Decision No. 141/2003/QD-BTC of the Minister of Finance Issuing the regulations on organizing the issuance of instant lottery tickets with immediate result revelation

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
Number: 141/2003/QĐ-BTC	Hanoi, September 9, 2003

 

Pursuant to …;

OF THE MINISTER OF FINANCE NUMBER 141/2003/QĐ-BTC DATED SEPTEMBER 9, 2003 ISSUING REGULATIONS ON THE ORGANIZATION AND ISSUE OF INSTANT LOTTERY TICKETS

THE MINISTER OF FINANCE

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

Pursuant to Decree 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.

This Decision promulgates the Regulations on the organization and issue of instant lottery tickets to be uniformly applied 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 on the issuance of regulations on instant lottery tickets.

The Heads of the Department of Financial Affairs of Banks and Financial Organizations, the Director of the Office of the Ministry, the Heads of units directly 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.

 

DEPUTY MINISTER OF FINANCE DEPUTY MINISTER Le Thi Bang Tam

 

REGULATIONS

REGULATIONS ON THE ORGANIZATION AND ISSUE OF INSTANT LOTTERY TICKETS
(PROMULGATED BY DECISION NO. 141/2003/QĐ-BTC DATED SEPTEMBER 9, 2003 OF THE MINISTRY OF FINANCE)

Instant lottery tickets (referred to as instant lotteries) are a type of lottery where the buyer can immediately determine whether they have won a prize by comparing the numbers printed on the ticket with the results announced by the lottery company upon opening the ticket (or peeling, tearing, pulling off the covering layer).

To ensure compliance with the unified management regulations for issuing lotteries, the Ministry of Finance issues these regulations on the organization and issue of instant lottery tickets so that provincial lottery companies have a basis for implementation.

Chapter 1:

GENERAL PROVISIONS

Article 1. Purpose of issuing instant lottery tickets:

Issuing lotteries generally, and instant lottery tickets specifically, is a financial measure of the State to encourage savings among the population to be directed into the State budget for use in social welfare programs through a healthy form of entertainment with prizes.

Article 2. Requirements in organizing and issuing instant lottery tickets:

- The issuance of instant lottery tickets must comply with all national regulations on unified management of lottery issuance, current laws, and the provisions of these regulations. Ensuring objectivity, honesty, safety, and absolute confidentiality regarding winning tickets.

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

Chapter 2:

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 the tickets and meeting management requirements (such as the name of the lottery company, price, serial number, prize numbers, rules for prize payment, etc.).

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

- Printing of tickets must be carried out at reputable printing facilities with adequate security measures to prevent counterfeiting. Each issue of tickets must be sufficient in quantity to match the prize structure announced.

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

Article 4. Ticket Price:

The ticket price for instant lottery tickets shall be established on the basis of ensuring balance and harmony with the prices of other types of lottery tickets issued simultaneously; it may vary across multiple levels, corresponding to different issues, with a maximum not exceeding 5,000 VND per ticket.

Article 5. Prize Structure:

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

Article 6. Promotion and Advertising:

When issuing instant lottery tickets, the Lottery Company must provide full information to the public about the issuance rules; series of tickets and corresponding prize structures; the validity period of the tickets; other relevant information such as the issuance objectives, contributions of lottery activities to social welfare projects in the region.

Article 7. Issuance Organization:

- The market for instant lottery tickets that reveal results immediately is within the administrative boundaries of the local area or region as stipulated 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 the reasonable demand of the market.

- The circulation period of each issue of instant lottery tickets should be determined appropriately according to the characteristics of the market and facilitate the management of ticket sales and prize payouts.

Article 8. Responsibilities of the Lottery Company towards Customers:

The Lottery Company must inform customers participating in instant lottery tickets revealing results immediately of the following contents:

- Regulations in the issuance rules of instant lottery tickets revealing results immediately.

- Authorization for agents to pay out prizes at the point of sale according to the company's regulations.

Article 9. Cases Where Prizes Cannot Be Claimed:

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

- Tickets that have won prizes but are claimed beyond 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 must be organized before the draw under the principle of transparency, objectivity, and honesty under the supervision of the Lottery Supervisory Council. 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, location, number of tickets shuffled, and confirmed by the Lottery Supervisory Council.

Article 11. Conducting the Draw:

Lottery Companies must organize the draw publicly under the supervision of the Lottery Supervisory Council with all required members in accordance with the Ministry of Finance’s guidelines on the organization and operation of the Lottery Supervisory Council. The results of the draw must be documented in a protocol signed by the members of the Lottery Supervisory Council as the legal basis for announcing the lottery results and prize payouts.

Article 12. Announcing Lottery Results:

The announcement of lottery results must be issued simultaneously with each series of instant lottery tickets put into circulation, bearing the stamp and signature of the authorized representative of the issuing Lottery Company.

The content of the announcement of lottery results must include:

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

+ Time and location of the draw.

+ Winning results and value of each prize.

+ Validity period of the tickets.

+ Claiming period and location.

+ Name of the issuing Lottery Company.

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

Article 13. Instant lottery ticket agents announcing results immediately:

The XSKT Company may select instant lottery ticket selling agents among existing ticket-selling agents and may organize additional agents such as retail stores, post offices, hotels, or street vendors to sell instant lottery tickets, but must ensure the following principles:

- Instant lottery ticket selling agents must be carefully selected, fully comply with the rules for issuing instant lottery tickets, and strictly adhere to relevant regulations of the XSKT Company.

- Instant 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 sales agent commissions).

- Instant lottery ticket selling agents are only permitted to sell tickets that are still valid for circulation and must be well-versed in the issuance rules to guide and explain to buyers.

- Instant lottery ticket selling agents must sell at the correct price and pay out winnings to winners according to the winning value stated on the issuance notice and in accordance with the prizes specified by the XSKT Company that the agent is authorized to pay. Paid-out winning tickets must be stored intact as a basis for settlement with the XSKT Company.

- Any errors or mistakes in the process of selling tickets or paying out winnings not in accordance with the XSKT Company's regulations, the agent must bear material responsibility towards the buyer and under the law.

Additionally, instant lottery ticket selling agents must also fully implement all procedures stipulated in the agency regulations, must sign an instant lottery ticket selling agency contract with the XSKT Company, and clearly define material responsibilities between both parties.

Article 14. Sales Agent Commission:

The sales agent commission is determined by the XSKT 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 Payment and Management of Paid-Out Tickets:

- Winning tickets can be claimed at the XSKT Company or at the selling agent upon authorization from the XSKT Company to pay out on behalf of the company.

- Prize payments will be made for tickets that are still intact, not torn, patched, erased, and within the claim period as specified in the issuance notice of the XSKT Company.

- Before making prize payments, the prize payment staff must check the winning ticket presented by the ticket holder to ensure it meets all valid criteria as stipulated, and paid-out winning tickets must be punched with a hole.

- Prior to storing paid-out tickets, the XSKT Company must organize inspections, prepare records confirming compliance with regulations, and create detailed lists of the number of tickets and stubs or winning portions, and the amount of prize money paid.

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 (Stale Tickets):

When the circulation period of instant lottery tickets expires, the XSKT Company must recover unsold tickets (stale tickets), conduct inspections, counts, and destroy them in accordance with current regulations. To invalidate a ticket, a corner must be cut off.

Article 17. Ensuring Payment Obligations Between Agents and the XSKT Company:

- Instant lottery ticket agents announcing results immediately can only receive tickets after completing legal procedures to guarantee 100% payment of the amount due before receiving tickets from the XSKT Company.

- The use of forms of guaranteeing payment obligations of instant lottery ticket agents with the XSKT Company shall be implemented in accordance with current regulations.

Article 18. Payment for lottery ticket sales:

The agent must remit the full amount of lottery ticket sales to the lottery company in accordance with the deadlines specified in the contract and the 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 lottery tickets must be recorded in accounting books in accordance with current laws and state accounting regulations.

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

Chapter 3:

IMPLEMENTATION

Article 21. Conditions for issuing lottery tickets:

Lottery companies wishing to issue lottery tickets must develop a proposal to report to the Department of Finance and Prices for approval by the Provincial People's Committee.

The project must include the following main contents:

- Annual issuance plan divided by month and quarter.

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

- Organization of the agency network and sales territory.

- Organization of promotional and advertising activities.

- Economic and social benefits.

- Management organization measures.

The decision allowing the issuance of lottery tickets by the Provincial People's Committee must be sent to the Ministry of Finance for monitoring and management.

Article 22. Issuance procedures for lottery tickets:

- Market research must be conducted effectively to develop appropriate issuance plans based on consumption capacity; effective promotional and advertising activities must be organized to explain to the public the purpose, significance, fairness, and objectivity of lottery ticket issuance.

- Before issuance, all material conditions necessary for issuance must be in place; an effective agency network must be organized, and issuance rules and playing regulations must be publicly announced.

- A pilot issuance must be organized to gather experience; expansion of the sales area must be consistent with management capabilities.

- Monthly and quarterly summaries must be conducted, regular inspections carried out, and timely corrections made to prevent negative developments.

Chapter 4:

HANDLING VIOLATIONS

Article 23. Handling of violations:

Violations of this regulation will be subject to administrative penalties (including suspension of lottery ticket issuance) or criminal responsibility as determined by competent authorities, depending on the severity of the violation.

Article 24. Handling intentional fraud, tampering, altering, or counterfeiting of tickets to claim prizes:

Intentional fraudulent alteration or printing of fake tickets to claim prizes shall result in material compensation or criminal liability, depending on the severity of the violation.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 25. Effectiveness and enforcement responsibility:

This regulation shall take effect fifteen days from the date of publication in the Official Gazette.

Lottery companies are responsible for complying with this regulation and are subject to inspection by the Department of Finance and Prices, Provincial People's Committees, the Ministry of Finance, and other competent authorities.

Any difficulties encountered during implementation should be reported to the Provincial People's Committee and the Ministry of Finance for prompt resolution.