First Nations Control On-Reserve Lotteries

Summary#

This bill changes the Criminal Code and the Indian Act to let First Nations run and license lottery schemes (games of chance covered by the Criminal Code) on their reserves after giving formal notice to Canada and the province. It also lets band councils make by-laws to regulate these activities on-reserve. For lottery law, a reserve that gives notice is treated as not part of the province for these purposes (new deeming rule) (Clause 1, new s.207(2.2), (4.001); Clause 2).

• First Nations can conduct and manage lottery schemes on their reserves and license others to do so, once they give written notice with a start date (Clause 1, new s.207(1)(a.1), (2.2)).
• Band councils can pass by-laws to regulate on-reserve lottery operations, including licence terms (Clause 1, new s.207(2.1); Clause 2, Indian Act s.81(1)(m.1)).
• Provinces cannot apply their lottery licensing on a reserve after the notice date; ticket sales on-reserve require agreement with the First Nation (Clause 1, new s.207(4.001), (1)(e.1)).
• Charities and fairs can be licensed by First Nations to run lotteries on-reserve; computer-based raffles by these groups are allowed (Clause 1, new s.207(1)(b.1), (c.1), amended s.207(4.1)).
• Small-prize games at public places of amusement on-reserve are allowed under First Nation licences, with prize caps of $500 and ticket price caps of $2 (Clause 1, new s.207(1)(d.1)).

What it means for you#

• First Nations governments

  • You may run and license lottery schemes on your reserve after giving written notice to Canada and the province(s), stating the start date (Clause 1, new s.207(2.2)).
  • You may set licence terms and conditions by law, by-law, or licence (Clause 1, new s.207(2.1)).
  • You may enter agreements with provinces and other First Nations to sell each other’s tickets on your reserve or across borders (Clause 1, new s.207(1)(e), (e.1), (f.1)).
  • You may license charities, fairs, and operators on-reserve, including small-prize amusement games within set caps (Clause 1, new s.207(1)(b.1), (c.1), (d.1)).

• Charities and community groups

  • If licensed by a First Nation, you may run on-reserve lotteries for charitable or religious purposes; you may use computers for ticket sales, winner selection, and prize distribution in raffles (including 50/50 draws) (Clause 1, new s.207(1)(b.1), amended s.207(4.1)).

• Fairs, exhibitions, and amusement operators

  • You may run on-reserve lottery schemes if the First Nation designates the fair/exhibition and licenses you (Clause 1, new s.207(1)(c.1)).
  • You may offer small-prize games at public places of amusement on-reserve if licensed by the First Nation, with per-prize limits of $500 and ticket price limits of $2 (Clause 1, new s.207(1)(d.1)).

• Gaming businesses and suppliers

  • To operate on a reserve that has given notice, you will need a licence from the First Nation and must follow its laws, by-laws, and licence terms (Clause 1, new s.207(1)(a.1), (2.1), (g)).
  • Cross-jurisdiction operations require consent from the authority that first authorized the scheme (Clause 1, new s.207(1)(f), (f.1)).

• Consumers and players

  • On-reserve gaming and lottery activities may follow First Nation rules and licences. Provincial rules do not apply on-reserve after the First Nation’s notice date, for these activities (Clause 1, new s.207(4.001), (g)).
  • Sales of provincial lottery tickets on a reserve will require an agreement with the First Nation; without an agreement, sales on-reserve are not authorized (Clause 1, new s.207(1)(e.1)).

• Provincial governments and agencies

  • Your authority to license and manage lottery schemes will not apply on a reserve after a First Nation’s notice date, for Criminal Code s.207 matters (Clause 1, new s.207(4.001), (2.2)).
  • Ticket sales or cross-border schemes involving reserves will require agreements with First Nations (Clause 1, new s.207(1)(e), (e.1), (f)).

Expenses#

• Estimated net cost: Data unavailable.

• Key points from the bill text:

  • No direct federal appropriations, taxes, or fees are created by the bill (Bill text, all clauses).
  • The bill shifts authority and licensing power on-reserve but does not set revenue-sharing or funding formulas (Clause 1, new s.207; Clause 2).
  • Fiscal impacts on First Nations, provinces, charities, or operators depend on future licences and agreements. Data unavailable.

Proponents' View#

• Advances self-government by recognizing First Nations’ authority to regulate gaming on their lands, consistent with the preamble and the ability to enact by-laws (Preamble; Clause 2, Indian Act s.81(1)(m.1)).
• Creates clear legal control on-reserve by deeming the reserve not part of the province for Criminal Code s.207, reducing jurisdictional overlap (Clause 1, new s.207(4.001)).
• Enables own-source revenue opportunities through First Nation licensing and management, including cross-selling agreements with provinces and other First Nations (Clause 1, new s.207(1)(a.1), (e.1), (f.1)).
• Supports community benefits: First Nations can license charities and fairs; digital raffles for charitable purposes are expressly allowed (Clause 1, new s.207(1)(b.1), (c.1); amended s.207(4.1)).
• Provides a defined process and certainty through the written notice requirement and the ability to set licence terms (Clause 1, new s.207(2.2), (2.1)).

Opponents' View#

• Regulatory fragmentation risk: provinces and many First Nations could adopt different licence terms and standards; the bill sets no minimum uniform standards for consumer protection or responsible gambling (Clause 1, new s.207(2.1)).
• Disruption to current provincial lottery sales on-reserve if agreements are not reached, since on-reserve sales would require First Nation consent and agreements (Clause 1, new s.207(1)(e.1)).
• Implementation capacity concerns: some First Nations may face costs to create and enforce by-laws and licensing systems; the bill provides no funding or timelines (Clause 2; Clause 1, new s.207(2.1)). Data unavailable.
• Jurisdiction and enforcement complexity: the deeming rule removes provincial authority for these activities on-reserve, which may require new intergovernmental arrangements for cross-border operations and compliance (Clause 1, new s.207(4.001), (f), (f.1)).
• Oversight gaps: the bill does not specify audit, reporting, or integrity requirements; these are left to each First Nation’s by-laws and licences (Clause 1, new s.207(2.1)).