The Alcohol and Gaming Commission of Ontario (AGCO) has implemented significant policy updates affecting charitable lottery operations in the province. Most notably, the AGCO has removed the cap on seller commissions for Paper Raffles and Media Bingo, giving licensed charities greater flexibility in how they compensate sellers for their services.
In addition, the AGCO has eliminated the longstanding prohibition on Catch the Ace paper lotteries, aligning them with other regulated charitable lottery products. These changes were announced as part of a broader initiative to reduce administrative burden on nonprofits and support the sector through an outcomes-based regulatory approach.
Charities Gain Flexibility in Commission Setting
With the new policy changes, charities licensed by the AGCO can now negotiate commission rates directly with their ticket sellers, provided the amounts are considered reasonable and tied to the actual services rendered. The AGCO will no longer require these figures to be submitted during the application process, though charities must still maintain records and may be subject to audits to verify compliance.
The updates are formally reflected in three sets of revised documents:
- Lottery Licensing Policy Manual
- Raffle Licence Terms and Conditions
- Media Bingo Terms and Conditions
Among the most notable revisions is the removal of the clause prohibiting commission payments for Catch the Ace events. The manual now explicitly allows sellers of tickets for these progressive raffles to be compensated, in line with existing rules for other charitable games.
Updated Expense Handling Rules
The AGCO also modified expense reporting requirements under Section 8 of the Raffle Licence Terms and Conditions. Charities may now pay seller commissions in cash, provided a receipt is issued. All other expenses must still be processed through the designated lottery trust account.
The Media Bingo Terms and Conditions were similarly revised, now stating that individuals helping with the sale of bingo cards may be paid commissions determined by the charity.
While application documentation requirements have been eased, charities are still expected to comply with audit and reporting obligations, retain all receipts for commissions paid, and follow Ontario’s legal framework for charitable gaming. They must also ensure that all events are conducted and managed within the province in accordance with the Criminal Code of Canada.
Broader Context of AGCO Policy Reform
These updates come amid a series of broader regulatory changes by the AGCO aimed at modernizing oversight while supporting responsible gaming (red more about responsible gambling initiatives by AGCO HERE. In recent months, the commission removed approval requirements for responsible gambling training programs and concluded a regulatory settlement with Woodbine Entertainment following an investigation into horse racing fatalities at the end of 2024.
The latest changes are designed to streamline charitable lottery operations and ensure that fundraising efforts are not hindered by administrative obstacles, allowing organizations to focus more directly on their community-based missions.
Source:
AGCO removes cap on seller commission for charitable lottery products to reduce burden for charities, agco.ca, 5. August 2025.
