Local groups crippled by strict lottery license law enforcement

Ken Johnston
Editor

“Minister, have you changed your instructions to the AGCO (Alcohol and Gaming Commission of Ontario) to deliberately exclude these groups, which work primarily to benefit the common cause, from running small lotteries, bingos, raffles to raise funds in order to promote and benefit small town Ontario? If so, have you done so to favour the casino industry?”
–Howard Hampton,
M.P.P. Kenora-Rainy River

Several months ago Municipal officials were sent to a meeting to discuss lottery licenses and the laws governing them. Following that meeting many organizations that have for decades been able to get a lottery license for raffles, were told they did not qualify under the law.
Some were told the regulations changed and left it at that. However, the Rainy River and District Chamber of Commerce was not content to let the issue alone, especially when they were told they could not qualify for a license to raffle off a boat at the annual Walleye Tournament.
Despite getting a license for the raffle the past two years, the Chamber was told that it did not meet provincial laws under the definition of a Charitable Organization.
Chamber Treasurer Brent Anderson wrote to Kenora-Rainy River M.P.P. Howard Hampton after exhaustive research with AGCO and consultation with the Town of Rainy River. In addition to the Chamber’s problem, several other groups echoed them. The Rainy River Hospital Auxiliary could not raffle anything at their annual Strawberry Social; the Rainy River Volunteer Fire Department could not get a license to hold its annual Kenducky Derby, an event that has run for almost two decades; the Rainy River Recreation Board, run by volunteers, was told it did not qualify for license to raffle items.
Hampton in turn wrote to Norm Sterling, Minister of Consumer and Commercial Relations, asking if the Minister had changed the definition and enforcement of it. Sterling dodged the question noting that AGCO is an arm’s length agency of his Ministry. “The AGCO also provides advice to municipal licensing authorities with respect to the lottery licensing eligibility,” said Sterling.
The regulations for charitable gaming require that only those organizations that are considered charitable may obtain a lottery license and the proceeds must be solely to support charitable activities. In his reply to Hampton, Sterling noted there are four areas that are considered eligible as charitable activities that the proceeds from lotteries can be attributed to. They are: relief of poverty; advancement of education, advancement of religion; or other charitable purposes beneficial to the community.
What seems to be the problem with local groups is their ability to prove their non-profit or charitable status. The only groups that have successfully proved their status in Rainy River in recent weeks are the Rainy River Lions Club and the Rainy River Legion who both have their original charters. Groups like the Chamber of Commerce, while incorporated in the 1930s have not been able to do so and have hence been denied lottery licenses.
Anderson said in his letter to Hampton that the mission statement of the Chamber states, “The object of the Rainy River and District Chamber of Commerce is to Promote the Commercial, Industrial, Agricultural and Civic welfare of Rainy River and surrounding district.” However that is not enough and hence the Chamber has begun application to AGCO to obtain status as a non-profit association.
Tannis Drysdale of the Fort Frances Chamber of Commerce and president of the Northwestern Ontario Associated Chambers of Commerce, said that it was her understanding that when most chambers incorporated in the 1930s that they were granted non-profit status under the Board of Trades Act. She noted that the Fort Frances Chamber of Commerce recently had the same difficulty in getting a lottery license.
Anderson as well as Hampton inferred that the province has made a stricter interpretation of the laws governing lottery licenses this year in an effort to push small town gambling towards provincial casinos. However, Sterling did not respond to either men in his most recent letter. The nearest provincial casino to Rainy River is in Thunder Bay, five hours to the east.