N.L. government taking a pass on trying to increase profits from Chase the Ace
The lucky winner in the McIvers Chase the Ace draw Sunday took home $725,913. Event organizers netted a little more than a cool $1 million. So what did the provincial government gain from the popular lottery that spanned 50 weeks?
One per cent of the total prize payout: the grand prize, plus the 49 consolation prizes handed out week after week.
While the exact figure hasn't yet been totaled for McIvers, it will be about $10,000. And that much smaller windfall is just fine by Eddie Joyce, minister of Service NL, the government department that regulates Chase the Ace and other gambling events.
"Here's a group of volunteers, in the town of McIvers, who started this for come home year. And for 50 weeks, every Sunday plus during the week ... they donated their time to raise money for their community," he said.
Joyce's relaxed lottery attitude comes on the heels of the New Brunswick government announcing it was taking a closer look into Chase the Ace regulations because, as it stands, the province only gains a $25 permit fee from such lotteries.
There is no such licence fee for Chase the Ace in Newfoundland and Labrador, and it appears this province is willing to keep the status quo unchanged.
"It's definitely not on our radar to consider," Joyce told CBC Radio's Corner Brook Morning Show.
Spending restrictions
The proceeds from the McIvers madness will go towards the Come Home Year 2017 Committee, which originally hoped to net about $25,000 to make that party a memorable one for the small community of about 500 people.
With $1 million on its hands, organizers have said they're now hoping to help out other groups in the community, such as the fire department and local seniors' hall.
But it might not be that easy: Service NL lays out a myriad of rules for how proceeds can be spent, which restricts winnings from being used for municipal infrastructure or development, upkeep of service clubs or any activity considered to be "economic in nature."
The McIvers committee has 60 days to file its financial report, which must include details of how the proceeds will be used. While organizers will be sitting down to figure that out, they say the report will end up including a more general list than an itemized one — although the group can be audited for its spending several years afterwards.
Spike in popularity
Joyce said so far in 2016, 171 Chase the Ace licences have been issued in the province, already well surpassing last year's total of 102.
"Of course, these are regulated. There has to be an application come in and we regulate it, it has to go by the rules," said Joyce.
The rules, posted on the Service NL website, cover such details as ticket sales and prize structures. Joyce said in addition to those, the permit holder has 60 days upon conclusion of the event to submit a detailed statement, and if they don't comply, they risk not being granted another permit in the future.
"When someone's going to start Chase the Ace, you have to remember there are rules that have to be followed."
Joyce said he attended several of the Chase the Ace nights in McIvers, and applauded the community for its fundraising efforts.
