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Ticket Lottery Regulations

made under Section 127 of the
Gaming Control Act
S.N.S. 1994-95, c. 4
O.I.C. 95-260 (April 4, 1995, effective May 31, 1995), N.S. Reg. 41/95
as amended up to O.I.C. 2004-138 (March 30, 2004, effective April 1, 2004), N.S. Reg. 77/2004

Citation
1 These regulations may be cited as the "Ticket Lottery Regulations".

Definitions
2 In these regulations

(a) "accountant" means

(i) a public accountant within the meaning of the Public Accountants Act, or

(ii) a person who provides services in the nature of the investigation or audit of accounting records, the preparation of balance sheets, profit and loss statements and financial statements, bookkeeping, cost accounting, budget preparation, payroll preparation, preparation of tax returns and account reconciliation,

but does not include the services of any such public accountant or other such person acting as a liquidator, receiver, receiver-manager, trustee in bankruptcy or other like person;

(b) "Act" means the Gaming Control Act;

(c) "advertising" means any form of notice, the apparent purpose of which is to convey information to the public in and by newspaper or other printed publication, poster, circular notice, radio, television or any other form or medium of public communication;

(d) "business day" means any working day when banks are open to conduct business in the Province;

(e) "charitable, religious or community objects or purposes" means objects or purposes for

(i) the alleviation of poverty or the consequences of poverty,

(ii) education including the advancement of literacy,

(iii) the furthering of religious or societal values, or

(iv) any other purposes beneficial to the community;

(f) "charitable or religious organization" includes an organization that performs acts in furtherance of charitable, religious or community objects or purposes without profit or personal financial gain to its members;

(g) "Commission" means the Alcohol and Gaming Authority*;
*[Note: The Gaming Control Commission and the Liquor License Board were amalgamated as the Alcohol and Gaming Authority by O.I.C. 97-470 dated July 15, 1997.]

(h) "documents" means money, securities, books, records, letters, telegrams, vouchers, invoices, deposit slips, accounts, bank and trust and loan company statements, receipts, computer tapes and discs and records and statements, including financial statements, whether original, copy or facsimile and whether computerized or not;

(i) "draw" means the determination by lot of the winner or winners of a ticket lottery;

(j) "expenses" means all expenses incurred in the conduct and management of a ticket lottery;

(k) "gross receipts" means the total revenue derived from all sources in the conduct and management of a ticket lottery;

(l) "house rules" means the written rules made by a licensee, in addition to these regulations, for the purpose of the conduct and management of a ticket lottery;

(m) "inspectors or auditors" means inspectors or auditors appointed pursuant to the Act or these regulations, members of the Royal Canadian Mounted Police or members of a municipal police force within the meaning of the regulations made pursuant to the Police Act;

(n) "licence" means a licence issued pursuant to these regulations to conduct and manage a ticket lottery offering a prize or prizes valued at or in excess of $500.01 in total;

(o) "licensee" means a person holding a licence or permit issued by the Commission pursuant to these regulations;

(p) "money" includes negotiable instruments;

(q) "net receipts" means gross receipts less expenses;

(r) "permit" means a permit issued under these regulations to conduct and manage a ticket lottery offering a prize or prizes valued at or less than $500 in total;

(s) "purchaser" means any person who acquires a ticket at a sale in the Province for use of the purchaser or for use by other persons at the expense of the purchaser or on behalf of or as agent for a principal who desires to acquire such ticket at the expense of the purchaser;

(t) "sale" means a transfer of title whereby at a price in money paid by a purchaser to a vendor, a vendor delivers to a purchaser a ticket for a ticket lottery;

(u) "sport pool" means a ticket raffle, the winning of which is based on the results of a series of sporting events;

(v) "ticket lottery" means a lottery scheme for which a licence or permit has been issued pursuant to these regulations and by which a prize comprised of an article of value or cash or both, or reward of any kind, is awarded or disposed of by selling to a number of persons, for a fraction of the value of the prize, a chance of winning the prize, any winner being determined by lot.

Licences and permits
3 (1) The Commission may, upon application by a person, issue a licence or permit to such person to conduct and manage a ticket lottery, provided that the applicant undertakes in the application that the total net receipts from ticket sales will be used for charitable, religious or community objects or purposes.

(2) Tickets having a selling price of $5 or more per ticket shall be sold individually for the price indicated and no discounted prices are permitted in respect of the sale of more than one ticket per sale to a purchaser, unless two separate and distinct sets of tickets are used or another method for ensuring financial accountability is established that is satisfactory to the Commission.

4 (1) An applicant for a licence shall state on the application the

(a) name and address of the applicant;

(b) exact location, date and time of the draw;

(c) start date and finish date of the ticket lottery;

(d) number of draws;

(e) number of tickets printed;

(f) price per ticket or group of tickets;

(g) description of the prize;

(h) prize value;

(i) geographical area in the Province in which tickets will be sold and money expended from their sale;

(j) names, addresses and telephone numbers of two authorized representatives of the applicant who shall be the same two representatives who sign the application on behalf of the applicant;

(k) procedures respecting how the draw is to be conducted and the winners determined; and

(l) the charitable or religious objects or purposes of the ticket lottery.

(2) An applicant for a permit shall state on the application the

(a) name and address of the applicant;

(b) exact location, date and time of the draw;

(c) description of the prize;

(d) total prize value;

(e) number of tickets to be printed;

(f) price per ticket or group of tickets;

(g) name, address and telephone number of one authorized representative of the applicant who shall be the representative who signs the application on behalf of the applicant; and

(h) the charitable or religious objects or purposes that will be advanced by the ticket lottery.

(3) Unless an exemption is granted by the Commission, a licensee shall indicate on each ticket

(a) the name and address of the licensee;

(b) the words "licensed by the Alcohol and Gaming Authority*" together with the assigned licence or permit number;
*[Note: The Gaming Control Commission and the Liquor License Board were amalgamated as the Alcohol and Gaming Authority by O.I.C. 97-470 dated July 15, 1997.]

(c) the price per ticket or group of tickets;

(d) a description of the prize;

(e) the exact location, date and time of the draw; and

(f) any house rules or restrictions respecting the conduct and management of the ticket lottery.

(4) A licensee shall forward to the Commission

(a) respecting a 1-day licence, within 30 days after the date on which the licence expires; and

(b) respecting a licence valid for a period greater than 1 day, within 30 calendar days after the last business day of each calendar month during such period, commencing with the month in which the licence is issued,

a specimen ticket together with a report showing

(i) the number of tickets printed,

(ii) the number of tickets sold,

(iii) the number of tickets unsold,

(iv) the price per ticket or group of tickets,

(v) the gross receipts from ticket sales,

(vi) the total expenses,

(vii) the total value of a prize awarded, and

(viii) a complete list of all prizes awarded and the names, addresses and telephone numbers of the winners.

5 Wages, salaries and other expenses paid by a licensee, either directly or indirectly, for selling tickets and for conducting, managing or assisting in the conduct or management of a ticket lottery may be deducted from the gross receipts, provided that such wages, salaries and other expenses are fair and reasonable as determined by the Commission and have been disclosed on the application form.

Fees
6 (1) The Executive Director may make a value determination of any prizes awarded by a licensee and thereupon the value for the purpose of these regulations shall be as determined by the Executive Director.

(2) A licensee shall pay to the Commission a fee equal to 2.13% of the value of all prizes awarded in the ticket lottery authorized by the licence.
Subsection 6(2) amended: O.I.C. 2004-138, N.S. Reg. 77/2004.

7 A licensee shall forward to the Commission fees payable under Section 6 by cheque or similar instrument made payable to the Commission, which fees shall be enclosed with the report required to be filed with the Commission under subsection 4(4).

8 (1) Fees payable to the Commission pursuant to these regulations are not refundable.

(2) A licence or permit issued under these regulations is not transferable or assignable.

9 The Commission may prescribe such terms and conditions on a ticket lottery licence or permit as it considers necessary or desirable for the public interest and for the proper administration of these regulations.

Suspension or cancellation
10 The Commission may suspend or cancel a licence or permit where

(a) a licensee contravenes any requirement of the application or breaches any of the terms or conditions of the licence or any provision of the Act or these regulations; or

(b) the Commission determines that it is in the public interest to suspend or cancel the licence or permit.

11 A licence or permit may be issued for a day or for a period not exceeding 3 years.
Section 11 amended: O.I.C. 2002-9, N.S. Reg. 6/2002.

12 Every application, report, licence or permit referred to in the regulations shall be in such form as the Commission may from time to time approve or prescribe.

Advertising
13 (1) No licensee shall in any way engage in advertising, or permit anyone with whom the licensee contracts to engage in advertising that

(a) implies ticket lotteries promote or are required for social acceptance, personal or financial success or the resolution of any economic, social or personal problems;

(b) contains endorsements by well-known personalities that suggest playing ticket lotteries contributed to their success; or

(c) compares playing ticket lotteries to other forms of gaming in Nova Scotia.

(2) All ticket lottery advertisements shall state, in size and form approved by the Commission,

(a) the name of the licensee;

(b) the date, time and place of the ticket draw; and

(c) the current lottery licence or permit number and the year issued by the Commission,

and shall clearly state the total cash value of prizes to be awarded.

(3) A licensee shall provide the Commission, at its request, with samples of advertising and promotional materials to be used in connection with a ticket lottery for approval by the Commission.

(4) A licensee shall not insert an advertisement in any publication which reserves a space or spaces for a ticket purchaser to place any name, address or telephone number that can be extracted from the advertisement and forwarded to the licensee in the original or duplicated form to be used as an entry in a licensed ticket lottery draw.

(5) Ticket lotteries licensed by the Commission shall not be advertised outside the Province nor shall tickets be sold outside the Province.

(6) No lottery ticket originating outside the Province or primarily for the benefit of charitable, religious or community objects or purposes outside the Province shall be sold in the Province.

Rules
14 (1) A licensee may establish house rules, not inconsistent with these regulations or the terms and conditions of the licence or permit issued to the licensee, governing the conduct and management of ticket lotteries.

(2) A licensee shall

(a) make available to any purchaser on request, all house rules established pursuant to subsection (1); and

(b) read the house rules aloud immediately prior to the draw.

(3) House rules governing the operation of a draw must include, but are not restricted to, a description of

(a) the exact location of the draw;

(b) the procedures respecting how the draw is to be conducted and how winners are to be determined;

(c) restrictions, if any, regarding the purchase of tickets by members of any sponsoring organization and their families;

(d) the minimum number of tickets which must be sold before either

(i) a draw date extension will be requested, or

(ii) the draw will be cancelled;

(e) the order in which the prizes will be awarded;

(f) the circumstances in which cash in lieu of prizes will be offered; and

(g) the procedure to be followed if the winner cannot be located.

15 (1) Every draw shall be conducted by the licensee in public, in the presence of at least 3 persons at the time and place indicated on the application.

(2) In the case of a sport pool, entries must be opened, recorded and witnessed by a panel established by the licensee consisting of at least 3 persons for the purpose of verifying participation in and winners of the ticket lottery.

(3) Only entries received by the deadline date established by the licensee shall be eligible to participate in a ticket lottery.

(4) Where the identity of a prize winner is known upon completion of a draw, the licensee shall contact the prize winner immediately in person or by telephone and inform the prize winner of the result of the draw.

(5) Where the holder of a ticket is required to be present at a ticket lottery draw, this requirement must be printed on the ticket and must be contained in the house rules.

(6) A second draw must be made for prizes unclaimed after 90 days following the original draw date and this requirement must be printed on the ticket and must be contained in the house rules.

16 A licence or permit may limit the geographical area and time period within which lottery tickets may be sold.

17 No licensee shall permit the dispensing of lottery tickets by means of a machine unless authorized by the Commission.

18 (1) Prizes shall be awarded by the licensee at the time, place and in the manner stated in the application filed by the licensee pursuant to subsection 4(1).

(2) No licensee shall reschedule any draw date or cancel a ticket lottery without the prior written approval of the Commission.

(3) The Commission may require an applicant to deposit with the Commission, a bond or other security satisfactory to the Commission in such amount as may be determined by the Commission which shall not in any case be greater than 6 times the value of the prizes to be awarded to ensure that the prizes are available to the winners upon completion of the lottery.

19 If the licensee is a charitable or religious organization, it shall conduct a ticket lottery in the geographical location set out in the application and authorized in the licence.

Conduct and management
20 (1) Only personnel under the supervision of the licensee shall conduct, manage or assist in the conduct or management of a ticket lottery.

(2) Only the licensee shall

(a) conduct and manage a ticket lottery and handle cash transactions in relation thereto; and

(b) be responsible for advertising or promoting the ticket lottery.

(3) A person convicted of any criminal offence, for which such person did not receive a pardon, shall not be involved in any manner or capacity in the conduct and management of any ticket lottery, unless the Commission considers on its review, that the involvement of such person would not bring the conduct and management of such ticket lottery into disrepute.

(4) The conduct and management of a ticket lottery and draw shall not be delegated to any organization or to any person who is not a member of the licensee.

(5) A commission for selling tickets may be paid to a charitable or religious organization if the intention to do so is stated in the application for the licence or permit.

Inspectors and auditors
21 (1) The Commission may appoint inspectors or auditors for the administration of these regulations.

(2) Inspectors or auditors shall have the power to inquire into the conduct and management of a ticket lottery and shall advise the Commission of the results of their inquiries.

(3) Inspectors or auditors may enter at any reasonable time, on or about the premises occupied by any licensee or the premises where the records of the licensee are kept or believed to be kept, to determine whether the Act and these regulations are being and have been complied with or to inspect, audit and examine books of account and documents.

(4) The person occupying the premises referred to in subsection (3) shall answer all questions posed by the inspectors or auditors and shall produce such books of account and documents as may be required.

(5) All records relating to the conduct and operation of a ticket lottery shall be retained by the licensee for a least 3 years after the expiration of the licence period unless their destruction at an earlier date is expressly authorized in writing by the Commission.

(6) A licensee holding a licence having a term of 90 days or more shall submit a financial statement to the Commission with each application for the renewal of such licence and the Commission may require the applicant, at the expense of the applicant, to submit such statement in the form of an independent audit of the financial affairs of the applicant conducted by an accountant.

Collection
22 Any amounts that are due and payable to the Commission pursuant to the Act or the regulations may be recovered by action in any court of competent jurisdiction as a debt due to the Commission and the court may make an Order as to the costs of such action.

Offences
23 Every person who contravenes a provision of these regulations is guilty of an offence and is liable, on summary conviction, to a fine of not more than $3000 and, in default of payment, to imprisonment for a term not exceeding 6 months.