O. Reg. 283/07: LOTTERY SCHEMES

 

ontario regulation 283/07

made under the

ontario Lottery and GAming Corporation Act, 1999

Made: June 6, 2007
Filed: June 28, 2007
Published on e-Laws: June 28, 2007
Printed in The Ontario Gazette: July 14, 2007

Amending O. Reg. 198/00

(Lottery Schemes)

1. Ontario Regulation 198/00 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).

(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.

(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.

2. Subsection 11 (1) of the Regulation 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.

3. 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.

(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.

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.

(2) The parties to the dispute shall have 45 days from the giving of the notice to resolve the dispute among themselves.

(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.

(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.

(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.

(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.

(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.

(8) The rules shall form part of the arbitration agreement.

(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.

(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.

(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.

4. This Regulation comes into force on the later of January 1, 2008 and the day this Regulation is filed.