Most U.S. brands that "run promotions in Canada" are actually running illegal lotteries in Canada. The skill-testing question is not a suggestion — it is a structural requirement of Canadian criminal law. If you are a U.S. brand expanding a sweepstakes to include Canadian residents, you cannot simply extend your existing rules northward. Canada has a fundamentally different legal framework for promotional contests, and the compliance requirements diverge from U.S. practice in ways that are easy to overlook and costly to get wrong.

The core difference: Canada's Criminal Code prohibits lotteries, and the Canadian solution for making a sweepstakes legal is not the same as the American one. Understanding this distinction — and the provincial variations layered on top of it — is essential for any brand running promotions that include Canadian participants.

This article is for informational purposes only and does not constitute legal advice. Consult with a qualified attorney licensed in the relevant Canadian jurisdiction for guidance specific to your promotion.

Why Canada Is Different

Both the United States and Canada define an illegal lottery as a promotion that combines three elements: prize, chance, and consideration (something of value the entrant must give up to participate). If all three elements are present, the promotion is an illegal lottery.

In the United States, the standard approach is to eliminate consideration — typically by offering a free alternative method of entry (AMOE) so that no purchase is necessary to enter. This is the "no purchase necessary" framework that governs virtually every American sweepstakes.

Canada takes a different path. Rather than eliminating consideration, Canadian law eliminates chance — by requiring that the winner demonstrate skill before claiming a prize. The mechanism for this is the skill-testing question (STQ).

Under Section 206 of the Canadian Criminal Code, a promotional contest is lawful if it includes "a mode of selection" that involves skill or a combination of skill and chance. By requiring the selected winner to correctly answer a mathematical skill-testing question, the promotion is converted from a game of pure chance into a game that involves skill — and therefore falls outside the Criminal Code's lottery prohibition.

This is not a formality or a quaint tradition. It is a structural element of Canadian promotional law, and omitting it can make your promotion illegal under federal criminal law. For a deeper look at how the lottery/contest/sweepstakes distinction works in the U.S. context, see our comparison guide.

The Skill-Testing Question Requirement

The skill-testing question is administered to potential winners after they are selected — not to all entrants at the time of entry. Here is how it works in practice:

A winner is selected through the promotion's standard selection mechanism (random drawing, instant win, etc.)
The selected winner is contacted and asked to answer a skill-testing question
If the winner answers correctly, they are confirmed as the winner and proceed to prize fulfillment
If the winner answers incorrectly, they are disqualified and an alternate winner is selected

Standard Format

The standard skill-testing question is a multi-step mathematical equation that requires the entrant to perform basic arithmetic operations in the correct order.

Example: (25 x 4) + 17 - 12 = ?

The question must require the application of at least four mathematical operations — typically some combination of addition, subtraction, multiplication, and division. This is the established industry standard, supported by decades of legal practice and case law.

Answering Conditions

The winner must answer the question without assistance (no calculators, no help from others, no reference materials), within a reasonable time period (typically specified in the official rules — 5 minutes is standard), and correctly. The answer must be mathematically accurate. These conditions should be stated explicitly in both the official rules and the winner notification materials.

How Difficult Should the Question Be?

The skill-testing question exists in a narrow band between too easy and too hard. Canadian courts have not established a precise threshold for difficulty, but the legal principle is clear: the question must require genuine application of mathematical skill.

Too Easy

A question like "2 + 2 = ?" does not satisfy the requirement. It requires no meaningful skill, and a court or regulator could find that it fails to convert the promotion from chance to skill. Questions with fewer than four operations, or questions where the answer is immediately obvious, risk being found insufficient.

Too Hard

A question requiring advanced mathematics, specialized knowledge, or obscure formulas creates a different problem: it becomes a barrier to prize fulfillment. If winners routinely fail the question, the promotion's prize fulfillment rate drops and the marketing value of the promotion is undermined. It can also raise fairness concerns if the question difficulty is disproportionate to the promotion's casual nature.

The Standard

The widely accepted approach is basic arithmetic that a competent adult can solve with reasonable effort:

Addition, subtraction, multiplication, and division
At least four operations
Numbers that require actual calculation (not trivially obvious answers)
Order of operations applies (BEDMAS/PEMDAS)

Examples of acceptable questions:

(15 x 3) + 22 - 7 = ?
(100 / 5) x 3 + 18 - 4 = ?
(8 x 7) - 12 + (36 / 6) = ?

Avoid trick questions, ambiguous notation, or questions that test anything other than mathematical skill. The skill-testing question is a legal mechanism, not a game show challenge.

When the Skill-Testing Question Applies

The STQ requirement applies to any promotion that is:

Open to Canadian residents
Involves an element of chance in winner selection
Involves consideration (purchase requirement or other value exchange)

If the promotion is genuinely free to enter — meaning there is a true no-purchase-necessary alternative method of entry — some legal opinions hold that the STQ is unnecessary because consideration has already been eliminated (the U.S. approach). Under this theory, removing consideration is sufficient to avoid the Criminal Code prohibition, even without removing chance.

However, this is an area of legal debate, and the safer approach is widely considered to be including the STQ regardless of whether consideration is eliminated. The cost of including it is negligible (one question per winner), and the legal protection it provides is substantial. Most experienced promotional lawyers recommend including it for any promotion open to Canadian residents.

Quebec: The Exception Within the Exception

If Canada's promotional law framework is a departure from U.S. practice, Quebec's is a departure from the rest of Canada's. Quebec has its own comprehensive promotional contest legislation, administered by the Regie des alcools, des courses et des jeux (RACJ), and its requirements are significantly more burdensome than those of any other province.

Quebec Registration Requirements

Before launching a promotion that includes Quebec residents, sponsors must register the promotion with the RACJ before it begins and post a security deposit or bond if the RACJ requires a financial guarantee. All promotional materials and official rules must be available in French — not a summary, not a translation of the highlights, but a complete French equivalent.

On top of that, a percentage of the total prize value (typically 10% for prizes over certain thresholds) may be owed to the RACJ as a duty. Prizes above certain value thresholds trigger additional filing requirements. And Quebec law specifies exact language that must appear in promotional materials — you cannot paraphrase.

The Quebec Exclusion

Because of these requirements — particularly the registration process, the French-language mandate, the duties payable, and the filing complexity — many brands simply exclude Quebec residents from their Canadian promotions. The standard language is:

"Open to legal residents of Canada, excluding Quebec."

"Ouvert aux residents legaux du Canada, excluant le Quebec."

This is extremely common and is considered standard industry practice. Excluding Quebec is not inherently discriminatory — it reflects a legitimate business decision based on regulatory burden. Most major consumer brands exclude Quebec from their Canadian promotions unless the promotion is specifically designed for the Quebec market.

If you do include Quebec, work with a Quebec-licensed attorney who specializes in RACJ compliance. The requirements are detailed, the filings are time-sensitive, and the penalties for non-compliance are meaningful.

Provincial Requirements Beyond Quebec

Outside of Quebec, Canadian provinces generally follow the federal Criminal Code framework for promotional contests. There are no province-specific registration requirements comparable to the state registration requirements in the U.S.

However, several provinces have consumer protection legislation that applies to promotions in broader ways:

Ontario

Ontario's Consumer Protection Act includes provisions on unfair practices and misleading representations that apply to promotional advertising. There is no promotion-specific registration requirement, but misleading promotional materials can trigger enforcement under the Consumer Protection Act.

British Columbia

British Columbia's Business Practices and Consumer Protection Act similarly covers misleading promotional advertising. The province has taken enforcement action against promotions that misrepresented prize values or winning odds.

Alberta

Alberta's Consumer Protection Act includes provisions on unfair practices that can apply to promotions. Alberta has historically been less active in promotional enforcement than Ontario or British Columbia, but the legal framework exists.

National Advertising Standards

Ad Standards Canada (ASC) administers a self-regulatory code for advertising that applies nationally. While ASC complaints do not carry the force of law in the same way as provincial enforcement actions, adverse ASC rulings can result in required changes to advertising materials and reputational consequences. Promotional advertising must comply with the Canadian Code of Advertising Standards.

Bilingual Requirements

Language requirements in Canada are layered across federal and provincial jurisdictions:

Federal

For promotions in federally regulated industries (telecommunications, banking, broadcasting, transportation), promotional materials must be available in both English and French. This is a requirement of the Official Languages Act and applies regardless of which provinces the promotion targets.

Quebec

As noted above, Quebec requires all promotional materials and official rules to be available in French. This is not optional and is not satisfied by providing English materials with a French summary. The French version must be complete and equivalent.

Practical Approach

For promotions open to all Canadian residents (excluding Quebec), providing English-only materials is generally acceptable outside of federally regulated industries. However, best practice for national Canadian promotions is to provide both English and French versions of the official rules, entry forms and landing pages, promotional advertising materials, and winner notification communications.

This is especially important if the promotion involves any digital advertising that may be displayed to French-speaking Canadians outside Quebec. New Brunswick has a significant francophone population, and targeted digital ads do not respect provincial borders the way print ads once did.

Common Mistakes

These are the errors that U.S. brands most frequently make when extending promotions to Canada:

Omitting the skill-testing question entirely. This is the most fundamental error and can make the promotion illegal under the Criminal Code.
Making the STQ too easy or trivial. A two-operation question or an obvious answer may not satisfy the skill requirement.
Not excluding or registering in Quebec. Including Quebec residents without RACJ registration is a compliance failure. If you are not prepared to comply with Quebec law, exclude Quebec.
Not providing French-language materials. Even outside Quebec, failing to provide French materials for a national Canadian promotion creates risk — particularly in New Brunswick and for federally regulated industries.
Assuming U.S. sweepstakes rules work in Canada. The legal frameworks are structurally different. A promotion that is perfectly compliant in the United States may be illegal in Canada if it lacks an STQ.
Not adapting official rules for Canadian legal terminology. Canadian official rules should reference the Criminal Code, use "contest" rather than "sweepstakes" (the standard Canadian term), and address Canadian-specific requirements like the STQ and bilingual provisions.
Ignoring PIPEDA. The Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection, use, and disclosure of personal information in commercial activities. If you are collecting personal data from Canadian entrants, you must comply with PIPEDA's consent, disclosure, and data protection requirements. This is a separate compliance domain from promotional law.

U.S. Brands Running Promotions in Canada

If your promotion is open to both U.S. and Canadian residents, you need to address both countries' requirements in a single set of official rules (or provide country-specific supplements). Here is the minimum additional compliance work for adding Canada:

Official Rules Modifications

Include an STQ provision for Canadian winners (specify the format, the timing, and the consequence of an incorrect answer)
Address Quebec inclusion or exclusion explicitly
Reference the Canadian Criminal Code and applicable provincial consumer protection legislation
Use "Contest" or "Promotional Contest" terminology in the Canadian section (not "Sweepstakes")
Address PIPEDA compliance in the privacy section

Operational Requirements

Build the STQ administration into your winner fulfillment workflow — Canadian winners must be contacted, presented with the question, and their answer must be recorded
Prepare French-language materials if the promotion is open to Quebec or if your industry is federally regulated
Confirm your data handling practices comply with PIPEDA for Canadian entrant data

Planning Considerations

Adding Canada to a U.S. promotion is not as simple as changing "50 U.S. states" to "50 U.S. states and Canada." The STQ, Quebec, bilingual, and PIPEDA requirements each add compliance work. However, for brands targeting the North American market, the incremental effort is justified by access to 38 million additional consumers.

For guidance on managing multi-jurisdiction promotions more broadly, see our guide to running promotions across multiple states and our overview of international sweepstakes rules.

How Comprizant Handles Canadian Promotions

Comprizant supports Canadian promotional compliance as part of its multi-jurisdiction engine:

Skill-testing question generation. The platform generates compliant STQs using the standard multi-operation mathematical format, with configurable difficulty levels.
STQ administration workflow. When a Canadian winner is selected, the platform routes them through the STQ step before proceeding to prize fulfillment. Answers are recorded and timestamped.
Quebec inclusion/exclusion. Campaign configuration includes explicit Quebec handling — either exclusion language inserted into the official rules, or RACJ filing support if Quebec is included.
Bilingual rules generation. Official rules can be generated in both English and French, with equivalent content in both versions.
PIPEDA-compliant data handling. Canadian entrant data is collected and stored in compliance with PIPEDA requirements, including consent management and data retention policies.
Canadian legal terminology. The compliance engine automatically adapts terminology, statutory references, and disclosure language for Canadian jurisdictions.

Key Takeaways

Canada eliminates "chance" via skill-testing questions; the U.S. eliminates "consideration" via no-purchase-necessary. These are fundamentally different legal approaches.
The standard STQ is a multi-step math equation with at least four operations. It must be answered without assistance.
Include the STQ for all Canadian participants, even in no-purchase-necessary promotions. The legal protection is worth the minimal operational cost.
Quebec has its own registration, bonding, duty, and French-language requirements administered by the RACJ. Most brands exclude Quebec unless they are specifically targeting that market.
Outside Quebec, provinces follow the federal Criminal Code framework without promotion-specific registration.
French-language materials are required for Quebec inclusions and federally regulated industries. They are best practice for all national Canadian promotions.
PIPEDA governs the collection and use of personal data from Canadian entrants. It is a separate compliance obligation from promotional law.
U.S. brands adding Canada must modify their official rules, build the STQ into their fulfillment workflow, and address bilingual and privacy requirements.

The brands that succeed in cross-border promotions are the ones that treat Canadian compliance as a distinct workstream — not an afterthought appended to U.S. rules.

Ready to run compliant promotions in Canada? Get started with Comprizant and let the platform handle skill-testing questions, provincial requirements, and bilingual rules generation automatically.