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 federal “online raffle license,” and selling raffle tickets online without proper provincial authorization is not legal.

Why This Question Is Common — and Often Answered Incorrectly

Many organizations assume that because raffles are advertised online, or because tickets are sold digitally, online raffles must be lightly regulated or federally permitted. That assumption is incorrect.

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 are generally prohibited unless specifically authorized. Provinces are then given authority to regulate and license raffles under their own jurisdiction. There is no national raffle license.

Does “Online” Change the Legality of a Raffle?

No. Selling tickets online does not remove licensing requirements, shift authority to the federal government, or permit unrestricted ticket sales.

How Provincial Licensing Affects Online Ticket Sales

Because raffle licensing is provincial, online ticket sales are generally restricted to buyers physically located within the province that issued the license. Organizations are expected to take reasonable steps to prevent out-of-province ticket purchases, commonly through geolocation controls, address verification, or similar safeguards. Requirements vary by province.

Limited Reciprocal Licensing Arrangements

In limited circumstances, provincial gaming regulators may enter into reciprocal or cooperative licensing arrangements that allow ticket sales across provincial borders.

For example, Ontario and Nova Scotia have participated in reciprocal arrangements that permit certain licensed raffles to sell tickets into both jurisdictions. These arrangements are exception-based, explicitly authorized, and typically limited to specific raffles and organizations, such as large-scale charitable raffles operated through professional sports team foundations.

Organizations should not assume cross-provincial ticket sales are permitted unless written approval has been granted by each applicable regulator.

Data Location and System Jurisdiction Considerations

Because raffles are regulated provincially, regulators often expect raffle systems and data to remain under Canadian jurisdiction. This may include storing raffle data on servers located in Canada and ensuring regulators can access records for audit or review. Specific requirements may be imposed as a condition of licensing.

Who Can Legally Run an Online Raffle?

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

Nonprofit Does Not Automatically Mean Eligible

For example, an adult men’s hockey team may be incorporated as a nonprofit, but if it primarily exists to fund its own operations or participant expenses, regulators will typically not consider it eligible for raffle licensing. Regulators assess who benefits from the raffle proceeds and whether there is a recognized charitable or community purpose.

Why For-Profit Entities Cannot Run Raffles Directly

For-profit businesses are generally not permitted to run raffles. This is why professional sports teams operate raffles through separate charitable foundations that meet eligibility requirements and hold raffle licenses in their own name.

Ownership Structure Matters

At the local level, community-owned and volunteer-run organizations may qualify for raffle licensing, while teams or organizations owned or controlled by individuals may not. Regulators focus on governance, control, and use of proceeds.

What Makes an Online Raffle Legal?

An online raffle is legal only when:

1. The organization is eligible 

2. A provincial raffle license is issued 

3. Ticket sales are limited according to license conditions 

4. Sales begin only after approval 

5. Draws and prizes follow approved rules 

Frequently Asked Questions

Are online raffles legal in Canada?

Yes, when run by eligible organizations and licensed by the appropriate provincial gaming regulator.

Can any nonprofit organization run a raffle?

No. Eligibility depends on charitable or recognized community benefit, not nonprofit status alone.

Can adult sports teams run raffles?

Generally no, if proceeds primarily benefit team members rather than the broader community.

Why do professional sports teams use foundations to run raffles?

Because for-profit entities cannot run raffles directly. Foundations meet eligibility requirements and hold raffle licenses.

Can online raffles sell tickets across provincial borders?

Generally no. Online ticket sales are usually limited to the province issuing the license. Cross-provincial sales are only permitted where reciprocal arrangements exist and explicit approval has been granted by all relevant regulators.

Do raffle platforms or software make raffles legal?

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

Final Word

Online raffles are legal in Canada only when they are licensed, jurisdictionally limited, and operated according to provincial requirements. Understanding eligibility, jurisdiction, and regulatory authority is essential before applying for or launching an online raffle.