based on the above information, please continue to step one. If you need more clarification, please contact the AGCO: 416-326-8700 or toll free 1-800-522-2876.

Step 1: Initial Raffle Planning

Details to consider as you are planning your raffle:

• Raffle Location(s):

  • Where will the raffle be held?

  • How many days will the raffle run?

  • What type of raffle will I run?

  • What are the prize(s)?

• Technical solution
  • Will raffle tickets be sold online, in person or both?
  • Has my electronic raffle solution been reviewed and approved by the AGCO?
  • How will prizes be distributed?

Step 2: Review Applicable Terms and Conditions

Please ensure that you read and understand the applicable Terms and Conditions before submitting your application to the AGCO. Terms and Conditions that electronic raffle licensees must comply with include:

Step 3: Application for an Electronic Raffle Licence

Before completing a licence application on iAGCO, please refer to the Raffle Application Requirements for Lottery Licenses Issued by the Registrar of Alcohol and Gaming.

The AGCO requires a minimum of six-weeks to complete the application process for a licence.

The following is a list of the documentation that is required to support your application for an electronic raffle licence. The AGCO may ask you to provide additional information.

• Copy of municipal notification; you must notify the local municipality in writing of your intent to apply for an electronic raffle licence and provide a copy of that written notification to the AGCO with your application
• Rules of Play for the electronic raffle
• Ticket Sample
• List of scheduled events
• Venue floor plan outlining where tickets are to be sold
• Irrevocable standby letter of credit made payable to the Minister of Finance for fixed prize draws over $10,000. Exceptions include electronic 50/50 draws which do not require a letter of credit unless requested by the licensing authority.
• Outstanding raffle licence financial reports (See Raffle Licence Terms and Conditions reporting requirements)
• Outstanding financial reports for other charitable gaming events
• Charities developing their own raffle sales platform will be subject to review and approval by the AGCO’s Technical and Laboratory Services. Please use this Electronic Raffle Solution Review Form to submit your proposed solution for assessment.

TheAGCO requires a minimum two-week written notice for application amendments. AGCO approval is required for application amendments.

Note the use of net proceeds on your application by listing the specific projects or items for which funds will be used. They must fall within your organization’s objects or purposes as outlined in your governing documents. Do not include your mission statement or charitable purpose.

Are Raffles Illegal In Canada

Expired licenses may not be amended or cancelled. If you make changes to your licence application package before you submit it to the licensing authority, each change must be initialed, on each document, by the licence application signers and other signers of that document. Submit changes to your licence application package in writing on your organization’s letterhead, signed by the licence application signers; include supporting documents that are affected.

Step 4: Paying your Licence Fee

Raffle Laws Canada

The licence fee for electronic raffle licences is one per cent of the total prize board.

All payments must be made online through iAGCO by Interac (Visa, MasterCard, Visa Debit or MasterCard Debit). Payments of $30,000 or more must be made by money wire transfer or electronic funds transfer.

Cheques and cash are not accepted.

Step 5: Executing the Raffle

The AGCO has developed a checklist for running a successful electronic raffle as well as the video posted to the top of this page.

The licensee is required to notify the Registrar through iAGCO of any issues encountered during the raffle. For more information, view this video on How to Submit Post-Event and Incident Reports.

AGCO Compliance Officials require access to verify your raffle and review your licence requirements, including:

• Ensuring that your electronic raffle licence is available to the public
• Raffle operators are knowledgeable of the Terms and Conditions (Step 2)
• Electronic raffle system (solution) has been approved by the AGCO
• Your AGCO-approved Rules of Play are made available to all ticket purchasers
• Ticket sales open and close according to the lottery licence
• Any advertising and marketing material meets all AGCO requirements
• Draw results are confirmed
• You are not selling to minors under 18 years of age
• Raffle personnel are knowledgeable of how to direct customers to problem gambling services in Ontario at ConnexOntario

After your raffle

Step 6: Raffle Wrap-up

Raffle Laws Canada Ontario

Once the raffle is complete, the licensee is required to submit the following reports through the regulatory submissions and notifications function in iAGCO:
1. Post-event reporting
2. Notifications

For more information, view the Regulatory Submissions video.

The following documents must accompany the financial report:

• Copies of all deposit slips related to the event
• A list of winners
• Report of any compliance issues using the post event compliance report.

What Are The Laws On Raffles

Please note:

Is It Illegal To Raffle

• The financial report must be filled within 30-days of the date of the last draw. The licensing authority may request additional documents including receipts for expenses incurred.
• The licensee must indicate any prizes which have been donated on the financial report. Do not deduct the value of the donated prizes from the gross receipts.
• Where requested, the licensee must provide an audited financial statement to the licensing authority within 120 days of the request, or such other time limit as may be imposed by the licensing authority.
• Report the use of net proceeds to the AGCO.
• Ensure all proceeds go into the lottery trust account.