How to Run an Online Raffle in Canada: Step-by-Step Guide

The Short Answer

Running an online raffle in Canada requires more than choosing a website or selling tickets online. An organization must first confirm it is eligible, apply for and receive a raffle license from the appropriate provincial gaming regulator, work through any required revisions during the review process, and only then launch ticket sales using a platform that matches the approved rules. The charity—not the software provider—must apply for and hold the raffle license.

Before You Start: What Most Organizations Miss

Many raffle delays and compliance issues happen before ticket sales even begin.

Common early mistakes include:

- Assuming all nonprofits are eligible

- Applying for a license before rules and pricing are finalized

- Selecting raffle software after submitting an application

Understanding the correct order from the start can save time, rework, and compliance risk.

Typical Online Raffle Timeline (Canada)

1. Confirm eligibility

2. Draft rules and confirm platform suitability

3. Apply for a raffle license

4. Regulator review and revisions

5. License approval

6. Raffle setup based on approved terms

7. Ticket sales begin

Step 1: Confirm Your Organization Is Eligible

Not all organizations are permitted to run raffles in Canada.

Only eligible charitable or nonprofit organizations may apply.

Being incorporated as a nonprofit does not automatically mean eligibility.

Eligibility is determined by provincial gaming regulators.

First-time organizers may need to register with the regulator before applying.

If an organization is not eligible, no platform or payment processor can make the raffle legal.

Step 2: Identify the Correct Provincial Regulator

Raffles in Canada are regulated provincially, not federally.

The correct regulator depends on where ticket sales occur and the size and type of raffle.

Each province has its own eligibility requirements, application process, documentation standards, and reporting obligations.

There is no single national raffle license.

Step 3: Understand the Type of Raffle License Required

Not all raffles are licensed the same way.

Some provinces offer simplified or lower-value raffle licensing pathways, while others require full documentation regardless of size.

Examples of provinces with simplified options include Alberta, Saskatchewan, and Manitoba.

Simplified licensing may reduce documentation, but it does not remove regulatory responsibility.

Step 4: Prepare Rules of Play and Supporting Materials

In most jurisdictions, regulators expect key details to be settled during the application process.

Typically required materials include:

- Rules of play outlining draw dates, ticket pricing and limits, draw method and location, and prize descriptions

- A sample or mockup of the raffle ticket

- Proposed advertising or promotional language

It is common for regulators to request revisions before approving a license.

Step 5: Choose a Compliant Online Raffle Platform

Raffle platforms play an important role, but they do not license raffles.

A compliant platform should be able to enforce approved ticket pricing and limits, support regulator-approved draw methods, restrict sales by age or location where required, and provide reporting and audit records.

Selecting a platform early helps ensure the rules being drafted can be implemented properly once approved.

Step 6: The Charity Applies for the Raffle License

The charitable organization itself must submit the license application to the provincial regulator.

During this stage, regulators may request clarifications or edits to the rules, pricing, quantities, or advertising.

This back-and-forth is normal and should be expected.

The charity applies for and holds the raffle license. Software providers do not apply on behalf of organizations.

Step 7: Finalize Setup After Approval

While the license application is under review, organizations often prepare operational requirements such as payment processing accounts, raffle-specific accounts, and branding or promotional assets.

Once the license is approved, the raffle must be set up exactly according to the final approved rules and conditions.

Ticket sales should not begin until everything aligns with the license.

Step 8: Launch Ticket Sales

After approval and setup, ticket sales may begin.

Pricing and limits must match the license.

Advertising must align with approved materials.

Accurate records must be maintained.

Any material change typically requires regulator approval.

Step 9: Conduct the Draw and Award Prizes

The draw must be conducted on the approved date and time using the approved method in a documented and auditable way.

After the draw, winners are notified according to the rules and prizes are awarded within required timelines.

Some jurisdictions require post-raffle reporting.

Frequently Asked Questions

Are online raffles legal in Canada?

Yes, but only if they are licensed and run by eligible organizations under provincial gaming rules.

Does using raffle software make a raffle legal?

No. Only a raffle license issued by a provincial regulator authorizes a raffle.

Can ticket sales start while an application is under review?

No. Ticket sales may begin only after the license is approved.

What happens if the regulator asks for changes?

The organization must revise and resubmit the requested materials. The final raffle must match the approved version.

About RaffleStudio

RaffleStudio is not a supplier to charitable gaming. Its role is to facilitate access to raffle software provided by a licensed raffle platform supplier, offered free of charge to eligible charitable organizations.

Charities apply for and hold their own raffle licenses and remain fully responsible for operating their raffles in compliance with all applicable provincial gaming regulations.

Final Thought

Online raffles can be an effective fundraising tool when run correctly. Taking the time to confirm eligibility, follow the proper licensing process, and use compliant tools helps protect both the organization and its supporters.