New Brunswick

New Brunswick considers rule changes for Chase the Ace

As Chase the Ace raffles grow in popularity, the New Brunswick government is closely watching the phenomenon and considering rule changes in its charitable gaming regulations to address the raffles.

Province collects $25 permit fee for charity raffles that can bring in $1M or more

If the person who is drawn to pick a card in the Dalhousie Chase the Ace draw on Thursday selects the ace of spades, he or she will win an estimated $1.25 million. (CBC)

As Chase the Ace raffles grow in popularity, the New Brunswick government is closely watching the phenomenon and considering rule changes in its charitable gaming regulations to address the raffles.

In Dalhousie on Thursday evening, the Dalhousie Rotary Club will stage the latest draw in its Chase the Ace raffle. With six cards remaining, the estimated jackpot if the person chosen draws the ace of spades is $1.25 million.

The estimated jackpot in Dalhousie's Chase the Ace raffle with six cards remaining is $1.25 million. (Facebook/Dalhousie Rotary Club)
Out of that $1.25 million and the money collected and held by the Rotary Club to repair the local pool, the New Brunswick government will receive $25 — the cost of the permit for a charitable gaming activity with a prize of more than $500.

However, if the gambling dollars spent on Dalhousie's Chase the Ace raffle were instead spent on lottery products from the Atlantic Lottery Corp., New Brunswick's coffers would be far richer.

Based on its corporate results, Atlantic Lottery Corp. says at least $360,000 of every $1 million in total lottery sales is returned to the New Brunswick government.

In 2015-16, Atlantic Lottery returned $132.2 million in net profits from lottery sales to the New Brunswick government.

Rule changes in the works

Paul Bradley, a spokesman for the Department of Public Safety, said the province is considering rule changes for Chase the Ace raffles.

"As this game continues to grow in popularity, we are observing and developing best practices," stated Bradley in an emailed statement.

We are currently working to broaden our rules to specifically address Chase the Ace raffles.- Paul Bradley, Public Safety spokesman

"We are currently working to broaden our rules to specifically address Chase the Ace raffles."

Bradley said it would be premature to say whether rule changes could include a higher fee or a share of the raffle proceeds being remitted to the province.

It was also too soon for a government official to be interviewed on the topic, he said.

Charitable gaming rules

There are just six cards left to draw in the Chase the Ace fundraiser in Dalhousie. (Serge Bouchard/Radio-Canada)

New Brunswick's lottery regulations allow charitable organizations to apply for permits to hold games of chance to raise funds. The games permitted under the charitable gaming program are:

  • Raffles
  • Bingo (including giant bingo and media bingo)
  • Charitable Texas Hold'em tournaments
  • Monte Carlo nights
  • Bingo event break-open tickets

Bradley said Chase the Ace is classified as a raffle and is legal under the Gaming Control Act.

"Bingo and hospital lotteries are other examples of charitable games that may also offer lucrative prizes," said Bradley.

"The province does not receive any percentage of these jackpots regardless of lucrative they become."

ALC also watching

For years, Atlantic Lottery Corp. has been pointing to online gambling and struggle it has had to keep gambling dollars in the region where they are spent.

The lottery corporation has yet to make a public statement about competing with Chase the Ace games for gambling dollars, but it has been looking into the raffles.

We have not established an absolute relationship between our sales and Chase the Ace draws.- Christine Manore, ALC spokeswoman

"Chase the Ace has become an incredible phenomenon and we are supportive of any regulated means charities are using to generate much-needed funds," said ALC spokeswoman Christine Manore.

"We have been looking into these raffles and so far, we have not established an absolute relationship between our sales and Chase the Ace draws," said Manore in an emailed statement.

"There are so many variables that affect our sales: jackpots, new games, even weather."

The charitable licence fee varies slightly in the other three Atlantic provinces, she said.

ABOUT THE AUTHOR

Alan White is a Fredericton native who has been working as a journalist since 1981, mostly in New Brunswick. He joined CBC in 2003 and is now a senior producer. He can be reached at alan.white@cbc.ca