O.C. 436-2024, Act Respecting Lotteries and Amusement Machines, Lottery Scheme – Amendment, 13 March 2024, introduces revisions to the Lottery Scheme Rules governed by Québec’s Act Respecting Lotteries and Amusement Machines (chapter L-6). These amendments mainly focus on updating conditions for lottery schemes and setting clearer criteria for obtaining and maintaining licences to operate such schemes.

One of the key changes involves modifications to definitions, clarifying that the definitions outlined in the Lottery Scheme Regulation (chapter L-6, r. 11.1) apply. Additionally, the heading of Title II now emphasizes both the rules and conditions for acquiring a licence. Notably, the eligibility criteria for applicants have been clarified, specifying that organizations or non-profit entities such as fairs or exhibitions can apply for licences. In the case of individuals, applicants must be adults, Québec residents, and either Canadian citizens or permanent residents as defined by the Immigration and Refugee Protection Act.

A new section (2.1) mandates that any individual designated as a representative for an applicant must have sufficient knowledge of lottery scheme conduct and management, ensuring that applicants are adequately represented by those who are prepared for the responsibilities of managing a lottery.

The amendments also introduce new documentation requirements for both individual and group licence applications. Umbrella organizations representing multiple entities must submit specific documents, such as resolutions designating representatives and attestations confirming that all organizations within the group share similar charitable or religious purposes. Group licences will be issued in the name of the umbrella organization, with the licence conditions applying to each group member. Amendments to section 4 standardize the information required for class A and class B lottery schemes, including types of lotteries, drawing methods, descriptions of charitable or religious purposes, and projected gross revenues.

The regulation emphasizes financial and operational transparency, with section 27 requiring that class B lottery scheme licence holders account for funds separately from their general accounting. This change underscores the government’s focus on financial accountability. Additionally, administrative expenses must not exceed the net profits of the scheme, except for lotteries conducted at public places of amusement and wheels of fortune, ensuring that most of the revenue is directed toward charitable purposes.

Specific restrictions have been imposed on Class C lottery schemes, which are limited to lotteries held at public places of amusement. These lotteries now have a gross annual revenue cap of $5,000, and tickets must be sold and winners drawn on the same day. Furthermore, ticket prices are capped at $2, and electronic schemes cannot be used for conducting or managing such lotteries. Prizes are also restricted to a maximum of $500 per day.

Quebec (MO 436-2024) March 27, 2024