Decision No. 143/2003/QD-BTC of the Minister of Finance Issuing the Regulation on the Organization of Issuing Traditional Lottery Tickets

Pursuant to …;

DECISION NO. 143/2003/QD-BTC OF SEPTEMBER 9, 2003 ISSUED BY THE MINISTER OF FINANCE ON THE REGULATIONS ON THE ORGANIZATION AND ISSUE OF LOTTERY TICKETS FOR SOCIAL WELFARE

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. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the 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 issuance of traditional 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. 729 TC/QD/TCNH dated October 15, 1997 of the Ministry of Finance on the issuance of traditional lotteries.

The Heads of the Department of Banking and Financial Institutions, the Director 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

REGULATIONS ON THE ORGANIZATION AND ISSUE OF LOTTERY TICKETS FOR SOCIAL WELFARE
(Pursuant to Decision No. 143/2003/QD-BTC dated September 9, 2003 of the Ministry of Finance)

Traditional lottery tickets are a type of lottery ticket with periodic draw results. To ensure compliance with the unified management regulations for issuing lottery tickets and relevant laws, the Ministry of Finance issues these Regulations on the organization and issuance of traditional lottery tickets for provincial and city lottery companies across the country to have a basis for implementation.

Chapter 1:

GENERAL PROVISIONS

Article 1. Purpose of Issuing Traditional Lottery Tickets:

Issuing lottery tickets generally, and traditional lottery tickets specifically, is a financial measure of the State to mobilize savings income from the public into the State budget for social welfare programs through a healthy entertainment activity with prizes.

Article 2. Requirements for Issuing Traditional Lottery Tickets:

- Issuing traditional lottery tickets must comply with the unified management regulations for issuing lottery tickets, current laws, and the provisions of these regulations.

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

Chapter 2:

SPECIFIC PROVISIONS

Article 3. Traditional Lottery Tickets Must Meet the Following Requirements:

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

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

- The stubs of the tickets must meet management and verification requirements for issued tickets and winning tickets.

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

Article 4. 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, not exceeding 10,000 dong per ticket.

Article 5. Prize Structure:

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

- 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 target programs that have been and will be built using lottery revenues and other relevant information related to the issuance process.

- Advertising must be conducted in moderation, focusing on meeting the necessary knowledge requirements for each issuance period to serve participants in traditional lotteries such as the prize structure, participation rules, and other information about winners, prize amounts, taxes paid to the budget, and usage for social welfare goals.

Article 7. Issuance Organization:

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

- Traditional lotteries are issued through a network of lottery agents and collaborators who are organizations and entities related to the target programs. The Lottery Company establishes a network of agents to develop widely within the defined market scope, actively participating in combating illegal gambling. The issuance of lottery tickets by the Lottery Company to agents and organizations is carried out according to the agency regulations and other relevant provisions.

- The issuance of lottery tickets must ensure sufficient quantities as announced in each issuance period and must be meticulously planned based on demand surveys to avoid waste; at the same time, it must be widely publicized to the people for monitoring and supervising lottery activities.

- For provinces implementing a common market mechanism, the Lottery Company in the region may establish transfer stations outside the province to issue lottery tickets. Procedures for establishment and permission to set up offices follow current regulations. Transfer stations outside the province are units under the Lottery Company responsible for balancing ticket distribution, urging agent debt recovery, and are not allowed to engage in business operations.

Article 8. Market for Traditional Lottery Ticket Consumption:

The market for traditional lottery ticket consumption is within the administrative boundaries of localities or regions as stipulated by the Association Council approved by the Ministry of Finance.

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

Article 9. Number Drawing Equipment:

- Before officially putting number drawing machines or ball cages, balls into use, the Lottery Company must organize trial number drawings under the supervision of the Lottery Supervisory Board. Machines or ball cages, balls that pass the trial number drawing and meet the objective and fair requirements must be documented in detail regarding their dimensions and weight as a basis for supervision and carefully preserved to prevent deformation.

- The Lottery Company must establish and promulgate procedures for the preservation and use of number drawing machines or ball cages, balls.

Article 10. The organization of drawing numbers for traditional XSKT prize draws shall be carried out in accordance with the following provisions:

- The XSKT Company must establish and issue procedures for the steps of work to be implemented in organizing the drawing of numbers, the internal regulations of the drawing hall, specific duties and responsibilities of the director and employees of the XSKT Company in organizing the drawing of numbers.

- The XSKT Company must prepare all necessary facilities to serve the organization of the drawing of numbers well. The drawing hall must ensure hygiene, power supply, lighting, information equipment, and security during the drawing process.

- The date of the prize draw shall be carried out in accordance with the regulations of the Ministry of Finance.

- The XSKT Supervisory Board shall inspect the lottery machine or ball cage, balls before the official drawing of numbers.

- The drawing of numbers must be conducted publicly after completing the collection of unsold tickets.

- The drawing of numbers must ensure absolute safety, objectivity, honesty, and be carried out strictly according to the date, time, and location specified in the announcement.

- The drawing of numbers process must necessarily have the presence of the Drawing Supervisory Board and the destruction of unsold tickets (hereinafter referred to as the XSKT Supervisory Board) established by the People's Committee of the province or city in accordance with the regulations of the Ministry of Finance. The results of the drawing of numbers must be recorded in a protocol with full signatures of the members of the XSKT Supervisory Board and serve as a legal basis for announcing the results of the XSKT.

- Announcing the results of the prize draw must be carried out in accordance with the guidelines of the Ministry of Finance.

- The content of the announcement of the XSKT results must be clear and accurate, containing all necessary elements such as: Date and place of the drawing of numbers; serial number issued; prizes, winning numbers, and corresponding prize money for each prize; name of the XSKT Company issuing the tickets to facilitate the XSKT Company's organization of prize payouts and participants in purchasing XSKT tickets to check their winning numbers.

Article 11. Recovery of unsold tickets (tickets not sold):

- When recovering and counting unsold tickets (tickets not sold) including those returned by authorized agents and unsold tickets from the XSKT Company that have not been put into circulation in the same issuance period, there must be the presence of the XSKT Supervisory Board.

- The recovery of unsold tickets (tickets not sold) must be completed 30 minutes before the start of the drawing of numbers.

- Before submitting unsold tickets (tickets not sold), the agent must cut the corner of the ticket according to the regulations and submit the cut tickets along with the 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 compared to the stipulated time, the XSKT Company will refuse to accept 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 XSKT Company must register the location for organizing the destruction of unsold tickets with the Department of Finance and Prices.

Article 12. Organization of warehousing storage of recovered tickets and determination of revenue from ticket sales:

After verifying and counting the recovered tickets, the ticket recovery staff must separately package the recovered tickets of each agent and unsold tickets at the XSKT Company according to each issuance period to complete the warehousing storage procedures; compile the quantity of unsold tickets (tickets not sold), determine the number of tickets consumed and revenue from ticket sales in the period, and record it in a protocol with signatures of the members of the XSKT Supervisory Board.

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

Article 13. Storage of unsold tickets (tickets not sold out):

The storage period for unsold tickets (tickets not sold out) in the warehouse shall be carried out in accordance with current regulations. At the end of the storage period, the Lottery Company shall check the quantity of unsold tickets stored and report to the Lottery Supervisory Board to request destruction.

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

- Only pay prizes for tickets that are intact, uncut, undamaged, unaltered, and within the prize claim period specified on the ticket or in the company's lottery issuance announcement.

- Before making prize payments, the prize payment staff must verify the winning ticket presented by the ticket holder to ensure it meets all valid criteria for a legitimate winning ticket according to the regulations. For first prize and special prize winning tickets, 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 winning tickets from second prize downwards shall be decided by the Lottery Company. Paid-out winning tickets must have a hole punched through them.

- Prior to storing paid-out winning tickets, an inspection must be organized, a record made confirming that these tickets comply with the regulations, and a detailed list prepared of the number of tickets and 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 15. Lottery Ticket Sales Agents:

The Lottery Company organizes a network of sales agents for traditional lottery tickets. Traditional lottery sales agents must meet the following requirements:

- Proficient in specialized skills (promotion, record keeping, selling tickets).

- Adherence to the sales agent charter and specific regulations of the Lottery Company.

- Sales agents must advance funds to purchase tickets or provide cash collateral, or pledge securities of equivalent value (bonds, promissory notes, government bonds) minus the commission for selling tickets.

- Sales agents must enter into a sales agency contract with the Lottery Company, which must clearly stipulate the rights, obligations, and material responsibilities between both parties.

Article 16. Sales Agent Commission:

The sales agent commission is determined by the Lottery Company but shall not exceed 13% of the revenue from ticket sales (for provinces in the delta region and cities) and not more than 15% (for mountainous provinces and the Central Highlands).

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

- Sales agents may only receive tickets after completing the legal procedures to guarantee payment obligations of 100% for the tickets received or must make immediate payment before receiving tickets from the Lottery Company.

- The use of methods to ensure payment obligations of sales agents to the Lottery Company shall be carried out in accordance with current regulations.

Article 18. Payment of Lottery Ticket Sales Revenue Between Sales Agents and the Lottery Company:

Sales agents must remit the full proceeds from lottery ticket sales to the Lottery Company according to the deadlines specified 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 in accounting books in accordance with the current accounting system prescribed by law.

- 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 regulations.

Chapter 3:

HANDLING VIOLATIONS

Article 21. Handling violations of the charter:

In cases of violation of the provisions of this charter, depending on the level of violation, administrative penalties (including consideration of suspending the issuance of traditional lottery tickets) or referral to competent authorities for criminal responsibility shall be imposed.

Article 22. Handling intentional fraudulent acts, 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 level of violation, material compensation or criminal responsibility shall be pursued.

Chapter 4:

IMPLEMENTATION

Article 23. Implementation organization:

- The General Director of the Lottery Company is responsible for reviewing tasks related to the issuance of lottery tickets to arrange and assign business units within the Lottery Company to implement the provisions of this charter correctly.

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

- The People's Committee of provinces and centrally governed cities directs and organizes the management of lottery activities in their respective areas in accordance with the provisions of this charter.

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

Article 24. Effective date:

This charter takes effect fifteen days from the date of publication in the Official Gazette and replaces the traditional lottery issuance charters issued together with Decision No. 729 TC/QĐ/TCNH dated October 15, 1997 of the Ministry of Finance.

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