Some P.E.I. Chase the Ace groups question provincial fees
CBC News | Posted: February 28, 2018 11:00 AM | Last Updated: February 28, 2018
'We're doing all the work and they're taking a bit of our money'
Some volunteer groups that run Chase the Ace-type draws wish they didn't have to hand over some of their money to the P.E.I. government.
The province charges two per cent on any prizes awarded over $1,000 as part of its lottery licence requirements.
"I'm not really in favour of them," said Rikki Schock, president of the Belfast Fire Department.
"We're doing all the work and they're taking a bit of our money," she said.
Schock has volunteered many hours the last three years selling tickets for the Deuce is Loose draw in the small rural community of Belfast.
The draws raise money for the Belfast Fire Department, The Lions Club and the Belfast rink.
Organizers have paid out about $2,000 in fees over that time. Schock would prefer just paying a flat licence fee.
"To pay the two per cent on what we pay out is a little bit much," she said.
'You certainly notice'
The North River Fire Department and Kingston Legion Chase the Ace jackpot was more than $1 million in 2016.
The groups each received $700,000 and paid out $31,923 in fees to the government.
Anson Grant, the chief of North River Fire Department, called it a "tax grab," but is more understanding of the fees in light of the groups' success with the fundraiser.
"It's chump change in the big scheme of things," Grant said.
It is valuable to have someone controlling the lotteries and providing support and advice, Grant said.
"It could get out of hand," said Grant. "I was one of the ones signing the cheques so you certainly notice especially as the lottery grew larger."
Grant suggested capping the fees once they reach a certain amount.
"It's a lot of extra money coming off the charities' bottom line," he said.
Province says fees justified
The province couldn't say exactly how much Chase the Ace-type draws had brought in. It did share that overall, lottery licences including six Chase the Ace draws brought in revenue of just under $190,000 in 2014-2015. That jumped to almost $215,000 the next year including 51 such draws and grew again to almost $270,000 with 49 draws last year.
"There seemed to be every day there were a lot of licence requests coming in," said Adam Peters, manager of consumer service with the province.
The fees are justified, Peters said, since there are administration costs and paperwork for the province, especially when the lotteries grow larger.
The money collected goes back into P.E.I.'s Justice and Public Safety Department.
- MORE P.E.I. NEWS | Family of Indigenous woman reassured her death was an accident, say Charlottetown Police
- MORE P.E.I. NEWS | P.E.I. group happy lighthouse being 'cared for'
- A previous version of this story stated that provincial revenues from Chase the Ace-type lotteries brought in revenue of almost $190,000. In fact, that was revenues from all lottery licences in that year. February 28, 2018 12:57 PM