Can Your Organization Run a Raffle in Canada?

Understanding Eligibility Before You Apply

Start Here: Eligibility Comes Before Everything Else

Before thinking about ticket sales, platforms, or marketing, every organization must answer one critical question: is the organization actually eligible to run a raffle? In Canada, eligibility is determined by provincial gaming regulators and depends on purpose, benefit, and governance — not simply nonprofit status.

Why Many Organizations Get This Wrong

Many eligibility issues arise from incorrect assumptions, such as believing nonprofit incorporation or fundraising intent automatically allows raffles. Provincial regulators assess substance over labels.

How Regulators Think About Eligibility

Although rules vary by province, regulators commonly assess who benefits from raffle proceeds, whether there is a recognized charitable or community purpose, how the organization is governed, and whether proceeds create public benefit or private advantage.

Nonprofit Status Alone Is Not Enough

Adult Recreational and Member-Based Groups

Adult recreational sports teams may be incorporated as nonprofits, but if proceeds offset player fees, travel, or equipment, regulators often find the organization ineligible. The issue is private benefit.

Youth, Community, and Volunteer Organizations

Youth and community groups may qualify, but regulators closely review governance, ownership, and use of funds. Community-owned, volunteer-run organizations are more likely to qualify than privately controlled teams.

Why For-Profit Organizations Use Foundations

For-profit businesses generally cannot run raffles directly. Professional sports teams therefore operate raffles through separate charitable foundations that meet eligibility requirements and hold raffle licenses.

When Costs, Fees, and Revenue Sharing Are Scrutinized

Even when a charitable foundation is eligible, regulators may scrutinize arrangements involving stadium fees, operational costs, or ticket purchases from related teams. These are not automatically prohibited, but regulators evaluate fair market value, transparency, and public benefit.

Why This Matters Before You Apply

Misunderstanding eligibility often leads to delays, restructuring requests, or denied licenses. Eligibility should be confirmed before drafting rules, choosing software, or selling tickets.

Frequently Asked Questions

Does every nonprofit qualify to run a raffle?

No. Eligibility depends on charitable or community benefit.

Can sports teams run raffles?

Some can. Adult recreational teams are often ineligible.

Why do professional teams use foundations?

Because for-profit entities generally cannot hold raffle licenses.

Can charities pay costs to teams or venues?

Sometimes. Regulators may allow reasonable, documented expenses.

About RaffleStudio

RaffleStudio is not a charitable gaming supplier and does not issue raffle licenses. Its role is to help organizations understand eligibility early and access compliant raffle software through licensed suppliers.

Final Takeaway

Eligibility is the foundation of a legal raffle. Organizations that understand eligibility, governance, and use of proceeds are far more likely to avoid regulatory issues.