S-241FederalIndigenous

S-241 (45-1) - An Act to amend the Criminal Code and the Indian Act

Chamber

senate

Stage

2nd Reading

Introduced

Nov 20, 2025

Progress

This bill gives First Nations exclusive authority to run and license lottery schemes on their reserves.

Key Changes

  • First Nations governing bodies gain exclusive authority to conduct, manage, and license lottery schemes on their reserves
  • First Nations must provide written notice to the federal and provincial governments before exercising this new lottery authority
  • A reserve is legally deemed not to be part of the surrounding province for the purposes of lottery regulation, once notice is given
  • First Nations can enter cross-jurisdictional agreements with provinces or other First Nations to sell lottery tickets
  • Charitable and religious organizations, fairs, and other entities can run lotteries on reserves if licensed by the First Nation
  • Band councils gain the power to make by-laws regulating the operation of lottery schemes on their reserves under the Indian Act

Gotchas

  • The bill deems a reserve to be legally separate from the province for lottery purposes once notice is given, which could affect provincial revenue from gambling and create regulatory complexity at reserve boundaries
  • The bill applies both to bands under the Indian Act and to Indigenous groups with self-government agreements implemented by Parliament, but not to all Indigenous peoples or communities without such agreements or reserve lands
  • No federal oversight or approval mechanism is created beyond receiving written notice — the federal and provincial governments are notified but do not have veto power over a First Nation's decision to exercise this authority
  • The bill does not address problem gambling supports, consumer protections, or enforcement mechanisms on reserves, leaving these entirely to First Nations by-laws or existing laws
  • Cross-jurisdictional lottery agreements between First Nations and provinces are permitted but not required, meaning coordination may be inconsistent across the country

Who's Affected

  • First Nations band councils and Indigenous self-governing bodies
  • Provincial governments and their lottery corporations (e.g., OLG, BCLC, Loto-Québec)
  • Charitable and religious organizations operating on reserves
  • Businesses and operators wishing to run lotteries or gaming on reserve lands
  • Indigenous communities and reserve residents

Summary

Bill S-241 changes the Criminal Code and the Indian Act to recognize that First Nations have the right to conduct, manage, and license lottery schemes (like lotteries, raffles, and similar games) on their reserves. Currently, provinces have exclusive control over lotteries in Canada. This bill creates a parallel system where First Nations governing bodies can authorize gambling activities on their own lands, independent of provincial governments. To exercise this authority, a First Nation must give written notice to the federal government and any province where the reserve is located before starting. The bill also allows First Nations to enter into agreements with provinces or other First Nations to sell lottery tickets across jurisdictions, and permits charitable organizations, fairs, and other entities to run lotteries on reserves if licensed by the First Nation. The Indian Act is also amended to allow band councils to make by-laws specifically regulating how lottery schemes are operated on their reserves. The bill is grounded in the recognition of Indigenous self-determination, Treaty rights, and the UN Declaration on the Rights of Indigenous Peoples.

Automatically generated from bill text using Claude

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