O. Reg. 198/00: LOTTERY SCHEMES

Ontario Lottery and Gaming Corporation Act, 1999
Loi de 1999 sur la Société des Loteries et des Jeux de l’Ontario

ONTARIO REGULATION 198/00

LOTTERY SCHEMES

Historical version for the period June 28, 2007 to December 31, 2007.

Last amendment: O. Reg. 283/07

This Regulation is made in English only.

Interpretation and Application

1. In this Regulation,

“vendor” means, with respect to a lottery scheme, a person authorized by the Corporation to sell a lottery ticket or another means of participating in the scheme. O. Reg. 198/00, s. 1.

2. This Regulation does not apply with respect to games of chance conducted at gaming premises. O. Reg. 198/00, s. 2.

Sale of Lottery Tickets, etc.

3. No person, other than the Corporation, a subsidiary of the Corporation or a vendor, shall sell to the public a lottery ticket or another means of participating in a lottery scheme. O. Reg. 198/00, s. 3.

4. (1) Subject to subsection (2), no vendor shall, directly or indirectly, sell a lottery ticket or another means of participating in a lottery scheme for a price other than,

(a) in the case of a lottery ticket, the face amount shown on the ticket; or

(b) in the case of a form of electronic lottery scheme, the amount indicated on the computer terminal. O. Reg. 198/00, s. 4 (1).

(2) The Corporation may authorize a vendor to sell a lottery ticket or another means of participating in a lottery scheme for a price other than the price required by subsection (1). O. Reg. 198/00, s. 4 (2).

5. For the purposes of subsection 13 (2) of the Act (prohibition on sale of lottery tickets to minors), the following documents constitute the prescribed type of documentation:

1. A driver’s licence issued by the Province of Ontario that has a photograph of the person to whom the licence is issued.

2. A Canadian passport.

3. A Canadian citizenship card that has a photograph of the person to whom the card is issued.

4. A Canadian armed forces identification card.

5. A photo card issued under the Liquor Licence Act.

6. Any other document that reasonably appears to be issued by a government, that contains a photograph of the applicable person and that sets out his or her date of birth. O. Reg. 198/00, s. 5.

6. The Corporation may limit the participation of a person or group of persons in a lottery scheme. O. Reg. 198/00, s. 6.

Game Rules for a Lottery Scheme

7. (1) The Corporation shall establish game rules that govern the conduct and management of a lottery scheme. O. Reg. 198/00, s. 7 (1).

(2) The game rules may govern any promotional scheme relating to a lottery scheme. O. Reg. 198/00, s. 7 (2).

(3) The Corporation shall keep a copy of the game rules for lottery schemes at its head office and shall make a copy of the game rules for a lottery scheme available to a person who requests it. O. Reg. 198/00, s. 7 (3).

8. If the Corporation conducts and manages a lottery scheme on behalf of Her Majesty in right of Ontario under an agreement, the Corporation shall do so in accordance with game rules established in accordance with the agreement. O. Reg. 198/00, s. 8.

9. (1) Every person who participates in a lottery scheme is bound by the game rules governing the scheme. O. Reg. 198/00, s. 9 (1).

(2) It is a condition of participating in a lottery scheme that the participant agrees to be bound by the game rules governing the scheme. O. Reg. 198/00, s. 9 (2).

(3) Every vendor who sells a lottery ticket or another means of participating in a particular lottery scheme is bound by the game rules governing the scheme. O. Reg. 198/00, s. 9 (3).

Note: On January 1, 2008, the Regulation is amended by adding the following section:

Management Controls

9.1 (1) The Corporation shall not conduct and manage a lottery scheme involving a lottery ticket or another means of participating in the scheme unless,

(a) it has submitted to the Registrar of Alcohol and Gaming,

(i) a procedure of internal controls for lottery schemes,

(ii) a procedure to ensure the integrity of products used in lottery schemes,

(iii) a procedure for handling complaints from the public with respect to lottery schemes, and

(iv) a procedure governing the conduct of vendors; and

(b) the Registrar of Alcohol and Gaming has approved the procedures mentioned in clause (a). O. Reg. 283/07, s. 1.

(2) In determining whether to approve a procedure mentioned in subsection (1), the Registrar shall have regard to,

(a) the security of the lottery schemes involved and their operations;

(b) the integrity of the lottery schemes involved, including whether compliance with the procedure will minimize the potential for error and fraud and can reasonably be expected to maintain public confidence in gaming in Ontario;

(c) whether the procedure requires that records and reports for the lottery schemes involved will be accurate, reliable and prepared in a timely manner; and

(d) the operational efficiencies of the Corporation. O. Reg. 283/07, s. 1.

(3) The Corporation shall comply with the procedures mentioned in subsection (1) that the Registrar has approved when it conducts and manages a lottery scheme involving a lottery ticket or another means of participating in the scheme. O. Reg. 283/07, s. 1.

See: O. Reg. 283/07, ss. 1, 4.

Prizes

10. A person is not entitled to claim a prize in a lottery scheme if,

(a) the person is or was ineligible to participate in the scheme;

(b) the ticket or other evidence of participation or attempted participation is unissued, not paid for, illegible, mutilated, altered, counterfeited or forged in whole or in part; or

(c) the ticket or other evidence of participation or attempted participation is defective, misprinted, incomplete or produced in error. O. Reg. 198/00, s. 10.

11. (1) It is a condition for collecting a prize in a lottery scheme that the participant satisfy the Corporation that the participant is a winner. O. Reg. 198/00, s. 11 (1).

Note: On January 1, 2008, subsection (1) is revoked and the following substituted:

(1) It is a condition for a participant to collect a prize in a lottery scheme that the participant,

(a) satisfy the Corporation that the participant is a winner; or

(b) satisfy the arbitrators that the participant is a winner if the right to the prize has been subject to an arbitration under section 11.2 and the Corporation has not paid the prize at the time that the arbitrators make their determination in the arbitration. O. Reg. 283/07, s. 2.

See: O. Reg. 283/07, ss. 2, 4.

(2) The participant is not eligible to collect the prize unless he or she agrees to the following conditions:

1. The Corporation is authorized to publish in any medium the participant’s name and address and a current photograph, and the participant will not make a claim against the Corporation for broadcasting, printing, royalty or other rights.

2. The participant will give the Corporation, upon request, a valid release for the payment of the prize and will not make any further claim in respect of that prize. O. Reg. 198/00, s. 11 (2).

Note: On January 1, 2008, the Regulation is amended by adding the following sections:

11.1 (1) If a person, other than the Corporation, disputes the right of a participant to claim a prize or a portion of a prize in a lottery scheme, then, as a condition for collecting or retaining the prize, the participant and the person shall submit to any investigations that the Corporation conducts into the issue of the right to the prize or the portion of the prize. O. Reg. 283/07, s. 3.

(2) If a person, other than the Corporation, disputes the right of a participant to claim a prize or a portion of a prize in a lottery scheme and if the prize or the portion of the prize is valued at $10,000 or more, then the participant and the person may agree to submit the issue of the right to the prize or the portion of the prize to the dispute resolution mechanism described in section 11.2 after the investigations mentioned in subsection (1), if any, have been completed. O. Reg. 283/07, s. 3.

11.2 (1) If the issue of the right of a participant in a lottery scheme to a prize or a portion of a prize is submitted to resolution under this section, the person disputing the right of the participant shall give written notice of the dispute to the participant, the board of the Corporation and the chair of the board of the Alcohol and Gaming Commission of Ontario. O. Reg. 283/07, s. 3.

(2) The parties to the dispute shall have 45 days from the giving of the notice to resolve the dispute among themselves. O. Reg. 283/07, s. 3.

(3) If the parties resolve the dispute to their reasonable satisfaction within the 45 days, the parties shall file a notice of resolution with the board of the Corporation and the chair of the board of the Alcohol and Gaming Commission of Ontario and the dispute shall not be subject to an arbitration under this section. O. Reg. 283/07, s. 3.

(4) If no resolution of the dispute is achieved under subsection (3) and the person who gave the notice mentioned in subsection (1) still wishes to resolve the dispute, then,

(a) the dispute shall be arbitrated under the Arbitration Act, 1991, except to the extent that the application of that Act is expressly modified by this section; and

(b) the agreement to submit the dispute to the application of this section constitutes an arbitration agreement as defined in that Act. O. Reg. 283/07, s. 3.

(5) The persons subject to an arbitration under this section shall be the parties to the dispute, including any persons who have possession of the lottery ticket or other means of participating in the lottery scheme and any persons who have received the prize or any portion of it. O. Reg. 283/07, s. 3.

(6) The arbitrators of the dispute shall be,

(a) the members of the board of the Alcohol and Gaming Commission of Ontario that the chair of that board appoints; or

(b) the other persons that the chair of that board designates. O. Reg. 283/07, s. 3.

(7) The chair of the board of the Alcohol and Gaming Commission of Ontario shall establish and publish rules for the conduct of an arbitration under this section. O. Reg. 283/07, s. 3.

(8) The rules shall form part of the arbitration agreement. O. Reg. 283/07, s. 3.

(9) The Corporation shall give notice to the arbitrators whether it has conducted any investigations described in subsection 11.1 (1) with respect to the subject matter of the dispute and if so, shall provide the arbitrators with the results of the investigations and a summary of their key findings once the investigations have been completed. O. Reg. 283/07, s. 3.

(10) Not before receiving the notice and the material described in subsection (9), the arbitrators shall determine what persons, if any, are entitled to the prize or portion of the prize that is the subject of the dispute and may order,

(a) the Corporation to make payments to the persons that the arbitrators determine are entitled to the prize or portion of the prize, if the Corporation has not paid the prize or portion of the prize and has received and acknowledged the notice mentioned in subsection (1); or

(b) the persons who have received the prize or portion of the prize to pay it to the other persons who the arbitrators determine are entitled to it in accordance with the order, if the Corporation has paid the prize or portion of the prize. O. Reg. 283/07, s. 3.

(11) Despite the Arbitration Act, 1991, the arbitrators may, on their own initiative or on the motion of any party, dismiss any person’s claim to have an interest in the prize paid by the Corporation or any portion of it without holding a hearing, if they are of the opinion that,

(a) the claim is not made in good faith or is frivolous or vexatious;

(b) the claim is made only for the purpose of delay;

(c) the claimant’s history of commencing claims amounts to an abuse of process; or

(d) the claim is not supported by sufficient evidence. O. Reg. 283/07, s. 3.

See: O. Reg. 283/07, ss. 3, 4.

12. (1) The Corporation shall not pay a prize or a purported prize in a lottery scheme if the payment of the prize could cause the total amount of the prizes to be won in the scheme, as set out in the game rules for the scheme, to be exceeded. O. Reg. 198/00, s. 12 (1).

(2) Subsection (1) applies despite any statement to the contrary that is set out in or implied by an advertisement, a lottery ticket or another form of evidence of participation in the lottery scheme. O. Reg. 198/00, s. 12 (2).

13. (1) The Corporation shall establish and maintain a reserve fund for prizes in lottery schemes. O. Reg. 198/00, s. 13 (1).

(2) The Corporation shall maintain in the reserve fund an amount at least equal to the sum of the prizes available to be won in each lottery scheme to which the fund relates. O. Reg. 198/00, s. 13 (2).

(3) The monetary value of a prize that is not a money prize is the cost to the Corporation of the prize, as calculated by the Corporation. O. Reg. 198/00, s. 13 (3).

(4) No payments may be made from the reserve fund except payments of prizes to winners in the lottery schemes to which the fund relates. O. Reg. 198/00, s. 13 (4).

Cancellation, etc., of a Lottery Scheme

14. (1) The Corporation may suspend, recall, withdraw or cancel all or part of a lottery scheme at any time before the period for claiming prizes expires. O. Reg. 198/00, s. 14 (1).

(2) The Corporation may impose such conditions on the suspension, recall, withdrawal or cancellation of all or part of a lottery scheme as it considers appropriate. O. Reg. 198/00, s. 14 (2).

(3) Upon suspending, recalling, withdrawing or cancelling all or part of a lottery scheme, the Corporation shall not pay to any participant in the scheme an amount greater than the amount the participant paid to a vendor in order to participate in the scheme. O. Reg. 198/00, s. 14 (3).

(4) Upon suspending, recalling, withdrawing or cancelling all or part of a lottery scheme, the Corporation is not liable to reimburse a participant in the scheme unless the the participant’s ticket or such other evidence of his, her or its participation or attempted participation as the Corporation may require is returned to the Corporation. O. Reg. 198/00, s. 14 (4).