In keeping with Government of Alberta red tape reduction initiatives, policy amendments provide charities with increased flexibility and efficiency.
Greater flexibility for use of gaming proceeds includes increasing the percentage of proceeds that may be used for eligible administrative costs from 10 per cent to 20 per cent and removing the restriction on facility expenses for groups previously restricted to 50 per cent use (i.e. ethno-cultural groups and service clubs).
Updates to policy increase the amount of gaming proceeds charitable groups may request to retain from $75,000 to $100,000 and increase the length of time groups have to use gaming proceeds from two years to three years, promoting more long-term planning and stability for charitable groups.
Changes to financial reporting requirements will reduce paperwork for charitable groups by removing the recommendation for a consolidated gaming account and for AGLC approval to retain gaming proceeds of $10,000 and less.
The amendments broaden opportunities for arts groups to use proceeds to travel to eligible events outside Alberta.
The requirement for first-time casino applicants to prove a record of active program delivery for the previous 24 months was amended to 12 months.
How will AGLC ensure proceeds are being used correctly with groups being allowed increased opportunities to use of proceeds?
AGLC is providing more flexibility for charitable groups by increasing the timeframe to use gaming proceeds, decreasing restrictions, simplifying donations (the Statutory Declaration form is no longer required), and increasing the amount of gaming proceeds charities may retain.
AGLC is not removing requirements for the use of gaming proceeds; it is amending requirements to provide increased opportunities.
How do charitable groups generate revenue?
Charitable gaming revenue is generated through licensed casino, raffle, bingo, or pull-ticket events conducted by charitable groups in Alberta.
The model provides charitable groups with the opportunity to benefit directly from gaming activities that comply with the Criminal Code (Canada), the Alberta Gaming, Liquor and Cannabis Act and Regulation, and AGLC policies.
Charitable organizations earn proceeds (revenues less expenses) from the conduct of licensed charitable gaming events
How is AGLC working to modernize charitable gaming?
• AGLC has modernized the charitable gaming model with several policy changes in the last three years, including:
Removing the threshold for electronic draws with a random number generator (RNG) and accommodating online ticket sales. This change resulted in potential external revenue generation of $46M and benefits all raffle licensees.
Expanding raffle ticket sales to include online sales to adults outside the entertainment venue (within Alberta) which resulted in some of the highest 50/50 jackpots ever seen in the province.
Expanding large raffles to offer limitless progressive raffles for raffles more than $20,000, creating more opportunity for charitable groups to fundraise.