Decision No. 142/2003/QD-BTC of the Minister of Finance on the issuance rules for Lotto lottery tickets

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
Number: 142/2003/QĐ-BTC	Hanoi, September 9, 2003

 

Pursuant to …;

DECISION NO. 142/2003/QĐ-BTC OF THE MINISTER OF FINANCE ON SEPTEMBER 9, 2003 ISSUING REGULATIONS ON THE ORGANIZATION AND ISSUE OF LOTTO LOTTERIES

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

At the request of the Director of the Department of Finance of Banks and Financial Institutions,

DECISION:

Article 1.

Attached to this Decision are the Regulations on the organization and issuance of Lotto lotteries 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. 37/2000/QĐ-BTC dated March 13, 2000 of the Ministry of Finance on issuing regulations on the organization and issuance of Lotto lotteries.

.

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

 

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT DEPUTY MINISTER Le Thi Bang Tam

 

REGULATIONS

REGULATIONS ON THE ORGANIZATION AND ISSUE OF LOTTO LOTTERIES
(Issued pursuant to Decision No. 142/2003/QĐ-BTC dated September 9, 2003 of the Ministry of Finance)

Lotto lottery is a type of state construction lottery where the buyer has the right to choose their preferred numbers and there is a regular draw for prizes. To ensure compliance with national regulations on unified management of the issuance of state construction lotteries, the Ministry of Finance issues these regulations on the organization and issuance of Lotto lotteries so that provincial and city lottery companies have a basis for implementation.

Chapter 1:

GENERAL PROVISIONS

Article 1. Purpose of issuing Lotto lottery:

Issuing state construction lotteries generally, and Lotto lottery specifically, is a financial measure of the State to mobilize savings from the public into the State budget for use in programs serving society through a healthy entertainment form with rewards.

Article 2. Requirements in organizing the issuance of Lotto lottery:

- The issuance of Lotto lottery must ensure compliance with national regulations on unified management of the issuance of state construction lotteries, current laws, and the provisions of these regulations.

- Effective promotional work for Lotto lottery must be organized to explain to the people the purpose and significance, and appropriate measures must be taken to combat the abuse of playing illegal numbers games.

Chapter 2:

SPECIFIC PROVISIONS

Article 3. Lottery tickets for Lotto lottery must meet the following requirements:

- The ticket must have a stub or retention part.

- The ticket format should be simple and convenient, reflecting all necessary elements to serve those participating in purchasing tickets and meeting management requirements, and must have colors distinguishing the denominations of each type of ticket for two-digit and three-digit draws.... to facilitate selection by buyers and control of the ticket when purchasing, and must print the name of the issuing company (for multiple-draw tickets, the number of draws must be clearly marked on the ticket).

- On the back of the ticket, in addition to general regulations, it must clearly state "the company will not be responsible for prize payments for any errors or mistakes made when filling out the ticket that do not comply with the regulations."

Article 4. Price of Lotto lottery tickets:

The price of Lotto lottery tickets is established based on ensuring balance and harmony with other types of state construction lotteries issued at various prices from 500 dong to 10,000 dong per draw. In the case of tickets applicable for multiple draws, the total value recorded on each ticket must not exceed 50,000 dong.

Article 5. Structure of prizes, reserve establishment, and use for stabilizing prize payment costs for Lotto lottery:

- Establish an average prize structure for each category not exceeding 60% of sales revenue. At the end of the accounting period (December 31 each year), the lottery company must establish and use a reserve for prize payments to stabilize prize payment costs according to the following rules:

If the actual prize payout for the entire year is less than 60% of the actual sales revenue, the lottery company can establish a reserve for prize payments.

If the Lotto lottery reserve is not fully utilized, the lottery company may carry it over to the next year. The total amount of reserves established cannot exceed 5% of the total lottery sales revenue for the reporting year. The lottery company must account for prize payment expenses as business expenses equal to 60% of sales revenue.

If the reserve for prize payments has reached its maximum limit, the company must account for prize payment expenses based on actual amounts.

Principle of using the reserve for prize payments: When the actual prize payout for the entire year exceeds 60% of the actual sales revenue, the lottery company can use the reserve to reduce prize payment costs. If the reserve for prize payments is insufficient, the remaining actual prize payout will be accounted for as business expenses.

- When the lottery company ceases issuing Lotto lottery, the entire unused reserve for prize payments must be accounted for as a reduction in business expenses.

Article 6. Propaganda and Advertising:

- When issuing Lotto lottery tickets, the Lottery Sales Joint Stock Company must organize well the propaganda and explanation work to help the people understand clearly the purpose and significance and distinguish the nature of the state-issued Lotto lottery from illegal gambling activities such as lotteries and number bets.

- The propaganda and advertising activities shall be carried out in moderation, focusing on the necessary information about the issuance of Lotto lottery tickets to serve the buyers, such as: prize structure, participation rules, recording methods of agents, result comparison methods, reward levels, award collection locations, award collection time, and other information about winners, prize amounts, funds collected into the budget, and usage for social welfare purposes.

Article 7. Issuance Organization:

Lotto lottery tickets are issued concurrently with other types of lottery tickets.

The number of tickets issued in each round is determined by the Lottery Sales Joint Stock Company based on market demand and must be appropriate to the management capacity of each company.

The market for consuming Lotto lottery tickets is limited within the administrative area of the locality.

Article 8. Agents Selling Lotto Lottery Tickets:

The Lottery Sales Joint Stock Company organizes and strictly manages the network of agents selling Lotto lottery tickets. The agents selling Lotto lottery tickets must be carefully selected, ensuring the following requirements are met:

- Possess proficient specialized skills (propaganda, recording, ticket sales).

- Adhere strictly to the agent regulations and specific provisions of the Lottery Sales Joint Stock Company.

- The agent must advance money to purchase tickets or provide cash collateral, or pledge valuable certificates (bonds, promissory notes, government securities...) equivalent to the value of the received tickets (excluding sales commission).

- The agent must sign an agency contract for selling Lotto lottery tickets with the Lottery Sales Joint Stock Company, wherein the agency contract must clearly stipulate the rights, obligations, and material responsibilities between both parties.

Article 9. Number Drawing and Prize Announcement Organization:

- The Lottery Sales Joint Stock Companies may conduct separate number drawings for each type of Lotto lottery ticket or use the results of traditional lottery draws to announce the winning results for each type of two-digit, three-digit... Lotto lottery tickets and those that can have multiple result comparisons. Separate number drawings for each type of Lotto lottery ticket must comply with the Ministry of Finance's guidelines on organizing and operating the Lottery Supervisory Council. - The announcement of the Lotto lottery draw results must be clear and accurate, containing all necessary elements such as: date and location of the number drawing, winning prizes, winning numbers, corresponding prize amounts for each prize, and the name of the issuing company to serve the participants buying Lotto lottery tickets in checking their winning numbers and the Lottery Sales Joint Stock Company in awarding prizes.

Article 10. Organization of Ticket Stub Recovery or Retention Part and Winning Ticket Stub Withdrawal:... - The recovery of ticket stubs or retention parts must be organized and managed strictly with the presence of the Lottery Supervisory Council.

- The location for recovering ticket stubs or retention parts and the lottery record sheet must be arranged separately from other working areas. During the recovery period of ticket stubs or retention parts and the record sheet, the Lottery Sales Joint Stock Company must closely supervise, absolutely preventing unauthorized personnel from approaching the recovery location of ticket stubs or retention parts and the record sheet.

- The recovery of ticket stubs or retention parts must be completed thirty minutes before the start of the number drawing. The person recovering the ticket stubs or retention parts must prepare a record sheet, sign it, and bear full responsibility for any errors in the recovery process.

- Only after completing the recovery of ticket stubs or retention parts and preparing the sales volume record sheet can the withdrawal of winning ticket stubs or retention parts begin to ensure objectivity and honesty, avoiding any negative incidents.

- Upon obtaining the draw results, the organization withdraws the winning ticket stubs or retention parts and compiles a record of the total prize amount to be paid. There must be confirmation with signatures from the members of the Lottery Supervisory Council.

- The withdrawal of winning ticket stubs or retention parts should be done in order by each agent, completing one agent before moving on to the next, sealing separately for each agent, and preparing a detailed record sheet analyzing the quantity of ticket stubs and retention parts for each prize category. - During the performance of duties, relevant staff must ensure they fulfill their functions, tasks, and authorities according to the provisions of the Lottery Sales Joint Stock Company.

- Upon announcing the draw results, the organization shall remove the stubs or the retained portions of winning tickets and compile a record of the prize money to be awarded. There must be confirmation with signatures from all members of the Lottery Supervisory Council.

- The stubs or retained portions of winning tickets shall be removed in sequence according to each agent, completing one agent before moving on to the next, sealing separately for each agent, and preparing a detailed list analyzing the number of stubs and retained portions for each prize category.

- During the performance of their duties, relevant staff must ensure compliance with the functions, responsibilities, and authorities assigned to them according to the regulations of the Lottery Company.

Article 11. Organization for depositing stubs or parts of tickets that have been recovered but not won.

After inspecting and counting the stubs or parts of tickets that have been recovered but not won, the recovery staff must separately package lottery tickets of each agent for each issuance period, seal each package, and send it to the ticket warehouse along with a detailed list of each agent. In case there are winning tickets missed when opening the seals to find the stubs or parts of tickets, the Supervisory Board must prepare a record of opening the seals and extracting the winning stubs or parts of tickets.

Article 12. Storage of stubs or parts of tickets that have been recovered but not won:

The storage and destruction of stubs or parts of tickets that have been recovered but not won, and the stubs or parts of winning lottery tickets that have exceeded the redemption period without being claimed, shall be carried out in accordance with the current regulations of the Ministry of Finance on the storage and destruction of unsold tickets.

Article 13. Prize payment and management of redeemed tickets:

- Payment of prizes shall be made for tickets that remain intact within their original frame, are not torn apart, patched, or erased, where the ink and handwriting of the numbers on the ticket and the stub must match, and within the redemption period stipulated in the announcement of the Lottery 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 for a legitimate winning ticket according to the regulations, and the winning ticket that has been paid out must have a hole punched through it.

- Before storing redeemed tickets, the Lottery Company must organize inspections, prepare records confirming that these tickets comply with the regulations, and create detailed lists of the number of tickets and stubs or parts of winning tickets, as well as the amount of prize money paid out.

- The storage period for winning tickets shall be implemented in accordance with the current regulations of the Ministry of Finance.

Article 14. Commission for agents:

The commission for agents is determined by the Lottery Company, but it cannot exceed 13% of sales revenue (for provinces in the delta region and cities) and 15% (for mountainous provinces and the Central Highlands).

Article 15. Ensuring the obligation to pay for lottery ticket sales between agents and the Lottery Company:

- Agents can only receive tickets after completing the legal procedures to guarantee the full payment of 100% of the amount due before receiving the tickets from the Lottery Company.

- The use of various forms of guarantees for the payment obligation of lottery agents to the Lottery Company shall be carried out in accordance with the current regulations.

Article 16. Payment for ticket sales:

Agents must submit the full proceeds from the sale of lottery tickets to the Lottery Company in accordance with the deadlines specified in the contract and the relevant current regulations of the State.

Article 17. Accounting work:

- All activities related to the issuance of lottery tickets must be recorded in accounting books in accordance with the laws and current accounting systems of the State.

- The Lottery Companies must implement reporting and statistical systems, financial reports in accordance with the current regulations of the State.

Article 18. Obligation to pay state budget:

The Lottery Companies must strictly adhere to the current legal regulations regarding taxes and other payments.

Chapter 3:

IMPLEMENTATION

Article 19. Conditions for organizing the issuance of lottery tickets:

Lottery Companies in provinces and cities that wish 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 plans divided by month and quarter.

+ Place of printing tickets, design of ticket sheets, and measures to ensure the safety of ticket sheets.

+ Organization of a network of agents for selling tickets.

+ Organization of promotional and advertising activities.

+ Economic and social benefits.

+ Organizational management measures.

Decisions approving the issuance of lottery tickets by provincial and municipal people's committees must be sent to the Ministry of Finance for monitoring and management.

Article 20. The organization of issuing Lotto lottery must fully implement the following procedures:

- Must organize market research well to develop an issuance plan suitable for consumption capacity; organize good publicity, advertising, and explanation to make the public understand the purpose, significance, and fairness of the Lotto lottery issuance.

- Before issuance, there must be sufficient material conditions to serve the issuance; must organize a good network of agents, publicly announce all regulations on issuance and participation rules.

- Initially organize issuance within a limited scope to gain experience; expansion of sales territory must be appropriate to management capacity.

- Monthly and quarterly, conduct interim reviews, regularly inspect and promptly correct deviations to prevent negative developments.

Article 21. Suspension of Lotto lottery issuance.

In cases where the Lottery Companies' issuance of Lotto lottery achieves low efficiency, incurs losses, and cannot be rectified, and cannot maintain this type of lottery issuance, the Lottery Company must submit a report to the Department of Finance and Prices, People's Committee of the province/city, and the Ministry of Finance requesting suspension of Lotto lottery issuance.

When suspending Lotto lottery issuance, the Lottery Company must comply with the following regulations:

+ Analyze the reasons leading to losses.

+ Prepare a settlement of the Lotto lottery operation from the issuance date to the cessation date and submit it to the Department of Finance and Prices and the Tax Authority.

+ The People's Committee of the province/city is the authority responsible for deciding to suspend Lotto lottery issuance.

Chapter 4:

HANDLING VIOLATIONS

Article 22. Handling violations of the regulations:

For violations of the provisions of this regulation, depending on the degree of violation, administrative penalties will be imposed (including considering suspension of Lotto lottery issuance) or referral to competent authorities for criminal responsibility.

Article 23. Handling intentional fraudulent acts, scraping, altering, printing fake tickets to claim prizes:

For intentional fraudulent acts, scraping, altering, printing fake tickets to claim prizes, depending on the degree of violation, material compensation or criminal responsibility will be pursued.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 24. Effectiveness and responsibility for implementation:

This regulation shall take effect fifteen days after its publication in the Official Gazette and shall replace the Regulation on the Organization of Issuing Lotto Lottery in provinces/cities from Ninh Thuan onwards issued on March 13, 2000, pursuant to Decision No. 37/2000/QĐ/BTC dated March 13, 2000 of the Ministry of Finance.

The Lottery Companies have the responsibility to strictly adhere to this regulation and are subject to inspection by the Department of Finance and Prices, People's Committee of the province/city, the Ministry of Finance, and competent authorities.

During implementation, if encountering difficulties, units and individuals should report to the People's Committee of the province/city and the Ministry of Finance for prompt resolution.