This is a return to Question O363-12(2), asked by Ms. Mike on March 25th. Section 206 of the Criminal Code of Canada prohibits gambling activity in Canada. Section 207, however, grants provinces and territories the right to legalize gambling provided it is conducted and managed by charitable organizations and the funds raised are used for a charitable purpose.
Charitable organizations are distinct from other organizations, such as businesses, by the fact that they are wholly run by volunteers. Volunteers are those who choose to give freely of their time to assist others. When payment is made, whether in cash or, in this case, by free cards, these people cease to be volunteers and become paid employees.
A legal opinion was recently sought on the question of volunteers receiving compensation for conducting managing, planning or assisting with any lottery scheme." Compensation is defined in the lotteries regulations as "any direct or indirect gain or reward." It is the opinion of legal counsel that payment of any compensation breaches the provisions of section 10(1)(h) of the lotteries regulations.
The lotteries regulations apply to all licensee groups across the Territories. There is no provision for licensees to opt in or out of a particular rule. Any change to the regulation referred to above would have to be looked at in conjunction with the authority contained in the Criminal Code which permits licensed gambling to take place in Canada.