Are Online Raffles Legal in Canada?

The Short Answer

Yes — online raffles are legal in Canada, but only when they are run by eligible organizations and licensed by the appropriate provincial gaming regulator. There is no single national raffle license, and selling raffle tickets online without proper provincial authorization is not permitted.

Why This Question Causes Confusion

Many organizations see raffles advertised online and assume that selling tickets digitally changes the legal requirements. Others believe that fundraising intent alone makes a raffle legal. Neither assumption is correct.

In Canada:

• All raffles are regulated 

• Licensing authority is provincial 

• Selling tickets online does not remove legal obligations 

How Raffles Are Regulated in Canada

Canada’s Criminal Code establishes that gaming activities, including raffles, are generally prohibited unless specifically authorized. Provinces are granted authority to regulate and license raffles within their jurisdictions. There is no federal online raffle license.

Provincial Regulators Issue Raffle Licenses

Each province has its own gaming regulator responsible for determining eligibility, issuing raffle licenses, setting operating conditions, and enforcing compliance. An organization must apply to the regulator in the province where ticket sales are permitted.

Does Selling Tickets Online Change the Rules?

No. Selling tickets online does not replace the need for a raffle license, shift authority to the federal government, or allow unrestricted ticket sales.

Provincial Borders and Online Ticket Sales

Because raffle licensing is provincial, online ticket sales are generally restricted to participants physically located within the province that issued the license. Organizations are typically expected to limit ticket sales to the licensed province and take reasonable steps to prevent out-of-province purchases.

Limited Cross-Provincial Arrangements

In limited cases, provincial gaming regulators may approve reciprocal or cooperative licensing arrangements that allow ticket sales across provincial borders. These arrangements are exception-based, explicitly authorized, and typically limited to specific raffles and organizations.

Data Location and Jurisdiction Considerations

Regulators often expect raffle systems and participant data to remain under Canadian jurisdiction. This may include storing raffle data on servers located in Canada and ensuring records are accessible for regulatory audit or review.

Who Can Legally Run an Online Raffle?

Only eligible organizations may run licensed raffles in Canada. Eligibility is determined by provincial regulators and is not based on nonprofit incorporation alone.

Nonprofit Does Not Automatically Mean Eligible

Adult recreational sports teams or similar groups may be incorporated as nonprofits but are often ineligible if proceeds primarily benefit participants rather than a broader community.

Why For-Profit Organizations Cannot Run Raffles

For-profit entities are generally not permitted to run raffles. Professional sports teams therefore operate raffles through separate charitable foundations that meet eligibility requirements and hold raffle licenses.

What Makes an Online Raffle Legal?

An online raffle is legal only when the organization is eligible, licensed, follows geographic limits, begins sales only after approval, and conducts draws according to approved rules.

Frequently Asked Questions

Are online raffles legal in Canada?

Yes, when licensed and run by eligible organizations.

Can any nonprofit run a raffle?

No. Eligibility depends on charitable or community benefit.

Can online raffles sell tickets across provinces?

Generally no, unless explicit regulatory approval exists.

Do raffle platforms make raffles legal?

No. Only a provincial raffle license authorizes ticket sales.

About RaffleStudio

RaffleStudio is not a supplier to charitable gaming. Its role is to facilitate access to compliant raffle software from licensed raffle platform suppliers, offered free of charge to eligible charitable organizations. Charities apply for and hold their own raffle licenses and remain responsible for compliance.

Final Thought

Online raffles can be effective when run correctly. Understanding licensing, eligibility, and jurisdictional limits helps organizations avoid costly mistakes.