DECISION OF THE MINISTER OF FINANCE

Issuing the regulations on the organization and issuance of instant lottery tickets

_______________________

 THE MINISTER OF FINANCE

- Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

- Pursuant to Decree No. 77/CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

- At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

DECISION:

Article 1. These regulations on the organization and issuance of instant lottery tickets are hereby issued for uniform application throughout the country.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 643 TC/QĐ/TCNH dated September 8, 1997 of the Ministry of Finance regarding the issuance of regulations on instant lottery tickets.

The Director of the Department of Financial Affairs of Banks and Financial Institutions, the Head of the Ministry's Office, the Heads of relevant units under the Ministry, the Directors of Provincial Departments of Finance and Prices, and the Directors of Lottery Companies in provinces and cities are responsible for implementing this Decision.

REGULATIONS

ORGANIZATION AND ISSUANCE OF INSTANT LOTTERY TICKETS

(Issued together with Decision No. 141/2003/QĐ/BTC dated September 9, 2003 of the Ministry of Finance)

____________________________

Instant lottery tickets (referred to as instant tickets) are a type of lottery where the buyer can immediately know the result of winning or not winning and the value of the prize by opening the ticket (or peeling, tearing, pulling off the covering layer) and comparing the number printed on the ticket with the lottery results announced by the lottery company.

To ensure compliance with the unified management regulations for issuing lotteries, the Ministry of Finance issues these regulations on the organization and issuance of instant lottery tickets to provide lottery companies in provinces and cities with a basis for implementation.

PART I

GENERAL PROVISIONS

Article 1. Purpose of issuing instant lottery tickets:

Issuing lotteries in general, and instant lottery tickets in particular, is a financial measure of the State to encourage savings income among residents to be contributed to the State budget for social welfare programs through a healthy entertainment form with prizes.

Article 2. Requirements in organizing the issuance of instant lottery tickets:

- The issuance of instant lottery tickets must comply with the unified management regulations for issuing lotteries, current laws, and the provisions of these regulations. Ensuring objectivity, honesty, safety, and absolute secrecy about winning tickets.

- The issuance of instant lottery tickets must be accompanied by effective propaganda and advertising activities, explaining to the public the purpose and significance of organizing lottery issuance, combining with other types of lotteries to combat illegal gambling in the area.

PART II

 SPECIFIC PROVISIONS

Article 3.Instant lottery tickets must meet the following requirements:

- Instant lottery tickets must have a suitable format and size, reflecting all necessary elements to serve participants buying tickets and meeting management requirements (such as the name of the lottery company, price, serial number, number of entries, prize payout rules...).

- Images printed on the ticket must be appropriate to local customs and traditions and suitable for management requirements, uniformly printing the name "instant lottery ticket" on the ticket.

- Printing of tickets must be carried out at reputable printing facilities that meet conditions for ensuring security and preventing counterfeiting. The number of tickets printed for each issuance period must be sufficient to match the prize structure announced.

Additionally, to ensure special management requirements for instant lottery tickets, the lottery company must report to the Ministry of Finance information about the printing location, ticket design, measures to ensure ticket security, and sample tickets.

Article 4. Ticket Price:

The price of instant lottery tickets is formed based on ensuring balance and harmony with the prices of other types of lottery tickets issued simultaneously; it can vary according to different periods, with a maximum of 5,000 VND per ticket.

Article 5. Prize Structure:

For each different ticket price, there is a corresponding prize structure. The prize structure must comply with general regulations but should not exceed 55% of sales revenue, with the highest prize not exceeding 10% of sales revenue.

Article 6. Propaganda and advertising:

When issuing instant lottery tickets, the lottery company must provide full information to the public about the issuance rules; serial numbers of tickets and corresponding prize structures; validity period of tickets; other related information such as the purpose of issuance, contributions of lottery activities to social welfare projects in the area.

Article 7. Organization of issuance:

- The market for instant lottery tickets is within the administrative boundaries of the locality or region approved by the Inter-Provincial Council approved by the Ministry of Finance.

- When issuing instant lottery tickets, the lottery company must carefully calculate the number of tickets issued based on reasonable market demand.

- The validity period of tickets for each issuance period of instant lottery tickets needs to be determined appropriately according to market characteristics and convenient for ticket sales and prize payouts management.

Article 8. Responsibilities of the lottery company towards customers:

The lottery company must inform customers participating in instant lottery tickets of the following contents:

- Regulations in the issuance rules of instant lottery tickets.

- Authorization for agents to pay winnings to winners who can claim their prizes immediately at the selling agent according to the company's regulations.

Article 9. 2. Authorizing agents to pay winners who can claim their prizes immediately at the point of sale according to the lottery company's regulations.

- Tickets that are not intact, torn, patched, or erased.

- Winning tickets that exceed the time limit specified on the ticket or in the issuance announcement of the lottery company.

Article 10.Shuffling of instant lottery tickets:

- The shuffling of instant lottery tickets before the draw must be organized openly, objectively, and honestly under the supervision of the Lottery Supervisory Board. The number of tickets shuffled must match the number of tickets to be announced for issuance and be consistent with the prize structure. If multiple series with the same prize structure are issued, each series must be shuffled separately before the draw.

- The results of shuffling must be recorded in a protocol specifying the participants, time, place, number of tickets shuffled, and confirmed by the Lottery Supervisory Board.

Article 11. Lottery draw opening:

 Lottery companies must organize public draws under the supervision of the lottery supervisory board with all required components in accordance with the regulations of the Ministry of Finance on guiding and organizing the activities of the lottery supervisory board. The results of the draw must be recorded in a protocol signed by members of the lottery supervisory board to serve as a legal basis for announcing the lottery results and awarding prizes.

Article 12. Announcement of lottery results:

 The announcement of lottery results must be issued simultaneously with each series of scratch-off lottery tickets put into circulation, bearing the stamp and signature of the authorized representative of the issuing lottery company.

Content of the announcement of lottery results must include:

+ Type of ticket price, ticket code, number of tickets issued.

+ Time and place of draw.

+ Winning results and prize values for each category.

+ Validity period of the tickets.

+ Claiming period and location for claiming prizes.

+ Name of the issuing lottery company.

And other necessary information to serve the needs of ticket buyers.

Article 13. Immediate knowledge of results for scratch-off lottery agents:

Lottery companies may select among existing lottery ticket selling agents and may also organize additional agents such as retail stores, post offices, hotels, or street vendors to sell scratch-off lottery tickets but must ensure the following principles:

- Scratch-off lottery ticket selling agents must be carefully selected, fully comply with the rules for issuing scratch-off lottery tickets, and strictly adhere to relevant regulations of the lottery company.

- Scratch-off lottery ticket selling agents receiving tickets for sale must pay in full immediately in cash. In cases where agents have difficulties, they may be considered for collateral using valuable documents (bonds, promissory notes, bills of exchange...) equivalent to the value of the received tickets (excluding agent commission).

- Scratch-off lottery ticket selling agents are only permitted to sell tickets that are still valid and must thoroughly understand the issuance rules to guide and explain to ticket buyers.

- Scratch-off lottery ticket selling agents must sell at the correct price and award prizes to winners according to the prize values listed in the issuance announcement and in accordance with the categories specified by the lottery company for which agents are responsible for paying out. Awarded tickets must be stored intact as a basis for settlement with the lottery company.

- Any errors or mistakes in the process of selling tickets or awarding prizes not in accordance with the lottery company's regulations, the agent must bear material responsibility towards

ticket buyers and before the law.

Additionally, scratch-off lottery ticket selling agents must also fully implement the procedures stipulated in the agency regulations, sign an agency contract for selling scratch-off lottery tickets with the lottery company, and clearly define the material responsibilities between both parties.

Article 14. Agent commission:

Agent commission is determined by the lottery company, but the maximum rate shall not exceed 13% of sales revenue (for provinces in the delta region and cities), and not more than 15% (for mountainous provinces and the Central Highlands).

Article 15. Prize payout and management of winning tickets:

- Winning tickets can be claimed from the lottery company or at the selling agent upon authorization for proxy payment by the lottery company.

- Payment of prizes for winning tickets that remain intact within their original frame, without tears, patches, erasures, and within the claiming period as stipulated in the issuance announcement of the lottery company.

- Before making payments, the prize payout staff must check the winning ticket presented by the ticket holder to ensure it meets all the criteria for a legitimate winning ticket as prescribed, and winning tickets that have been paid out must be punched with a hole.

- Prior to storing the paid-out winning tickets, the lottery company must organize inspections, record protocols confirming that these tickets meet the requirements, and prepare detailed lists of the number of tickets and stubs or prize-winning portions, and the amount of prize money paid out.

- The storage of winning tickets must be carried out in accordance with current regulations of the Ministry of Finance.

Article 16. Recovery of unsold tickets (tickets that did not sell):

 When the validity period of scratch-off lottery tickets expires, the lottery company must proceed to recover unsold tickets (tickets remaining unsold), organize inspections, counts, and destruction in accordance with current regulations. To invalidate a ticket, the corner must be cut off.

Article 17. Regarding the guarantee of payment obligations for lottery ticket sales between agents and the Lottery Company:

- The lottery agent who opens and announces results immediately may only receive tickets upon completion of legal procedures to ensure the obligation to pay 100% of the amount due before receiving the tickets from the Lottery Company.

- The use of forms of payment guarantee by lottery agents with the Lottery Company shall be carried out in accordance with current regulations.

Article 18. Payment for ticket sales:

Agents must remit the full proceeds from lottery ticket sales to the Lottery Company within the time limit stipulated in the contract and in accordance with current relevant state regulations.

Article 19. Obligation to pay state budget:

Lottery Companies must comply with all current legal provisions regarding taxes and other payments.

Article 20. Accounting work:

- All activities related to the issuance of instant lottery tickets must be recorded in accounting ledgers in accordance with legal requirements and the current accounting system of the State.

- Reporting system: In addition to general reporting requirements, monthly and quarterly, the Lottery Company must report on the situation and results of instant lottery ticket issuance to the Ministry of Finance for monitoring and management.

CHAPTER III

IMPLEMENTATION

Article 21. Conditions for issuing instant lottery tickets:

Lottery Companies wishing to issue instant lottery tickets must develop a proposal to be reported to the Department of Finance and Prices for approval by the People's Committee of the province or city to allow issuance.

The project must include the following main contents:

- Annual issuance plan divided by month and quarter.

- Location for printing tickets, design of ticket sheets, and measures to ensure the security of ticket sheets.

- Organization of the network of agents and sales areas.

- Organization of promotional and advertising activities.

- Economic and social effectiveness.