Decree No. 105/2010/ND-CP on administrative penalties for lottery business activities

  DECREE

Rules on administrative penalties for lottery business activities

____________________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Administrative Violation Handling Ordinance No. 44/2002/PL-UBTVQH10 dated July 2, 2002, and the Ordinance Amending and Supplementing Certain Provisions of the Administrative Violation Handling Ordinance No. 04/2008/UBTVQH12 dated April 2, 2008;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. Administrative penalties for violations related to lottery business activities shall be applied to individuals and organizations (hereinafter referred to collectively as individuals and organizations) who intentionally or negligently violate the provisions of the law on lottery business activities that do not constitute criminal offenses and must be subject to administrative penalties according to this Decree.

2. This Decree applies to Vietnamese individuals and organizations; foreign individuals and organizations operating within the territory of the Socialist Republic of Vietnam who commit administrative violations related to lottery business activities as stipulated in this Decree.

3. Other administrative violations related to lottery business activities not specified in this Decree shall be subject to administrative penalties according to other regulatory legal documents concerning administrative penalties in relevant state management areas.

Article 2. Principles of Penalty Application

1. All administrative violations related to lottery business activities must be promptly detected and immediately halted. The application of administrative penalties for violations related to lottery business activities must be conducted swiftly, fairly, and thoroughly; all consequences caused by such administrative violations must be remedied in accordance with the law.

2. The application of administrative penalties for violations related to lottery business activities shall be carried out by authorized persons as prescribed in this Decree.

3. Any administrative violation related to lottery business activities shall only be subject to administrative penalty once. Individuals and organizations committing multiple administrative violations shall be penalized for each individual violation.

4. The application of administrative penalties for violations related to lottery business activities must be based on the nature and degree of the violation, the background of the violator, and mitigating or aggravating circumstances stipulated in Articles 8 and 9 of the Administrative Violation Handling Ordinance No. 44/2002/PL-UBTVQH10 dated July 2, 2002 (hereinafter referred to as the Administrative Violation Handling Ordinance 2002) to determine appropriate forms and measures of punishment.

Time Limit for Administrative Penalties

1. The statute of limitations for administrative penalties for violations related to lottery business activities is two years, calculated from the date the administrative violation was committed. If the deadline has passed, no penalty will be imposed, but remedial measures must still be enforced as provided for in Clause 3, Article 5 of this Decree.

2. An individual who has been indicted, prosecuted, or had a decision made to bring them to trial under criminal proceedings, but subsequently has a decision to terminate the investigation or terminate the case due to administrative violations related to lottery business activities, shall be subject to administrative penalties according to this Decree; the statute of limitations for administrative penalties is three months, calculated from the date the authority responsible for imposing penalties receives the decision to terminate the investigation or prosecution and the case file of the violation.

3. Within the time limit stipulated in Clauses 1 and 2 of this Article, if an individual or organization commits a new administrative violation or deliberately evades or obstructs the imposition of penalties, the statute of limitations stipulated in Clauses 1 and 2 of this Article shall not apply; the statute of limitations for administrative penalties shall be recalculated from the date of the new administrative violation or the date when the act of evasion or obstruction ends.

4. If the authority responsible for imposing penalties exceeds the statute of limitations for administrative penalties, they shall be handled according to Article 121 of the Administrative Violation Handling Ordinance 2002.

Article 4. Period considered as not having been administratively punished

An individual or organization that has been administratively punished, if within one year from the date of completing the execution of the administrative punishment decision or from the date when the administrative punishment decision ceases to be effective without committing another violation, shall be deemed as not having been administratively punished.

Article 5. Forms of administrative punishment and measures to remedy consequences

1. For each act of administrative violation related to lottery business activities, the violator must bear one of the following main forms of administrative punishment:

a) Warning;

b) Fine.

The maximum fine for acts of administrative violation related to lottery business activities is 100,000,000 VND.

2. Depending on the nature and degree of the violation, the violator may also be subject to one or more of the following supplementary forms of administrative punishment:

a) Seizure of objects and means used to commit administrative violations;

b) Revocation of the certificate of eligibility for lottery business operations for a limited or unlimited period.

3. In addition to the forms of administrative punishment prescribed in Clause 1 and Clause 2 of this Article, the violator may also be subject to one or more of the following measures to remedy consequences:

a) Compel to conduct lottery business activities in accordance with the designated area;

b) Compel to cancel or correct the results of winning prizes that are incorrect or inconsistent with the records confirmed by the Lottery Supervisory Board;

c) Compel to supplement or correct incomplete or inaccurate reported data;

d) Compel to recover funds improperly paid out as prizes;

đ) Other measures to remedy consequences as specified in Chapter II of this Decree.

Chapter II

VIOLATIONS AND FORMS OF PUNISHMENT

 AND AMOUNTS OF PUNISHMENT

Article 6. Violations concerning the application for certificates of eligibility for lottery business operations

1. A fine of between 2,000,000 VND and 5,000,000 VND shall be imposed on a lottery business enterprise that arbitrarily alters or erases materials in the application file for a certificate of eligibility for lottery business operations.

2. A fine of between 5,000,000 VND and 10,000,000 VND shall be imposed on a lottery business enterprise that falsifies or forges materials in the application file for a certificate of eligibility for lottery business operations.

3. Additional forms of punishment:

Seize altered, erased, falsified, or forged materials for the administrative violation stipulated in this Article.

4. Measures to address consequences:

Compel to supplement materials in the application file in accordance with the provisions of the law for the administrative violation stipulated in this Article.

Article 7. Violations concerning the management and use of certificates of eligibility for lottery business operations

1. A fine of between 30,000,000 VND and 50,000,000 VND shall be imposed on individuals or organizations that erase or alter certificates of eligibility for lottery business operations.

2. A fine of between 50,000,000 VND and 70,000,000 VND shall be imposed on individuals or organizations that lend, lease, or transfer certificates of eligibility for lottery business operations.

3. A fine of between 70,000,000 VND and 100,000,000 VND shall be imposed on individuals or organizations conducting lottery business without a certificate of eligibility for lottery business operations issued by competent state authorities.

4. Additional forms of administrative punishment:

Suspend the right to use the certificate of eligibility for lottery business operations for a period of 90 to 180 days for the administrative violations stipulated in Clause 1 and Clause 2 of this Article.

5. Apply measures to remedy consequences:

Compel to recover all proceeds obtained from the implementation of the administrative violations stipulated in this Article.

Article 8. Violations concerning the printing of lottery tickets and the issuance of lottery tickets

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on enterprises operating lotteries that commit any of the following violations:

a) Printing lottery tickets without all required contents as prescribed;

b) Signing a printing contract with a printing facility that does not meet the conditions for printing lottery tickets.

2. A fine of VND 10,000,000 to VND 15,000,000 shall be imposed on enterprises operating lotteries that commit any of the following violations:

a) Issuing lottery tickets with incorrect denominations as prescribed;

b) Issuing more lottery tickets than the permitted limit;

c) Issuing lottery tickets outside the scheduled draw time;

d) Issuing electronic lottery tickets outside the prescribed time.

3. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed on enterprises operating lotteries that print fewer lottery tickets than the number and prize structure announced for issuance.

4. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed on individuals or organizations that alter, erase, forge lottery tickets in any form to participate in draws and claim prizes.

5. Additional forms of punishment:

a) Seize all lottery tickets used to violate administrative regulations stipulated in Clause 2 and Clause 4 of this Article;

b) Suspend the right to use the certificate of eligibility for lottery business operations from 15 to 30 days for violations of administrative regulations stipulated in Clause 2 and Clause 3 of this Article.

6. Measures to remedy consequences:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Compel compliance with the provisions of the law regarding the violations of administrative regulations stipulated in Clause 1, Clause 2, and Clause 3 of this Article.

Article 9. Violations concerning the distribution of lottery tickets

1. A warning shall be issued to individuals or organizations that commit any of the following violations:

a) Selling lottery tickets to individuals who do not meet the conditions to participate in lottery draws as prescribed;

b) Selling lottery tickets at prices other than those specified on the ticket.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on individuals or organizations that distribute lottery tickets through unauthorized methods.

3. Apply remedial measures:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Compel compliance with the provisions of the law regarding the violations of administrative regulations stipulated in this Article.

Article 10. Violations concerning the business territory for lotteries

1. A fine of VND 7,000,000 to VND 10,000,000 shall be imposed on individuals or organizations that conduct lottery business outside the designated territory.

2. Additional forms of punishment:

Seize all lottery tickets sold outside the designated territory.

3. Apply remedial measures:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Compel compliance with the territorial requirements of the law for the violations of administrative regulations stipulated in this Article.

Article 11. Violations concerning the types of products for business operations

1. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed on enterprises operating lotteries that engage in unauthorized types of business operations.

2. Additional forms of punishment:

a) Seize all unauthorized lottery tickets as prescribed;

b) Suspend the right to use the certificate of eligibility for business operations from 30 to 60 days for violations of administrative regulations stipulated in this Article.

3. Apply remedial measures:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Compel compliance with the authorized types of business operations as prescribed by the law for the violations of administrative regulations stipulated in this Article.

Article 12. Violations concerning the payout ratio and prize structure of lottery types

1. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on enterprises operating lotteries that commit any of the following violations:

a) Establishing a payout ratio for each issuance period exceeding the maximum prescribed ratio for each type of lottery;

b) Establishing a prize structure for each type of lottery that does not comply with the prescribed regulations.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on enterprises operating lotteries that fail to establish participation rules and announce them to customers.

3. Measures to remedy consequences:

a) Compel the recovery of all payouts exceeding the prescribed ratio for the violations of administrative regulations stipulated in Clause 1 of this Article;

b) Compel compliance with the provisions of the law regarding the violations of administrative regulations stipulated in this Article.

Article 13. Acts violating provisions on participation in lottery draws

1. A warning shall be imposed on individuals who do not meet the conditions for participating in lottery draws but intentionally purchase lottery tickets to participate in the draw.

2. A fine of from VND 15,000,000 to VND 20,000,000 shall be imposed on individuals or organizations using state capital and assets to participate in purchasing lottery tickets.

3. Apply remedial measures:

a) Order the recovery of all proceeds obtained from the implementation of administrative violations stipulated in this Article;

b) Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 14. Acts violating provisions on the recovery, storage, and destruction of unsold lottery tickets

1. A warning shall be imposed on lottery businesses that commit any of the following violations:

a) Failure to establish and promulgate detailed regulations on procedures for recovering unsold lottery tickets;

b) Delegating the recovery of unsold lottery tickets to another lottery business without a delegation document.

2. A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed on lottery businesses that commit any of the following violations:

a) Organizing the destruction of unsold lottery tickets, stubs, or stored parts of lottery tickets that have been recovered but have not been stored for the required period;

b) Not establishing a Destruction Committee or, if established, it does not have the required number of members;

c) Not preparing a record after destroying unsold lottery tickets.

3. Apply remedial measures:

Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 15. Acts violating provisions on organizing lottery draws

1. A fine of from VND 10,000,000 to VND 15,000,000 shall be imposed on lottery businesses that commit any of the following violations:

a) Organizing lottery draws not in accordance with the scheduled draw times;

b) Organizing lottery draws not at the designated location;

c) Failure to establish and publicly announce the rules for drawing lottery numbers.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on lottery businesses that commit any of the following violations:

a) Selecting a person to draw lottery numbers who does not meet the required conditions under the law;

b) Organizing the drawing of lottery numbers not in accordance with the prescribed procedure.

3. A fine of from VND 40,000,000 to VND 50,000,000 shall be imposed on individuals or organizations intentionally distorting the winning results.

4. Measures to address consequences:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Order the cancellation or correction of distorted winning results for the administrative violation stipulated in Clause 3 of this Article;

c) Order compliance with the provisions of the law regarding the administrative violations stipulated in Clauses 1 and 2 of this Article.

Article 16. Acts violating provisions on lottery number-drawing equipment

1. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on lottery businesses that commit any of the following violations:

a) Failure to fully equip with the required lottery number-drawing equipment;

b) Using a ball cage for drawing numbers that does not meet management requirements;

c) Balls used for drawing numbers that do not meet management requirements;

d) Using electronic scales or size-checking devices for balls used in drawing numbers that do not meet management requirements;

đ) Camera systems and screens placed in positions that do not ensure full monitoring of the entire number-drawing process as prescribed and do not store images recorded through cameras for the minimum required period.

2. Measures to remedy consequences:

Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 17. Acts violating regulations on the use of lottery results and prize-winning information

1. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed on individuals and organizations using the lottery results of lottery businesses to organize prize-drawing programs.

2. A fine of VND 40,000,000 to VND 50,000,000 shall be imposed on lottery businesses intentionally providing inaccurate prize-winning information that does not match the confirmation record of the Lottery Supervision Board.

3. Additional forms of punishment:

The right to use the certificate of eligibility for lottery business operations shall be suspended for ninety to one hundred eighty days for administrative violations stipulated in Clause 2 of this Article.

4. Measures to address consequences:

a) Compel lottery businesses to cancel or correct inaccurate results that do not match the confirmation record of the Lottery Supervision Board for administrative violations stipulated in Clause 2 of this Article;

b) Compel the recovery of all proceeds obtained from the implementation of administrative violations stipulated in this Article.

Article 18. Acts violating regulations on prize payments

1. A fine of VND 3,000,000 to VND 5,000,000 shall be imposed on lottery businesses paying prizes for lottery tickets that do not meet the prescribed conditions for prize payment.

2. A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed on lottery businesses that commit any of the following violations:

a) Intentionally prolonging the prize payment time for winning customers;

b) Organizing the destruction of winning tickets that have been paid out but have not been stored for the required period.

3. A fine of VND 10,000,000 to VND 15,000,000 shall be imposed on lottery businesses violating the confidentiality of prize payment information of winning customers.

4. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed on lottery businesses authorizing prize payments to agents beyond the permitted value of the prize.

5. Measures to remedy consequences:

a) Compel the recovery of all amounts paid out or authorized for payment contrary to regulations for administrative violations stipulated in Clause 1 and Clause 4 of this Article;

b) Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 19. Acts violating regulations on business conditions for lottery systems

1. A fine of VND 30,000,000 to VND 50,000,000 shall be imposed on lottery businesses operating lottery systems but failing to meet the prescribed conditions regarding mainframe equipment and lottery ticket vending machines.

2. A fine of VND 50,000,000 to VND 70,000,000 shall be imposed on lottery businesses operating lottery systems but failing to meet the prescribed conditions regarding software.

3. Additional forms of punishment:

The right to use the certificate of eligibility for lottery business operations shall be suspended for ninety to one hundred eighty days for administrative violations stipulated in this Article.

4. Measures to address consequences:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 20. Acts violating regulations on lottery agents

1. A fine of VND 2,000,000 to VND 5,000,000 shall be imposed on lottery agents who arbitrarily modify or erase documents in their application for agent status.

2. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on lottery agents who fraudulently or falsely present documents in their application for agent status.

3. A fine of VND 10,000,000 to VND 20,000,000 shall be imposed on lottery businesses committing any of the following violations:

a) Signing agency contracts with individuals or organizations that do not meet the prescribed conditions for becoming lottery agents;

b) Failing to ensure the minimum ratio of the guarantee amount for the settlement obligations of lottery agents as prescribed;

c) Allowing lottery agents to carry overdue debts or exceed the payment period for lottery ticket sales revenue as prescribed.

4. Additional forms of administrative punishment:

Seize modified, erased, fraudulent, or false documents for administrative violations stipulated in this Article.

5. Measures to remedy consequences:

Compel compliance with the provisions of the law for administrative violations stipulated in Clause 3 of this Article.

Article 21. Acts violating administrative regulations concerning commission for lottery agents, setting up prize reserve funds, financial funds, and using such funds

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on enterprises operating lotteries that pay commissions to lottery agents at a rate higher than the prescribed ratio.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed on enterprises operating lotteries that intentionally set up and use prize risk reserve funds and financial funds not in accordance with the prescribed regulations.

3. Measures to remedy consequences:

Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 22. Acts violating administrative regulations concerning reporting systems in lottery business activities

1. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on enterprises operating lotteries that commit any of the following violations:

a) Not submitting or submitting incomplete reports to competent state agencies;

b) Submitting reports to competent state agencies beyond the prescribed deadline;

c) Information and data in reports being incomplete or inaccurate.

2. Measures to address consequences:

a) Compel enterprises operating lotteries to supplement and correct report data for acts of administrative violation stipulated in point c, Clause 1 of this Article.

b) Order compliance with the provisions of the law regarding the administrative violations stipulated in this Article.

Article 23. Acts violating promotional regulations in lottery business activities

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on individuals and organizations conducting lottery promotional activities.

2. Additional forms of punishment:

a) Confiscate all means and objects used for promotion;

b) Suspend the right to use the certificate of eligibility for lottery business operations of enterprises operating lotteries for a period of thirty to sixty days for acts of administrative violation stipulated in this Article.

3. Apply remedial measures:

a) Compel the recovery of all proceeds obtained from the implementation of the violation of administrative regulations stipulated in this Article;

b) Compel compliance with the provisions of the law regarding the violations of administrative regulations stipulated in this Article.

Chapter III

AUTHORITY, PROCEDURES FOR IMPOSING FINES, COMPLAINTS,

REPORTING AND HANDLING VIOLATIONS

Article 24. Authority to impose fines for administrative violations in lottery business activities

1. Financial inspectors at various levels while performing their duties have the authority:

a) To issue warnings;

b) Impose a fine up to 500,000 VND;

c) To confiscate objects and means used for administrative violations valued up to VND 2,000,000;

d) To apply measures to remedy consequences as prescribed in Clause 3, Article 5 of this Decree.

2. The Head of the Department of Finance's Inspectorate has the authority:

a) To issue warnings;

b) Impose fines up to thirty million dong;

c) Confiscate the objects and means used to commit administrative violations;

d) To apply measures to remedy consequences as prescribed in Clause 3, Article 5 of this Decree.

3. The Head of the Ministry of Finance's Inspectorate has the authority:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To suspend the right to use certificates of eligibility for lottery business operations within the scope of authority as prescribed by law;

d) Confiscate objects and means used to commit administrative violations;

d) To apply measures to remedy consequences as prescribed in Clause 3, Article 5 of this Decree.

4. Chairpersons of People's Committees at various levels within the scope of authority prescribed in the Administrative Violation Handling Ordinance have the authority to impose fines for administrative violations in lottery business activities as prescribed in this Decree.

Article 25. Authority to impose fines for administrative violations of other agencies

In addition to those authorized to impose fines as prescribed in Article 24 of this Decree, those authorized to impose fines for administrative violations of other agencies according to the Administrative Violation Handling Ordinance 2002, the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance 2008, within the scope of their functions and tasks assigned, if they discover acts of administrative violations prescribed in this Decree within their management areas, shall have the authority to impose fines.

Article 26. Procedures for imposing fines, enforcing decisions on fines, and coercive enforcement of administrative penalty decisions in lottery business activities

1. Procedures for imposing administrative penalties in lottery business activities shall be carried out in accordance with the Administrative Violation Handling Ordinance 2002 and Article 1 of the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance 2008.

2. Individuals and organizations subject to administrative penalties for lottery business activities as prescribed in this Decree must strictly comply with the decision on penalties issued by the authorized person within ten days from the date of receipt of the decision on penalties, except where otherwise provided by law.

3. Individuals and organizations subject to penalties who do not voluntarily comply with the decision on penalties shall be subject to coercive enforcement of the decision on penalties in accordance with Article 66 and Article 66a of the Administrative Violation Handling Ordinance 2002; the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance 2008, and provisions on coercive enforcement of decisions on administrative penalties under the law.

4. The procedures for coercive enforcement of decisions on administrative penalties in lottery business activities shall be carried out in accordance with Article 66 and Article 67 of the Administrative Violation Handling Ordinance 2002; the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance 2008, and provisions on coercive enforcement of decisions on administrative penalties under the law.

Article 27. Sample minutes and sample decisions for administrative violation handling

The appendices containing the sample minutes and decisions to be used for administrative penalties related to lottery business activities are hereby promulgated along with this Decree.

Article 28. Receipts for fine collection, management and use of fines paid for administrative violations in the lottery business sector

The issuance of receipts for fine collection, management and use of fines paid for administrative violations related to lottery business activities shall be carried out in accordance with the provisions of Government Decree No. 124/2005/NĐ-CP dated October 6, 2005 on receipts for fine collection and management, use of fines paid for administrative violations.

Article 29. Complaints and reports

Complaints and reports, as well as the resolution of complaints and reports regarding administrative penalty decisions concerning lottery business activities, shall be implemented in accordance with the laws on complaints and reports.

Article 30. Handling Violations

1. A person subject to administrative handling for violations related to lottery business activities who engages in acts of resisting law enforcement officers; delaying, evading compliance with the decision of the competent authority imposing the penalty shall, depending on the nature and severity of the violation, be subject to administrative handling or criminal prosecution, and if damage is caused, must compensate according to the law.

2. A competent authority handling administrative violations related to lottery business activities who harasses, tolerates, shields, fails to handle, handles untimely, improperly, exceeds the prescribed authority, or makes errors leading to the expiration of the time limit for administrative violation handling shall, depending on the nature and severity of the violation, be subject to disciplinary action or criminal prosecution, and if damage is caused, must compensate according to the law.

Chapter IV

IMPLEMENTING PROVISIONS

Article 31. Implementation Provisions

1. This Decree takes effect from December 15, 2010.

2. The Minister of Finance is responsible for guiding, inspecting, and supervising the implementation of this Decree.

3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the Central Government are responsible for implementing this Decree./.