section 204(1)


204(1) Sections 201 and 202 do not apply to (a) any person or association by reason of his or their becoming the custodian or depository of any money, property or valuable thing staked, to be paid to (i) the winner of a lawful race, sport, game or exercise, (ii) the owner of a horse engaged in a lawful race, or (iii) the winner of any bets between not more than ten individuals; (b) a private bet between individuals not engaged in any way in the business of betting; (c) bets made or records of bets made through the agency of a pari-mutuel system on running, trotting or pacing horse-races if (i) the bets or records of bets are made on the race-course of an association in respect of races conducted at that race-course or another race-course in or out of Canada, and, in the case of a race conducted on a race-course situated outside Canada, the governing body that regulates the race has been certified as acceptable by the Minister of Agriculture and Agri-Food or a person designated by that Minister pursuant to subsection (8.1) and that Minister or person has permitted pari-mutuel betting in Canada on the race pursuant to that subsection, and (ii) the provisions of this section and the regulations are complied with.