Consumer Tips

Prize draws

Is It Gaming? (or skill based)

Generally, for an activity to be considered gaming the following three elements must be present:
1. Consideration (players pay or exchange something of value to be eligible)
2. Chance - the outcome is not pre-determined
3. Prize (money or anything of any value)
Determining whether an activity is chance or skill can be difficult to assess. The following have been found to be adequate tests of skill. Estimating the number of beans in a jar. A four step mathematical question. Estimating the time it would take for a barrel to travel a specified distance down a river. The following examples were found to be inadequate - shooting a turkey at 50 yards, a potato peeling contest, estimating how many passengers would be carried on a railway at a future date.
We determine whether or not events/schemes are eligible for a gaming license - but even if we determine an event is not eligible for a gaming license, this does not mean it would not be considered gaming under the criminal code of Canada.
The Gaming Policy & Enforcement branch is not in a position to provide expert advice regarding the legality of your proposed event. We encourage organizations to seek independent legal counsel for interpretation of the applicable laws.

Door Prize Question

Generally, for an activity to be considered gaming the following three elements must be present:
1. Consideration (players pay or exchange something of value to be eligible)
2. Chance - the outcome is not pre-determined
3. Prize (money or anything of any value)
The situation with door prizes that can present confusion is "consideration". Are people paying to attend the event or are they paying for a chance to win the door prize. Unfortunately our licensing staff cannot make this type of assessment.
If people can purchase additional chances to win the door prize, or if they get a discounted admission for not being part of the draw, this would represent gaming and would require the appropriate licensing, however there may be some situations where clearly the event costs are equal or greater than the admission cost and everyone who attends has a single chance for the door prize. These events are the ones that can be difficult to assess.
We determine whether or not events/schemes are eligible for a gaming license - but even if we determine an event is not eligible, this does not mean it would not be considered gaming under the criminal code of Canada.
The Gaming Policy & Enforcement Branch is not in a position to provide expert advice regarding the legality of proposed events that fall outside the normal parameters of the standard licensing guidelines. We encourage organizations to seek independent legal counsel for interpretation of the applicable laws when these situations arise.

Promotion / Incentive Question

Generally, for an activity to be considered gaming the following three elements must be present:

1. Consideration (players pay or exchange something of value to be eligible)
2. Chance - the outcome is not pre-determined
3. Prize (money or anything of any value)
Please understand that our role is to determine whether or not events/schemes are eligible for a gaming license - but even if we determine an event is not eligible, this does not mean it would not be considered gaming under the Criminal Code of Canada
The situation with promotions that can be confusing is whether or not there is consideration in the traditional sense. If people need to pay to participate in any way, this may constitute consideration. i.e. if they need to purchase a car, a home or even a cup of coffee in order to enter the draw -this would likely be considered gaming and require a license to be legal.

If anyone can enter the draw - without having to pay - then this is not considered gaming and does not require a gaming license.

You may wish to contact the Competition Bureau at 819-997-4282 or the website at http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/home to get further information.