IMGL Magazine January 2024

CANADA

Void In Quebec: sweepstakes contests in La Belle Province

THE SWEEPING AWAY OF RESTRICTIONS ON SWEEPSTAKES IN QUEBEC SHOULD BRING SOME FUN TO THE 24% OF CANADIANS THAT LIVE THERE. WILL IT DELIVER IN PRACTICE? ASKS JACK TADMAN

V oid in Quebec. No, that’s not the latest tourism campaign of la belle province. “Void in Quebec” is a phrase that is synonymous with Canadian sweepstakes contests. Or at least it was synonymous with Canadian sweepstakes contests until recent legislative changes in Quebec removed most of the sweepstakes contest requirements for contests open to Quebec residents. This article will review sweepstakes contests and sweepstakes contest law in Canada and Quebec, summarize the recent legislative changes, and analyze how these changes will impact sweepstakes contest providers. Sweepstakes contests in Canada As IMGL Magazine readers know, gambling generally comprises three elements: consideration, chance, and prize. 1 As long as gambling has been defined by reference to consideration,

chance, and prize, entrepreneurs have been finding creative ways to remove one of those three elements thereby providing a game that it is like gambling but does not meet the appropriate tests. For example, an entity may remove the prize element by providing an online “play-for-fun” casino, where virtual chips may be purchased and risked on games of chance, but no real- money or money’s worth prizes are offered. Or, the element of chance may be removed, by providing skill games that do not contain a “systematic resort to chance”. 2 Finally, others may remove the element of consideration by running a contest that involves chance, prizes, and is free to enter. Brands run free-to-enter contests to promote their products and brand generally. Typically, an underlying product provided at fair market value, and a bonus item such as a contest entry or instant win opportunity is provided for free.

1 In Canada, for example, see R. v. Robinson (1917), 29 C.C.C. 153 (Sask. C.A.) 2 Chance is defined in Ross, Banks and Dyson v. the Queen (1968), 70 D.L.R. (2d) 606, [1968] S.C.R. 786, 1968 CarswellOnt 16 (S.C.C.)

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IMGL MAGAZINE | JANUARY 2024

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