The decision to open contests to residents of that province will rest largely on whether a franchisor wants to deal with its regulator, the Regie des alcools, des courses et des jeux, which governs all contests “launched to the public.” Unless the total prize value is less than $2,000, you are required to register your contest with the Regie.
Further, the province’s Lotteries Act allows the Regie to require you to post security for contests open to Quebec residents where you do not have a place of business in Quebec, the value of any single prize exceeds $5,000 or the total prize value exceeds $20,000.
This provides security for the prizes until they have been awarded or until the Regie has been notified there are no winners in Quebec. Also, the rules and any advertising relating to the contest must be filed at least 10 days before the start of the contest, and should be filed in French unless the contest will be carried only in English media.
Franchisors should also be aware of the Regie’s imposition of a tax of 3% on the total prize value for national contests or 10% of the value of prizes allocated to Quebec residents, and there are penalties for late payments and late filings.
For these reasons, some franchisors prefer to exclude Quebec residents from contests and, if they choose to do so, the rules must make this clear.