Charitable Licensing in BC How to Apply For

Charitable Licensing in BC How to Apply For and Manage a Community Gaming Licence Victoria Loyer – Licensing Supervisor Hailey Galego – Licensing Analyst 2017 BC/Yukon Command Convention Richmond, BC June 2 nd, 2017

Objectives for Today By the end of the presentation, you will know more about: • • The different classes of licenses Which expenses are eligible when reporting How gaming funds can be disbursed What percentages can be used towards admin fees The benefits of applying online Status of Chase the Ace How to get the assistance you need Our end goal is to have everyone understand our

Who makes up our Licensing Team? Current Staffing: • 4 Licensing Analysts – primarily review and process Class A & C applications • 8 Licensing Agents – primarily review and process Class B & D applications • Licensing Supervisor • Director

Making It Work Organizations or groups may apply for licensing when their scheme or group is not eligible or does not fit within our current guidelines. Occasionally organizations that do not meet requirements for eligibility may require a change to their structure or bylaws in order to establish eligibility for licensing. Licensing team meets 3 times weekly to discuss and debate possible outcomes and solutions of complex applications and events as they arise.

What requires a licence? Generally, for an activity to be considered gaming the following three elements must be present: • “Consideration” – usually means players must pay or exchange something of value to be eligible to participate • “Prize” – includes money or anything of value • “Chance” meaning the outcome is not predetermined or determined solely by skill Silent auctions do not require a licence.

Class “A” Licenses Class A licenses fall under one of three categories: • Minor (up to $100, 000) • Major (up to $250, 000) • Registered (more than $250, 000) Under a Class A gaming event licence, eligible groups and organizations are limited to: • No limit in gross revenue in a 12 month period; • No limit on gross revenue per licence; • Individual prize values do not have a limit, but prize security must be provided for any prize with a fair market value of $10, 000 or over; and • No limit on price per ticket. Completed applications must be received at a minimum of 10 weeks prior to the event start date.

Class “B” Licenses Under a Class B gaming event licence, eligible groups and organizations are limited to: • No limit in gross revenue in a 12 month period; • Up to $20, 000 gross revenue per licence; • Individual prize values do not have a limit, but prize security must be provided for any prize with a fair market value of $10, 000 or over; and • No limit on price per ticket. Currently, we are requesting 10 business days processing time for a completed application.

Class “C” Licenses Class C licenses are available to organizations that are part of the Registered Provincial Fairs only.

Class “D” Licenses Under a Class D gaming event licence, eligible groups and organizations are limited to: • Raising up to $10, 000 in gross revenue in a calendar year; • Up to $5, 000 gross revenue per licence; • Individual prize values not exceeding $500; and • A $2 maximum charge for each chance to win a prize. Applications must be submitted online. Currently, we are requesting 10 business days

Applying Online and the Benefits Any class of application may be submitted online at: https: //www. gaming. gov. bc. ca/gaming/common/Welcome. do? start=true The benefits of applying online: • Allows for a quicker and smoother process • The online application has additional fields, where a paper application misses out on required information • The online application will not let you move forward unless all the required fields have been completed • Support documents can be attached to the online application • Once you have submitted your application online, it is received by the Branch immediately • Allows agents and analysts to assess the application sooner and allows more time to request additional documents if required

Disbursement of Funds A Legion would be considered a Community Service Organization or a Service Club. Service clubs: • Are responsible for monitoring how gaming proceeds are disbursed by the donation recipient and required to report to the branch any instance where funds were used inappropriately; • Must ensure a Major Capital Project is approved by the branch before gaming proceeds are donated towards the project. • May donate to an organization with which they are associated, as long as the recipient organization meets all eligibility criteria • May use gaming proceeds for their own programs where the branch has provided written approval for the program • Groups receiving donations must be considered an eligible organization Note: It is best to contact the Gaming Policy and Enforcement Branch, on a case-by-case basis, if you are unsure if your use of proceeds are eligible.

Reporting Gaming Event Revenue Reports (GERR): • Gaming Event Revenue Report is a report that is required to be completed for each licence approved to your organization. • It is mandatory that you complete the GERR within 90 days of the expiry of each licence. • This form can be located on our website at: http: //www. gaming. gov. bc. ca/licences/docs/form-event-revenue-rpt. pdf Gaming Account Summary Reports (GASR): • The Gaming Account Summary Report is a report of the activity in your Gaming bank account within an organizations fiscal period. • It is mandatory that you complete the GASR within 90 days of the expiry of your fiscal year end. • This form can be located on our website at: http: //www 2. gov. bc. ca/assets/gov/sportsrecreation-arts-and-culture/gambling-in-bc/form-acct-summary-rpt. pdf These reports can be submitted by regular mail, facsimile: 250 -356 -8149 or by email to gaming. licensing@gov. bc. ca

Reporting Expenses • Your group or organization may pay expenses directly related to the conduct and management of a licensed gaming event. • Expenses cannot exceed 25% of the actual gross revenue. • Prize costs are deducted from gross revenue, but are not considered an event expense. • Examples of permitted expenses are advertising, licence fee, printing, and volunteer out-of-pocket expenses related to the event. • Receipts must be kept for each expense as part of your gaming event records. • Expenses for an event may be prorated.

Understanding Administrative Fees Service Clubs: • May retain up to 10% of the net proceeds from their licensed gaming activities. • Where the net licensed gaming proceeds are 25% or more of gross revenue, the service organization may retain 15% of the net proceeds; and • Cannot receive gaming proceeds from, or donate gaming proceeds to, another service club or community fundraising group.

Chase the Ace The Standard Procedures and Guidelines are currently being reviewed for Chase the Ace and are awaiting approval from the ADM in order to move forward with a pilot in the fall. Once executive approval on the guidelines has been obtained information will be shared with organizations.

Top Reasons for Delays or Denial 1. 2. 3. 4. 5. Applying for the wrong “raffle type” (i. e. 50/50, regular raffle, one day regular series) The use of proceeds not clearly explained or not eligible Applied for the wrong class of licence Not compliant with submitting their Gaming Event Revenue Reports or Gaming Account Summary Reports Applying under incorrect organization profile (multiple profiles) 6. Missing information (common with paper applications) 7. Restricted prizes (alcohol, live animals, restricted/prohibited weapons) 8. Paper applications, slow down the process as we now have to data enter the information into the system 9. Supporting documents (i. e. Community Fundraising Group letters, prize security, eligibility documentation)

How to Avoid a 1. Review the guidelines for the specific licence, Delay 2. 3. 4. 5. 6. before applying. Make certain the contact information provided is correct, providing daytime telephone numbers. Submit the application as soon as possible, prizes must be in place at the time of applying. Submit the required reports within the 90 day period. If you are uncertain about anything, contact us. Complete your application in full, correctly.

• Getting the Assistance You From GPEB – Licensing Need BC Association of Charitable Our website – including online Gaming application resources, application forms, report examples, licensing guidelines, • Will provide information on setting and etc. up a non-profit organization • http: //www 2. gov. bc. ca/gov/conte nt/sports-culture/gambling • Can assist with applying for fundraising/gambling-licencelicenses (or grants) fundraising/documents-forms • By telephone: (250) 387 -5311 or • Assists with completing Gaming Event Revenue Reports and • Toll free at: 1 (800) 663 -7867 Gaming Account Summary Reports • Email: gaming. licensing@gov. bc. ca • Offers workshops online and in person

Any questions? Gaming Policy and Enforcement Branch Website: www. gaming. bc. ca