Decree No. 30/2007/ND-CP dated March 01, 2007 of the Government on lottery business
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, March 01, 2007
ON LOTTERY BUSINESS
Pursuant to the December 25, 2001 Law on Organization of the Government;
At the proposal of the Minister of Finance,
Article 1.- Governing subjects and scope
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1. This Decree provides for lottery business activities of lottery business enterprises and concerned organizations and individuals in the territory of the Socialist Republic of Vietnam.
2. This Decree does not govern the organization of prize-winning programs of chance associated with the purchase of goods or services as a form of sales promotion under the Commercial Law.
Article 2.- Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Lottery business means business activities based on events with random results, which are organized on the principle that a lottery business enterprise collects customers money for participation in winning prizes and pays prizes to prizewinners.
2. Random results used for lottery business include:
a/ Random results of the appearance of a combination of numerals and/or letters;
b/ Random results of the appearance of a combination of symbols and/or signs;
c/ Other random results.
3. Traditional lottery means a type of lottery with tickets pre-printed with prices, numerals and letters for customers to choose in order to win prizes. The number of numerals and letters are limited within the number of issued lottery tickets, and winning results shall be determined after the issuance of lottery tickets.
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4. Customer means a participant in winning a lottery prize.
5. Lottery business enterprise means an enterprise established and operating under the provisions of this Decree and other relevant provisions of law to conduct lottery business.
6. Agent commission means a sum of money which a lottery business enterprise pays to a lottery agent according to a percentage of the value of sold lottery tickets.
7. Prize payment ratio means a ratio between the value of prizes and the value of issued lottery tickets or the lottery ticket revenue.
8. Lottery tickets are those issued by a lottery business enterprise for distribution to customers. Lottery tickets are issued in forms of certificate, card printed with a par value, or other forms or means which customers may use in order to participate in winning lottery prizes.
Article 3.- Lottery business principles
1. Only enterprises with certificates of full eligibility for lottery business granted by a competent state agency may conduct lottery business.
2. Lottery business shall be conducted in a transparent, objective and honest manner, and ensure protection of the rights and interests of involved parties.
Article 4.- Responsibilities of lottery business enterprises
1. To observe state regulations on lottery business.
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2. To conduct lottery business strictly according to the rules publicized to customers.
3. To make full and timely payment of prizes to prizewinners; to keep secret information on prize winning and prize receipt at the request of prizewinners.
4. To fulfill tax and financial obligations towards the State and observe the provisions of law in the course of conducting business.
Article 5.- Duties and benefits of lottery participants
1. Lottery participants shall observe state regulations on lottery business and rules publicized by lottery business enterprises and fulfill tax obligations towards the State in accordance with law.
2. Lottery participants have the following benefits:
a/ To get the full value of prizes they have won from lottery business enterprises. If due to objective causes (sickness, diseases, etc.) a prizewinner cannot personally receive his/her prize, he/she may authorize his/her lawful representative to receive the prize.
b/ Winners who are foreigners or overseas Vietnamese who lawfully enter Vietnam may use the prize money to purchase foreign currencies and transfer them abroad according to state regulations on foreign exchange management;
c/ To request lottery business enterprises to keep secret information on their prize winning and receipt;
d/ To be entitled to other lawful benefits according to the lottery participation rules publicized by lottery business enterprises.
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Article 6.- Prohibited acts
1. Illegally conducting lottery business in any forms or by any means.
2. Using results of lottery issued by lottery business enterprises to organize prize-winning programs.
3. Issuing foreign lottery tickets to domestic organizations or individuals.
4. Falsifying winning results.
5. Using state money to participate in lottery drawing.
6. Making fake lottery tickets in any forms.
7. Using lottery for money laundering.
8. Other acts as provided for by law.
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Article 7.- Types of lottery
1. Conventional lottery.
2. Optional lottery (manual or computerized lottery).
3. Instant lottery (scratch lottery or tear lottery).
4. Other types as provided for by law.
Article 8.- Lottery business places
Enterprises may conduct lottery business nationwide or in each region according to the Finance Ministry's regulations.
Article 9.- Lottery participants
1. Vietnamese citizens residing in the country.
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2. Overseas Vietnamese who lawfully enter Vietnam.
3. Foreigners who lawfully enter Vietnam.
Unless otherwise provided for by treaties to which Vietnam is a contracting party, lottery participants must be those having full civil act capacity under the provisions of Vietnamese law.
Article 10.- Lottery tickets
1. Lottery tickets are issued and distributed by lottery business enterprises to customers for participation in lottery drawing. Par values of lottery tickets shall be specified by the Finance Ministry in each period.
2. A lottery ticket contains the following details:
a/ Name of the issuing organization;
b/ Selling price;
c/ Serial number and code;
d/ Numerals, letters or random results for customers to choose;
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e/ Date of lottery draw or circulation duration;
f/ Anti-fake signs;
g/ Other relevant information.
Article 11.- Distribution of lottery tickets
1. A lottery business enterprise shall ensure the full supply of lottery tickets of each code which it has notified to issue for customers to choose drawing results.
2. Lottery business enterprises may distribute lottery tickets to customers by:
a/ Selling lottery tickets directly to customers;
b/ Selling lottery tickets through lottery agents;
c/ Selling lottery tickets by electronic equipment, telecommunications means or the Internet.
Article 12.- Lottery agents
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1. Lottery agent means an organization or individual that signs a contract with a lottery business enterprise to sell lottery tickets and pay prizes to prizewinners.
2. To operate as a lottery agent, an organization or individual must satisfy the following conditions:
a/ Being a Vietnamese citizen who permanently resides in Vietnam and has full civil act capacity; or being an economic organization lawfully set up and operating in Vietnam;
b/ Applying a payment security form specified in Article 13 of this Decree to secure payment obligations towards the lottery business enterprise.
3. A lottery agent is entitled to agent commissions based on the value of sold lottery tickets and payment charges based on the value of paid prizes.
Article 13.- Securing of fulfillment of lottery agents' payment obligations
A lottery business enterprise shall apply the following measures to secure the fulfillment of lottery agents' payment obligations:
1. Asset pledge.
2. Asset mortgage.
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4. Escrow account.
Article 14.- Structure of prizes
The number of prizes in each drive of issuance of lottery tickets shall be determined by lottery business enterprises to suit the prize payment ratio and the prize structure under the Finance Ministry's regulations.
Article 15.- Determination of winning results
1. The number of lottery draws by a lottery business enterprise shall be specified by the Finance Ministry in each period.
2. The determination of winning results must be public, objective and honest and comply with the publicized rules of lottery draw.
3. Lottery draw results must be supervised and certified by the Council for Supervising the Lottery Draw (the Lottery Supervision Council).
The Finance Ministry shall define the members, structure, tasks and powers of the Lottery Supervision Council.
Article 16.- Payment of prizes
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1. A lottery business enterprise shall pay the full value of prizes to prizewinners strictly according to the publicized rules of lottery participation.
2. The time limit for payment of prizes to customers is 60 days after the date on which winning results are determined or after the expiration of the duration of circulation of lottery tickets. Past this time limit, winning tickets are no longer valid for prize receipt.
3. Prizewinners may receive prizes in cash or by bank-account transfer.
Article 17.- Management of unsold and winning lottery tickets
1. Unsold lottery tickets shall be closely managed to ensure that they are not abused for prize receipt.
2. The duration for preservation, and the destruction of, unsold and winning tickets shall comply with the Finance Ministry's regulations.
INFORMATION, ADVERTISEMENT AND SALES PROMOTION
Article 18.- Information principles
1. Lottery-related information must be accurate and prompt and supplied by a competent organization or individual.
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2. A lottery business enterprise shall take responsibility for the accuracy and truthfulness of the publicized information.
Article 19.- Information details
1. State regulations on lottery business.
2. Rules for lottery participation; rules for lottery draw.
3. Number of issued tickets, serial numbers and codes of issued tickets, and structure of prizes.
4. Lottery prize-winning results.
Article 20.- Means and places for information publicization
1. Lottery-related information shall be publicized at lottery business enterprises' head offices, branches or representative offices, or places of lottery ticket issuance.
2. Information on lottery results may be publicized on the radio, television or in other mass media.
Article 21.- Advertisement for lottery
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1. Lottery business enterprises shall advertise lottery in accordance with law.
2. The following acts of advertising are prohibited:
a/ Making advertisement that winning is a certainty for lottery participants;
b/ Making advertisement that lottery participation will improve the financial situation of participants;
c/ Using images which infringe upon fine customs and habits and cultural traditions of the nation;
d/ Provoking law-breaking acts in lottery business;
e/ Other acts as provided for by law.
Article 22.- Lottery sales promotion
Lottery sales promotion is prohibited in any forms.
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LOTTERY BUSINESS ENTERPRISES
Article 23.- Lottery business enterprises
1. Lottery business enterprises are one-member limited liability companies in which the State owns 100% capital.
2. Construction lottery companies which are operating after the state company model shall carry out procedures for transformation into one-member limited liability companies in accordance with the Enterprise Law and its guiding documents.
Article 24.- Certificates of lottery business eligibility
1. The Finance Ministry shall grant certificates of lottery business eligibility and certify enterprises' eligibility for conducting lottery business.
2. A dossier of application for a certificate of lottery business eligibility comprises:
a/ A written application for a certificate of lottery business eligibility, clearly stating types of product proposed to offer;
b/ Documents relating to the establishment of the applying enterprise, including:
- The establishment decision; the decision on transformation of the enterprise from a state company into a one-member limited liability company, issued by the provincial/municipal People's Committee;
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- The business registration certificate, issued by a competent state agency.
c/ The enterprise's charter;
d/ Other relevant documents.
Article 25.- Revocation of certificates of lottery business eligibility
A lottery business enterprise shall have its certificate of lottery business eligibility revoked when:
1. It violates state regulations on lottery business.
2. Its business registration certificate is revoked.
3. It is dissolved or goes bankrupt under the provisions of law.
FINANCE, ACCOUNTING AND AUDIT
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Article 26.- Financial regime
1. The fiscal year of a lottery business enterprise starts on January 1 and ends on December 31 of a calendar year.
2. A lottery business enterprise may set up a prize payment risk reserve fund and account it as a business expense.
3. The Finance Ministry shall guide the financial management mechanism which is suitable to the specific characteristics of lottery business and can limit possible social negative impacts.
Article 27.- Accounting regime and reporting
Lottery business enterprises shall apply the accounting regime and make financial statements and operational reports in accordance with the Finance Ministry's regulations and relevant provisions of law.
Article 28.- Audit and publicization of financial statements
1. Financial statements of lottery business enterprises shall be audited annually.
2. At the end of a fiscal year, lottery business enterprises shall publicize their financial statements in accordance with law.
HANDLING OF VIOLATIONS
Article 29.- Acts of violation of the law on lottery business
1. Prohibited acts specified in Article 6 of this Decree.
2. Violation of regulations on issuance and distribution of lottery tickets.
3. Violation of regulations on lottery draws and payment of prizes to customers.
4. Violation of regulations on lottery advertisement and sales promotion.
5. Violation of regulations on financial management, accounting, statistics and audit.
6. Violation of competent state agencies' regulations on grant of business eligibility certificates, inspection, examination and supervision.
7. Illegal competition.
8. Supply of untruthful information, data or reports.
9. Other acts as provided for by law.
Article 30.- Handling of violations
1. Violating organizations or individuals shall, depending on the nature and severity of their violations, be administratively sanctioned or examined for penal liability.
2. Violating lottery business enterprises shall also be handled in the following forms:
a/ Confiscation of exhibits or means used in violations;
b/ Deprivation of the right to use business eligibility certificates for a given period of time;
c/ Imposition of restrictions on business areas or types of product to be dealt in;
d/ Revocation of business eligibility certificates.
ORGANIZATION OF IMPLEMENTATION
Article 31.- Responsibilities of the Ministry of Finance
1. To formulate and submit to competent authorities for promulgation strategies, plannings, policies and models for conducting lottery business.
2. To promulgate, and guide the implementation of, legal documents on lottery business.
3. To promulgate technical regulations on lottery business.
4. To grant and revoke certificates of lottery business eligibility.
5. To conduct inspection and examination, and handle violations of the law on lottery business.
6. To provide professional training on, and enter into international cooperation in, lottery.
Article 32.- Responsibilities of the Ministry of Public Security
1. To coordinate with the Ministry of Finance in guiding the application of measures to ensure social security, order and safety in lottery business.
2. To organize the fight against illegal lottery business activities.
Article 33.- Responsibilities of other state management agencies
1. Ministries, ministerial-level agencies and government-attached agencies shall, within the ambit of their tasks and powers, perform the state management of lottery business in accordance with law.
2. Provincial/municipal People's Committees shall, within the ambit of their tasks and powers, perform the state management of lottery business in their respective localities.
Article 34.- Implementation provisions
1. Within 12 months after this Decree takes effect, existing lottery business enterprises shall carry out procedures for application for business eligibility certificates in accordance with this Decree.
2. This Decree takes effect 15 days after its publication in "CONG BAO."
The Minister of Finance shall guide and organize the implementation of this Decree.
Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.