Decision No. 143/2003/QD-BTC Issuing the Regulation on the Organization of Traditional Lottery Ticket Issuance

DECISION OF THE MINISTER OF FINANCE

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

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THE MINISTER OF FINANCE

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

- BASED ON DECREE NO. 77/2003/ND-CP OF July 1, 2003 OF THE GOVERNMENT PROVIDING FOR THE FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

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

DECISION:

Article 1. These regulations on the organization and issuance of traditional lottery tickets are hereby issued 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. 729 TC/QD/TCNH dated October 15, 1997 of the Ministry of Finance regarding the issuance of traditional lotteries.

The Director of the Department of Finance for Banks and Financial Institutions, the Head of the Ministry's Office, 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.

REGULATIONS

ORGANIZATION AND ISSUANCE OF TRADITIONAL LOTTERY TICKETS

(Issued pursuant to Decision No. 143/2003/QD-BTC dated September 9, 2003 of the Ministry of Finance)

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Traditional lottery tickets are a type of lottery with periodic number draws. To ensure compliance with national regulations on unified management of lottery issuance and relevant laws, the Ministry of Finance issues these regulations on the organization and issuance of traditional lottery tickets for lottery companies in provinces and cities across the country to have a basis for implementation.

PART I

GENERAL PROVISIONS

Article 1. Purpose of issuing traditional lottery tickets:

Issuing lotteries generally, and traditional lottery tickets specifically, is a financial measure of the State to mobilize residents' savings income into the State budget for use in social welfare programs through a healthy form of entertainment with prizes.

Article 2. Requirements for issuing traditional lottery tickets:

- Issuing traditional lottery tickets must comply with all national regulations on unified management of lottery issuance, current laws, and provisions in these regulations.

- Issuing traditional lottery tickets must also organize effective promotional activities to explain to the public the purpose and significance of lottery issuance, contributions made through participation in purchasing lottery tickets, and appropriate measures to combat illegal gambling.

PART II

SPECIFIC PROVISIONS

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

- They must have appropriate dimensions reflecting all necessary elements to serve participants buying lottery tickets and meet management requirements (including price, serial number, prize numbers, draw date, rules for prize payment, and rules for recording name, ID card number, and address of the ticket holder).

- Images printed on the tickets must be consistent with Vietnamese customs and traditions, particularly those promoting construction projects funded by lottery revenues for promotional purposes.

- Printed tickets must have stubs that meet management and verification requirements for issued tickets and winning tickets.

- Printing of tickets must be carried out at state printing facilities with credibility and technical capabilities to ensure safety and prevent counterfeiting.

Article4. Ticket Price:

The price of traditional lottery tickets is established based on ensuring balance and harmony with other types of lottery tickets issued at various levels, with a maximum not exceeding 10,000 dong per ticket.

Article 5. Prize Structure:

- The total amount allocated for prizes in each issue shall not exceed 50% of the planned revenue of that issue.

- The proportion and value of the highest prize shall be implemented according to the current regulations of the Ministry of Finance.

Article 6. Promotion and Advertising:

- When issuing traditional lottery tickets, the Lottery Company must organize promotional activities to introduce social programs funded by lottery revenues and other relevant information related to the issuance process.

- Advertising must be conducted in moderation, focusing on providing essential information about each issue to serve participants such as prize structure, participation rules, and other information about winners, prize amounts, taxes paid to the budget, and funds used for social welfare programs.

Article 7. Organization of Issuance:

- The Lottery Company organizes the issuance of traditional lottery tickets concurrently with other types of lotteries based on fulfilling assigned tasks and maintaining the development of all lottery types.

- Traditional lottery tickets are issued through a network of lottery agents and cooperators who are organizations and entities related to social programs. The Lottery Company establishes a network of agents to develop widely within the defined market area and actively combat illegal gambling. The distribution of tickets from the Lottery Company to agents and their sale is carried out according to the agent regulations and related provisions.

- The issuance of lottery tickets must ensure sufficient quantities as announced for each issue and must be meticulously planned based on demand surveys to avoid waste; while widely publicizing for the people to monitor and supervise lottery activities.

- For provinces operating under a common market mechanism, Lottery Companies in the region may establish transfer stations outside the province. Procedures for establishment and permission to set up offices follow current regulations. Transfer stations outside the province are subordinate units of the Lottery Company responsible for balancing ticket distribution, urging agents to collect debts. Such stations are not allowed to engage in business operations.

Article 8. Market for Consuming Traditional Lottery Tickets:

The market for consuming traditional lottery tickets is within the administrative boundaries of localities or regions approved by the Inter-Provincial Council and ratified by the Ministry of Finance.

Consumption of tickets in areas beyond the specified boundaries must be agreed upon in writing between two companies and reported to the Ministry of Finance.

Article 9. Equipment for Drawing and Announcing Results:

- The lottery company must organize a trial number drawing before officially putting the spinning machine or lottery cage/ball into use, under the supervision of the Lottery Supervisory Council. After the trial number drawing, the spinning machines or lottery cages/balls that meet the requirements for objectivity and fairness must be documented with detailed descriptions of their dimensions and weight to serve as a basis for supervision and must be carefully stored to prevent deformation from external influences.

- The lottery company must establish and issue procedures for the storage and use of spinning machines or lottery cages/balls.

Article 10. The traditional lottery number drawing and prize announcement shall be carried out in accordance with the following provisions:

- The lottery company must establish and issue procedures for the steps to be taken in organizing the number drawing and prize announcement, internal rules for the drawing hall, specific duties and responsibilities of the company's director and employees during the number drawing process.

- The lottery company must prepare sufficient facilities to ensure smooth organization of the number drawing and prize announcement. The drawing hall must be clean, have reliable power supply, adequate lighting, communication equipment, and security measures during the drawing process.

- The date of the prize announcement shall be conducted according to the regulations of the Ministry of Finance.

- The Lottery Supervisory Council must inspect the spinning machines or lottery cages/balls before the official number drawing and prize announcement.

- The number drawing and prize announcement must be conducted publicly after the completion of the recovery of unsold tickets.

- The number drawing and prize announcement must ensure absolute safety, objectivity, and fairness, and must be carried out strictly according to the date, time, and location specified on the notice.

- The number drawing and prize announcement must be witnessed by the Lottery Supervisory Council established by the provincial or municipal People's Committee in accordance with the regulations of the Ministry of Finance. The results of the number drawing and prize announcement must be recorded in a protocol signed by all members of the Lottery Supervisory Council and serve as the legal basis for announcing the lottery results.

- The announcement of the prize results must be conducted in accordance with the guidelines of the Ministry of Finance.

- The content of the lottery result announcement must be clear and accurate, including necessary elements such as: the date and place of the number drawing and prize announcement; the serial number of the issued tickets; prizes, winning numbers, and corresponding prize money for each prize; the name of the lottery company issuing the tickets to facilitate the company's prize distribution and allow ticket buyers to check their winning numbers.

Article 11. Recovery of unsold tickets (tickets that did not sell):

- When recovering and counting unsold tickets (unsold tickets), including those returned by authorized agents and those not yet circulated by the lottery company in the same issuance period, there must be the presence of the Lottery Supervisory Council.

- The recovery of unsold tickets (unsold tickets) must be completed thirty minutes before the start of the number drawing and prize announcement.

- Before submitting unsold tickets (unsold tickets), the agent must cut the corner as required and submit the cut tickets along with a list to the company's staff for verification and recovery. If the submitted tickets meet the invalidation requirements, they will be counted and confirmed. In case the agent submits tickets late, the lottery company will refuse to accept the unsold tickets from that agent.

The cutting of corners for unsold tickets still managed by the lottery company (if any) must also be carried out according to the above regulations. The company must arrange staff to carry out this work.

The lottery company must register the locations for the destruction of unsold tickets with the Department of Finance and Prices.

Article 12. Organizing the storage and determining sales revenue of recovered tickets:

After counting the recovered tickets, the ticket recovery staff must separately package the recovered tickets of each agent and those not yet circulated by the lottery company according to each issuance period to complete the warehouse storage procedures; compile the quantity of unsold tickets (unsold tickets), determine the number of sold tickets and sales revenue for the period, and create a protocol signed by the members of the Lottery Supervisory Council.

The lottery company must report to financial authorities and tax authorities the quantity and types of tickets issued, actually consumed, and destroyed quarterly and annually.

Article 13. Storage of unsold tickets (unsold tickets):

The storage period of unsold tickets (unsold tickets) in the warehouse shall be carried out in accordance with current regulations. At the end of the storage period, the lottery company must recheck the quantity of stored unsold tickets and request the Lottery Supervisory Council to approve their destruction.

Article 14. Prize payment and management of paid-out tickets are specifically regulated as follows:

- Only tickets that remain intact, undamaged, unaltered, and within the redemption period specified on the ticket or in the company's issuance announcement will be eligible for prize payment.

- Prior to making prize payments, the prize payment staff must verify the presented winning ticket to ensure it meets the criteria for a valid winning ticket. For first prize and special prize winners, when claiming the prize, the ticket holder must record their full name, address, and national identity card number on the back of the ticket. The lottery company will only pay the prize to the name and address recorded. Recording the full name, address, and national identity card number on the back of tickets for second prize and lower is determined by the lottery company. Paid-out winning tickets must be punched.

- Before storing paid-out tickets, a thorough inspection must be organized, documented, and a detailed list created of the number of tickets and prize amounts paid out.

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

Article 15. Lottery ticket selling agents:

The lottery company organizes a network of traditional lottery ticket selling agents. Selected traditional lottery agents must meet the following requirements:

- Proficient in specialized skills (promotion, record keeping, ticket sales).

- Adherence to the agency regulations and specific company rules.

- Agents must advance funds to purchase tickets or provide cash collateral or pledge securities of equivalent value to the ticket amount (excluding sales commissions).

- Agents must sign an agency contract with the lottery company, which clearly stipulates the rights, obligations, and material responsibilities of both parties.

Article 16. Agent commission:

The commission for lottery agents shall be determined by the Lottery Company but shall not exceed 13% of the revenue from ticket sales (for plains provinces and cities) and 15% (for mountainous provinces and the Central Highlands).

Article 17.  Ensure the obligation to pay lottery ticket proceeds between the Lottery Company and lottery agents:

- Agents may only receive tickets after completing the legal procedures to guarantee their obligation to pay 100% of the value of the tickets received or must settle the payment immediately before receiving the tickets from the Lottery Company.

- The implementation of forms of guaranteeing payment obligations of lottery agents to the Lottery Company shall be carried out in accordance with current regulations.

Article 18. Payment of lottery ticket proceeds between lottery agents and the Lottery Company:

Lottery agents must remit the full amount of lottery ticket proceeds to the Lottery Company according to the deadlines stipulated in the contract and in accordance with relevant current regulations.

Article 19. Accounting work:

- All activities related to the issuance of traditional lottery tickets must be recorded and entered into accounting books in accordance with the current legal provisions on accounting systems.

- Companies must implement statistical reporting and financial reporting systems in accordance with current regulations.

Article 20. Obligation to pay state budget:

The Lottery Company must comply with the current tax laws and other payments as prescribed by the State.

 CHAPTER III

VIOLATION HANDLING

Article 21. Handling violations of the regulations:

 Violations of the provisions of this regulation will be subject to administrative penalties (including consideration of suspension of traditional lottery issuance) or referral to competent authorities for criminal prosecution depending on the severity of the violation.

Article 22. Handling intentional fraudulent acts such as scraping, altering, printing fake tickets to claim prizes:

For intentional fraudulent acts such as scraping, altering, printing fake tickets to claim prizes, depending on the severity of the violation, material compensation or criminal prosecution will be required.

PART IV

ORGANIZATION AND IMPLEMENTATION

Article 23. Implementation:

- The General Director of the Lottery Company is responsible for reviewing tasks related to lottery issuance to arrange and assign business units within the Lottery Company to strictly adhere to the provisions of this regulation.

- The Lottery Supervisory Council is responsible for assigning members of the council to inspect compliance with relevant provisions of this regulation. The Department of Finance and Prices is a permanent member of the Lottery Supervisory Council and is responsible for creating conditions for the Lottery Supervisory Council to supervise the Lottery Company's strict adherence to the provisions of this regulation.

- The People's Committee of provinces and centrally-administered cities directs and organizes the management of lottery activities within their jurisdiction in accordance with the provisions of this regulation.

- The Ministry of Finance inspects lottery activities and handles violations of this regulation nationwide.

Article 24. Effective Date:

This regulation takes effect 15 days after its publication in the Official Gazette and replaces previous lottery issuance regulations issued together with Decision No. 729TC/QĐ/TCNH dated October 15, 1997, of the Ministry of Finance.

 During implementation, if there are difficulties or obstacles, units and individuals should report them to the Ministry of Finance for timely research and resolution./.