Canadian Gaming Summit 50/50 Electronic Raffle Programs. June 17, 2015

Transcription

1 Canadian Gaming Summit 50/50 Electronic Raffle Programs June 17, 2015

2 Agenda Legal Framework Raffles: Traditional versus Electronic 50/50 Electronic Raffle programs Key Benefits to using electronics Outcomes of the raffle programs Challenges of the raffle programs Next steps from a regulatory and gaming perspective 2

3 Federal Authority In Canada, authority to licence gaming activity flows from provisions in the Criminal Code (Canada). Section 207 (1) (a) of the Criminal Code of Canada provides an exemption from the general prohibition against gambling, allowing provincial governments to conduct and manage lottery schemes. Section 207 (1) (b) of the Criminal Code of Canada provides exemption from the general prohibition against gambling, allowing eligible charitable and religious organizations to conduct and manage lottery schemes under the authority of a licence issued by the appropriate authority. This section also allows the Lieutenant Governor-in-Council to delegate licensing authority. 3

4 Provincial Authority Each provincial government can define the regulatory framework for gaming within their respective provinces. This may result in variations of how similar types of lottery schemes are regulated throughout Canada. Provincial statutes are also in place which outline the requirements for registration within each province. Gaming equipment suppliers are required to be registered in each of the provinces in which they offer their goods and / or services. 4

5 Raffles: Traditional versus Electronic Traditional raffles include pre-printed tickets, either stub draw types with the name, address, phone number of purchaser, or the double-numbered tickets from a roll. A portion of the stub or double-numbered ticket is then to be placed in a drum or container, and a ticket is randomly selected manually as the winner. 5

6 Raffles: Traditional versus Electronic Electronic 50/50 raffles use of electronic devices to print the raffle number (s) on the ticket and record the transaction for draw and audit purposes at the time of purchase. In most provinces, the raffle system prints a ticket representation to go into the draw container. In Ontario, the raffle numbers were placed into a virtual drum and a Random Number Generator (RNG) selects the winning raffle number. 6

7 50/50 Electronic Raffle Programs Most of the provinces and territories permit the use of electronic devices for 50/50 raffle initiatives, and have since Mainly offered at major sporting venues, concerts and festivals. Electronic raffle hardware and software requires review, testing and approval prior to implementation. Some provinces conduct their own review and testing procedures, while several provinces have accepted certification to GLI-31 Technical Standards. In 2014, the Ontario Lottery and Gaming Corporation (OLG) launched the 50/50 Electronic Raffle pilot. AGCO reviewed the GLI-31 testing results along with conducting our own assessment to ensure compliance to AGCO s Technical Standards. 7

8 Key Benefits of Electronic Raffles Key benefits of using electronic devices include increased: Integrity Accuracy Speed Security Revenue Excitement Accountability 8

9 Outcomes of Electronic Raffle Programs Maintains public confidence in these types of lottery schemes due to regulatory assurance activities conducted. Regulatory assurance is achieved through constant collaboration between the Regulator, operator (OLG) or charities and equipment suppliers. Strengthening communities as a result of increased profit for the associated charities, which in turn provides vital funding for a variety of charitable initiatives. Increased excitement to the public as a result of higher prizes generated through the increase in sales. 9

10 Challenges of Electronic Raffle Programs Need volume sales in order to make the purchase / renting of equipment worthwhile. Ideally suited for large arenas or facilities for a variety of events such as major league sports, concerts, conventions, festivals, etc. Printing tickets for use in a physical drum increases the risk that raffle numbers may not be included in the draw. Issues such as printer jams, cutting of tickets, number of tickets to be printed, no toner / ink. Strong control activities are needed to mitigate these risks. Tracking access to the system. This generated the requirement in some jurisdictions to request a keylogging function into the software. 10

11 Challenges of Electronic Raffle Programs cont d Newness of product and use of technology within raffle lottery schemes required constant review and enhancements based on the Regulator s audits and inspections. Ensuring charity volunteers involved had received proper training on the use of the equipment. 11

12 Next Steps Bill C-43 received Royal Assent on December 16, 2014, which resulted in changes made to the Criminal Code (Canada). The changes include: allowing the sale of the raffle ticket; selection of the winner; and awarding of the prize (s) on or through a computer. Each province will be reviewing the impact to their respective regulatory frameworks as a result of these changes. In Ontario, the OLG Electronic Raffle 50/50 pilot program has been extended with the same two Foundations only, to include the NHL / NBA seasons. 12