Bill S-268 amends Criminal Code section 207 to recognize that a First Nation’s governing body (band council or equivalent self-government authority) has exclusive authority to conduct and manage lottery schemes on its reserve and to license others to do so. The bill adds specific categories of authorized lottery activity on reserves (including charitable raffles, fair/exhibition lotteries and limited public-place games), allows the governing body to set licence terms and to designate other persons or authorities to exercise licensing powers, and requires written notice to Canada and the provinces before a First Nation begins exercising that authority.
The bill also amends subsection 81(1) of the Indian Act to give band councils explicit by-law power to regulate the operation, conduct and management of lottery schemes permitted on reserve under the amended Criminal Code. Practically, the measure is an attempt to place gaming regulation on reserves under Indigenous control, while creating mechanisms for interjurisdictional sale and for provinces and First Nations to enter reciprocal arrangements — with important questions about jurisdictional limits, enforcement and revenue flows left for implementation.
At a Glance
What It Does
The bill adds First Nations as express authorities under Criminal Code s.207 to conduct, manage and license lottery schemes on their reserves, and permits them to issue licences that include conditions and to designate other persons or authorities to act. It also mandates written notice to the federal government and relevant provinces before exercising that authority and creates a deeming clause that treats the reserve (or part) as not part of the province from the notice date for the purposes of s.207.
Who It Affects
Band councils and Indigenous self-government authorities, provincial governments and provincial lottery corporations, charitable organizations and fair/exhibition operators wanting to run lotteries on reserves, and private operators who would seek licences from First Nations. Federal enforcement and Indigenous governments will also be involved in implementation and dispute resolution.
Why It Matters
The bill shifts formal regulatory control over on-reserve lottery activity to Indigenous governing bodies, a notable legal recognition of Indigenous authority over a revenue-generating sector. That creates new pathways for First Nations revenue and governance but also raises interjurisdictional and enforcement issues with provinces and existing provincial gaming monopolies.
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What This Bill Actually Does
Bill S-268 inserts First Nations’ governing bodies directly into Criminal Code section 207 as lawful authorities to conduct and manage lottery schemes on their reserves and to issue licences authorizing others to do so. The governing body can act alone or jointly with another First Nation or a person or authority it designates, and licences may carry terms and conditions the governing body prescribes.
The text recognises multiple authorized categories: lotteries run by the governing body itself, charitable or religious organization raffles under a First Nation licence, fairs or exhibitions designated and licensed by the governing body, and small prize public-place games with explicit monetary limits.
The bill adds concrete licence mechanics. A licence issued by or under authority of a governing body may include terms and conditions relating to conduct, management, operation and participation.
The governing body may also specify other persons or authorities to exercise licensing powers on its behalf, which creates room for delegated regulatory arrangements or administrative agents. For interjurisdictional operations, the bill keeps the existing model of mutual consent: provinces or other authorities that originally authorized a scheme must consent before it is conducted on a reserve, and the governing body may enter agreements allowing sale of tickets across boundaries.Before a First Nation begins exercising its new authority, its governing body must give written notice to the Government of Canada and to the government of any province in which the reserve is located, stating the date it will begin.
Once notice is given, the bill contains a deeming provision that, for the purposes of s.207, treats the reserve or part of it as not part of the province as of the notice date. The bill also clarifies definitions (band, council of the band, First Nation, governing body, reserve) to cover both bands and Indigenous groups that are parties to self-government agreements implemented by Parliament.Finally, the Indian Act is amended to add the regulation of lotteries to the list of matters on which a band council may make by-laws.
The Criminal Code refinement retains certain existing carve-outs — for example, a computer-based raffle remains excluded from a particular prohibition when authorized and for charitable purposes — while introducing explicit small-prize limits for public place amusement lotteries (prizes up to $500, tickets up to $2). Together, the Criminal Code and Indian Act changes create a statutory framework that affirms First Nations’ control over on-reserve lotteries while leaving a role for intergovernmental agreements and delegated licensing arrangements.
The Five Things You Need to Know
A First Nation’s governing body may conduct and manage lottery schemes on its reserve or license others to do so, either alone or jointly with another First Nation or designated person/authority.
Before exercising lottery authority, the governing body must provide written notice to the federal government and to each provincial government in which the reserve is located specifying the date it will begin.
On notice, the bill deems the reserve or part of it not to be part of the province for the purposes of Criminal Code s.207, affecting which laws and licences apply to lotteries conducted there.
The bill sets explicit small‑prize retail limits for licensed public‑place lotteries on reserve: each prize must not exceed $500 and each chance must not cost more than $2.
Subsection 81(1) of the Indian Act is amended to give band councils by-law authority to regulate the operation, conduct and management of lottery schemes permitted on their reserve under the Criminal Code.
Section-by-Section Breakdown
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Adds First Nations and specific authorised on-reserve lottery categories to s.207
These paragraphs insert new authorised classes into Criminal Code s.207(1), explicitly recognizing governing bodies of First Nations as lawful actors for conducting and licensing lotteries on reserves. They also create tailored authorizations for charitable/religious organisation raffles under First Nation licences, fairs/exhibitions that a governing body designates and licences, and limited public-place amusement lotteries with numeric limits. Practically, this rewrites the list of lawful lotteries to include on-reserve activity under Indigenous authority rather than leaving it subject only to provincial frameworks.
Licence powers, terms and notice requirement
This provision lets licences issued by or under authority of a governing body contain any terms and conditions relating to conduct, management and operation that the governing body, its designee, or its by-laws prescribe. Importantly, it requires written notice to the Government of Canada and relevant provinces before a First Nation exercises its s.207 authority, making the exercise of authority a publicly flagged regulatory event and triggering downstream legal effects in the bill.
Deeming clause and definitions
The bill adds a deeming clause that, for the purposes of s.207, treats a reserve or part of a reserve as not part of the province as of the notice date — a device that aims to delineate which jurisdiction’s authorizations govern the lottery activity. It also supplies definitions for band, council of the band, First Nation, governing body and reserve so the new regime covers both Indian Act bands and Indigenous groups under self-government agreements, clarifying who has authority to act.
Computer raffle exception preserved for charitable draws
The bill replaces subsection 207(4.1) to ensure that the existing carve-out — permitting use of computers for sale of tickets, winner selection and prize distribution in raffles, including 50/50 draws — continues to apply where those raffles are authorised under the new First Nation licence categories and proceeds go to charitable or religious purposes. This preserves a common fundraising mechanism while bringing it within the First Nation licensing framework.
Agreements and consent model for cross‑jurisdiction sales and schemes
The bill extends the existing interprovincial consent model to First Nations: provinces and First Nations may agree that tickets for schemes authorised elsewhere may be sold on a reserve, and a scheme originally authorised in a province or another reserve may operate on a given reserve only with the consent of the authority that first authorised it. This preserves reciprocal arrangements but now includes First Nations as potential contracting parties and consenting authorities.
Indian Act by-law power for band councils
This amendment adds to subsection 81(1) of the Indian Act the explicit ability for a band council to make by-laws regulating the operation, conduct and management of lottery schemes permitted on the reserve under Criminal Code s.207. That gives councils a statutory instrument to set local regulatory rules, compliance obligations and penalties subject to the Indian Act’s requirement that by-laws not be inconsistent with federal regulations.
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Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Band councils and Indigenous self-government authorities — gain explicit statutory control over lotteries on their reserves, enabling revenue generation, local regulatory frameworks and delegation of licensing to fit community priorities.
- First Nations communities seeking local programs and services — can capture proceeds from licensed lotteries and tailor licence conditions to fund community priorities or local charities.
- Charitable and religious organizations operating on reserves — may run raffles and fundraising draws under a First Nation licence, with existing computer-raffle exceptions preserved for charitable purposes.
- Fair and exhibition boards and concession operators on reserves — can be designated and licensed to operate lottery schemes at events when approved by the governing body, opening pathways for event-based fundraising and commerce.
Who Bears the Cost
- Provincial governments and provincial lottery corporations — face potential loss of control over gaming activity on reserves, possible reductions in ticket sales or revenue streams, and the need to negotiate new agreements with First Nations.
- Private gaming operators selling across jurisdictions — will need to secure consent from original authorizing authorities and obtain licences from First Nations to operate on reserves, adding transactional and compliance costs.
- First Nations governments — while empowered, bear administrative and regulatory costs to establish licensing systems, draft by-laws, enforce licence conditions and manage disputes or compliance oversight.
- Federal agencies and courts — may face increased administrative workload and litigation as notice, deeming and jurisdictional questions produce intergovernmental disputes and legal challenges.
Key Issues
The Core Tension
The central tension is between two legitimate objectives: respecting and expanding Indigenous self-determination over economic activity on reserve land (including the ability to generate revenue and set local rules) versus maintaining coherent consumer protection, public‑safety, and revenue regimes that provinces have historically administered for gambling; the bill hands control to First Nations but leaves unresolved how to reconcile differing regulatory standards, enforcement responsibilities and fiscal impacts across jurisdictions.
The bill attempts to square Indigenous regulatory authority with the existing interprovincial framework for lotteries by saying First Nations can lawfully run and licence lotteries on reserves and by creating a notice-triggered deeming rule. That deeming device is unusual: it treats the reserve (or part of it) as not part of the province for the purposes of s.207, but it does not catalogue how provincial laws of general application, consumer-protection statutes, health and safety rules, or taxation regimes will apply post-notice.
Practically, this creates a grey area where provincial regulators and provincial lottery corporations may resist or seek revenue-sharing arrangements, and where operators will need clarity about which statutes and enforcement regimes govern a given activity.
The bill delegates significant discretion to governing bodies — including the right to specify other persons or authorities to issue licences and to set licence terms and conditions — but it provides little detail about licensing standards, administrative processes, anti-money-laundering controls, age verification for gambling, or dispute-resolution mechanisms. That raises implementation questions: how will smaller bands build the regulatory capacity required for robust licensing and enforcement, who will audit compliance, and what baseline standards (if any) will protect participants and charities?
The interjurisdictional consent model preserved in the text reduces outright conflict but shifts the political and negotiation burden to provinces and First Nations to strike compacts covering ticket sales, online access and revenue-sharing.
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