4.  DISTRIBUTION OF GROSS REVENUE

(a)        All of the Net Proceeds of the Breakopen Gaming shall be retained by the licensee and used exclusively for the authorized charitable object or purpose.

(b)        No prize, other than provided for in the game structure of the Game Units sold, shall be paid.

(c)        Only allowable expenses, as determined by the Authority, shall be paid in the conduct of any Breakopen Gaming.  

5.  GENERAL CONDITIONS

(a)       Requested amendments to any Licence shall be submitted in writing by the authorized representative of the Licensee for approval of the Authority, the submission of which does not imply any approval by the Authority.

(b)       Licences are not transferable or assignable.  No “donations” or other payments are permitted to any person or group who sell or assist in the sale of Breakopen Tickets in exchange for such “donation”.

(c)      The Authority may attach any special terms or conditions to any Licence as the Authority deems necessary, which shall become part of the general Terms and Conditions of the Licence.

(d)       Licensee shall purchase and sell only Game Units approved by the Authority and purchased from a distributor authorized by the Authority.

(e)       A Licensee shall not lend or borrow any Game Units, opened or unopened, other than from the authorized distributor of Breakopen Tickets.

(f)         Every Licence to conduct and manage a lottery scheme shall be subject to the term and condition that the Authority may, when the licence is in effect, prescribe amendments to the terms and conditions of the Licence, effective no less than ten (10) days after the Authority sends a copy of the amendments by ordinary mail addressed to the Licensee at its last known address.

6.  CONDUCT OF BREAKOPEN GAMING

Licensee managing or conducting Breakopen Gaming shall:

(a)        Supervise and be responsible for the conduct and management of every aspect of the Breakopen Gaming, including the collection of money, and the payment of prizes and expenses.

(b)        Conduct all Breakopen Gaming only at and within the confines of the location approved by the Authority which appears on the licence issued by the Authority.

(c)        Post in a conspicuous place at the facility for the Breakopen Gaming a copy of the Licence.

(d)        Not pay the Breakopen Gaming workers any remuneration, per diem, honoraria, or any other form of direct or indirect compensation or consideration for the service provided.

(e)        Offer for sale every ticket of every Game Unit opened.

(f)          Ensure that Game Units are not tampered with, such that the entire prize pool within each Game Unit is intact and offered for sale in its entirety.

(g)        Not directly or indirectly communicate with, or indicate to any person that status of any partially sold Game Unit, particularly as it relates to the quantity of winning game tickets left available for sale.

(h)        Ensure Breakopen Tickets sold shall be exchanged for Canadian currency.

(i)          Not extend credit.

(j)          Pay all winners in cash immediately upon presentation of a valid winning ticket.

(k)        Not sell, or offer for sale, Breakopen Tickets directly from the original packaging in which the tickets were purchased and must thoroughly mix tickets prior to selling.

(l)          Ensure all Breakopen Ticket sales are final.

(m)      Keep every Game Unit purchased from the authorized supplier sealed, intact and unopened in the original seal or packaging and in safe keeping until the unit is offered for retail sale.

(n)        Keep partially sold Game Units secure to ensure the integrity of the unsold game tickets until the next retailing opportunity.

(o)        Ensure that no Breakopen Tickets are destroyed without prior approval from the Authority.

(p)        Ensure that Breakopen Ticket patrons have, at all times, full and equal chance to purchase all winning tickets in every Game Unit offered for sale.  No portion of the Game Unit shall be held back from sale.

(q)        Prohibit volunteers from purchasing or playing Breakopen Tickets during any Breakopen Gaming at which they work.

(r)         Ensure that Gaming Employees, or employee of a Licensee, do not purchase Breakopen Tickets in the hall or premises in which they are employed.

(s)        Include the full name as it appears on the Licence of the Licensee, in any advertising in print, radio, television or any other media, but shall exclude insertion of the Licence number itself.

(t)         Observe and comply with all applicable municipal, provincial and federal laws.

(u)        Report immediately, in writing, to the Authority, any cheating or other gaming irregularity, known or suspected.

(v)         Prohibit sale of Breakopen Tickets in any retail outlet unless same retail outlet is covered by a special Licence.

(w)       Prohibit persons under the age of sixteen (16) years of age from purchasing or being involved in the sale of Breakopen Tickets. 

7.  BANKING

The Licensee shall:

(a)       Open and maintain a separate and distinct bank account for Breakopen Gaming funds or maintain a single bank account for Bingo and Breakopen proceeds only.  Should the Licensee elect to maintain a single lottery bank account, deposits for each lottery’s proceeds shall be made on separate deposit slips.

(b)       Deposit all funds from Breakopen Gaming into the lottery bank account no later than the second banking day following the gaming, such that for each day that Breakopen Gaming is conducted, there is a corresponding deposit.

(c)       Hold all funds on deposit in the lottery bank account until such funds are required for the authorized charitable purpose.

(d)       Make all disbursements from the lottery bank account by cheque directly to the licensed charitable purpose.  Funds may NOT be transferred to a “general” or any other account prior to disbursement for the authorized charitable purpose.

(e)       Ensure any and all interest paid into a lottery bank account becomes subject to the licensed charitable spending restrictions as though such interest was earned as part of lottery proceeds.

(f)         NOT lend proceeds or any portion of the lottery Gross Revenue to any person or group for any purpose without the express written consent of the Authority.

8.   ACCOUNTING AND FINANCIAL REPORTING

All breakopen licensees shall:

(a)       Complete a report of all unsold inventory on the report forms provided by the Authority.  This report shall be filed 30 days prior to the conclusion of the licence or as otherwise instructed by the Authority.

(b)       Prepare and maintain a register/journal to accurately reflect and describe all transactions occurring in the lottery bank account including the following details of all disbursements of proceeds made from the account:

                               (i)      cheque number;

                             (ii)      date of cheque;

                            (iii)      payee;

                            (iv)      dollar amount;

                              (v)      purpose.

(c)       In the case where the Licensee ceases to conduct Breakopen Gaming, retain any partial Game Units unsold at the conclusion of a Licence and maintain them in a secure place until permission has been received from the Authority to destroy them.

(d)       Retain all records relating to all Breakopen Gaming for a minimum of three (3) years from the date of expiry of breakopen licence including:

                               (i)      breakopen purchase invoices;

                             (ii)      deposit book(s) slips;

                            (iii)      lottery bank account statements;

                            (iv)      cancelled cheques;

                              (v)      copies of unsold inventory reports made to the Authority;

                            (vi)      cheque register(s);

                           (vii)      synoptic ledgers/journals;

                         (viii)      receipts and/or invoices.

     When the breakopen license is held by the Class “A” bingo
     licensee, the licensee shall in addition to the above:

(e)       Complete a Breakopen Gaming Event Close-Out Summary report on forms prescribed, or approved, by the Authority for each Breakopen Event.  These forms will be completed on an event basis to reconcile cash to inventory and will be the source of the information included in the monthly report described in section 8(b).

(f)         Complete in detail an association Monthly Breakopen Event Log showing all breakopen event gaming activity conducted during the month at the Class “A” location.  (One Monthly Breakopen Event Log can be submitted to accommodate all breakopen activity at that location)  The Monthly Breakopen Event Log shall be submitted to the Authority within five (5) days following the end of each calendar month.

(g)       Complete a quarterly Association Breakopen Disbursement Report signed by each Class “B” licensee for their cash received.  The Association Breakopen Disbursement Report shall be submitted to the Authority within five (5) days following the end of each quarter.

(h)       Disburse proceeds to each Class “B” licensee conducting bingo events during the three (3) month period based upon a prorated share calculated by the number of events conducted.  Cash received must be deposited into the Class “B’s” lottery bank account and is subject to the allowable spending guidelines as indicated on their bingo licence budget letter.

(i)         Obtain Authority approval for all expenses prior to disbursement.  The licensee shall be allowed to cover expenses for the purchase of breakopen tickets.