Store raffle runs afoul of lottery law
Kitchener contest cancelled, refunds issued after owner gets a visit from the police
KITCHENER — Kevin Ivory’s attempt to raffle off the contents of his Kitchener sports collectibles store ended with a visit from the police.
Last month, Ivory launched a contest to offer All-Star Sports Collectibles’ inventory and fixtures to a lucky ticket buyer after an earlier attempt to sell the business didn’t lead to a deal.
He set up a dedicated website, selling tickets for $100 each or six for $500 for the chance to win at least $250,000 worth of sports memorabilia and collectibles.
And he thought he’d done his homework, having spoken with a lawyer and contacting the Alcohol and Gaming Commission of Ontario (AGCO) to see if he needed a licence.
Ivory said he was told his idea was outside the AGCO’s jurisdiction, as he was not representing a charitable or religious organization interested in holding a gaming activity like a raffle. Ivory understood that to mean he didn’t require a licence, and no one from the AGCO ever said his raffle would be illegal, he maintains.
“If they would have used those words, I wouldn’t have done it,” he said. “I didn’t think I was doing anything wrong ... If I did I wouldn’t have (gone) ahead.”
But a couple of weeks ago, Ivory said a pair of Waterloo Regional Police officers showed up at the store, located at Sportsworld Crossing. Someone had apparently complained about the raffle; police advised him the raffle was unlawful.
Ivory stopped selling tickets, announced the cancellation on social media, and issued refunds to purchasers. He said he had sold roughly 500 tickets.
“I didn’t want people thinking we were trying to do some kind of scam,” he said. “It is frustrating.”
Canada’s Criminal Code outlines permitted gaming activities, including raffles, and the provinces are assigned responsibility for operating, licensing and regulating those activities, AGCO spokesperson Raymond Kahnert said in an email.
In Ontario, the AGCO, in association with municipal officials, can issue licences to charitable and religious organizations to conduct lotteries.
“An individual or association that is not a charitable or religious organization would not be eligible for a licence,” Kahnert said.
“Violations of the Criminal Code are a matter for the local police ... It is my understanding that the local store owner contacted the AGCO and was advised that the AGCO had no authority to issue a raffle licence.”
The AGCO also oversees the licensing of games of chance at fairs and exhibitions, and approves rules of play for games managed by the Ontario Lottery and Gaming Corporation.
With just four months left on his lease, Ivory is trying to sell the 11-year-old business the conventional way once again, asking $159,999. He’ll be forced to liquidate his merchandise if he doesn’t land a deal.