Decree No. 175/2016/ND-CP amending and supplementing certain provisions of Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on operating electronic games with rewards for foreigners.

DECREE

Amending and supplementing certain provisions of the Government Decree No. 86/2013/NĐ-CP dated July 29, 2013 on operating electronic games with prizes for foreigners electronic gaming with prizes for foreign nationals

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Enterprise Law dated November 26, 2014;

Pursuant to the Investment Law dated November 26, 2014;

At the proposal of the Minister of Finance;

The Government promulgates this Decree to amend and supplement certain provisions of the Government Decree No. 86/2013/NĐ-CP dated July 29 7 2013 on operating electronic games with prizes for foreigners.

Article 1. Amending and supplementing certain provisions of the Government Decree No. 86/2013/NĐ-CP dated July 29, 2013 on operating electronic games with prizes for foreigners

1. Amending Clause 1 and Clause 2 of Article 4 as follows:

"1. Operating electronic games with prizes without having been granted a Business License, except for enterprises specified in Article 51 of this Decree.

2. Operating electronic games with prizes not in accordance with the content approved by the competent state management agency in accordance with the law."

2. Amend Clause 1 Article 5 as follows:

"1. An enterprise operating electronic games with prizes (hereinafter referred to as the enterprise) shall only be permitted to organize electronic games with prizes at a single business location that has been granted permission to operate in accordance with the law by the competent state management agency."

3. Amending and supplementing Clause 2 of Article 13 as follows:

"2. Provisions on gaming equipment

a) All electronic game machines with prizes used in the business location must be brand new, have technical specifications published by the manufacturer of electronic game machines with prizes, and have been certified by an independent testing organization operating in the G7 countries.

b) The minimum fixed payout rate for slot machines is 90% (including accumulated prizes), which is pre-set in the machine. In case the enterprise changes the payout rate, it must ensure that the payout rate does not fall below the minimum payout rate stipulated, and the enterprise must go through the re-testing procedure before putting the machine back into operation, and must specify the payout rate in the Game Rules."

4. Amending Clause 1 and Clause 6 of Article 14 as follows:

"1. Enterprises granted a Business License and enterprises specified in Article 51 of this Decree are allowed to purchase standardized currencies and electronic game machines with prizes. The purchase and importation of standardized currencies and electronic game machines with prizes shall comply with the laws on export and import, relevant laws, this Decree, and guidelines issued by the Ministry of Culture, Sports and Tourism.

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6. During the period of use, if the electronic game machines with prizes are damaged or require regular maintenance, the enterprise is entitled to carry out maintenance and repairs but is not allowed to intervene in the payout rate. If maintenance or repair of the electronic game machines with prizes involves parts that change the payout rate, the enterprise must hire an independent testing organization as stipulated in Clause 2 of Article 13 of this Decree to re-test before putting the machine back into operation."

5. Amending Point a of Clause 1 of Article 18 as follows:

"a) Organizing the operation of various types and forms of electronic games with prizes in accordance with the law and the provisions of this Decree."

6. Amending Clause 1 and Point d of Clause 3 of Article 19 as follows:

"1. An enterprise will only be considered for issuance of a Business License for operating electronic games with prizes when it has been granted permission to establish and operate a tourism accommodation facility by the competent authority and has registered to operate the electronic game with prize business according to the Investment Law and the Enterprise Law.

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3. Conditions for issuance of a Business License include:

d) Having a minimum charter capital of 200 billion VND;"

7. Abolishing Clause 6, amending Clause 2, Clause 3, and Clause 10 of Article 20 as follows:

"2. A certified copy or a copy presented together with the original for verification of the Investment Registration Certificate or the Enterprise Registration Certificate issued by the competent state management agency in accordance with the Investment Law and the Enterprise Law, including registration to operate the electronic game with prize business.

3. A certified copy or a copy presented together with the original for verification of the Decision on Rating of Tourism Accommodation Facilities issued by the competent state management agency.

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10. List, curriculum vitae, certified copies of certificates or copies presented together with the original for verification of the qualifications and professional skills of managers and executives."

8. Supplementing Point d of Clause 3 of Article 21 as follows:

"d) After being granted a Business License by the Ministry of Finance, the enterprise is responsible for completing the necessary procedures to adjust and supplement the business activities of operating electronic games with prizes in the Certificate of Eligibility for Security and Public Order in accordance with the law before organizing the operation of electronic games with prizes."

9. Amending Article 24 as follows:

"Article 24. Fees for Issuing Licenses

The fees for issuing, reissuing, adjusting, and extending the Business Condition Compliance Certificate shall be implemented in accordance with the provisions of the law on fees and charges as guided by the Ministry of Finance.

10. Amend Article 27 as follows:

"Article 27. Advertising

1. Only businesses that have been issued the Business Condition Compliance Certificate and businesses specified in Article 51 of this Decree may advertise their electronic game business activities with rewards.

2. The content of advertisements includes:

a) The name and address of the business operating electronic games with rewards;

b) The name of the electronic game with rewards;

c) The location of the business point;

d) The permitted player category as stipulated in Article 9 of this Decree.

3. Location and form of advertising

Businesses can only advertise through boards or signs placed inside tourist accommodation facilities that have been granted permission to operate electronic games with rewards by competent state management agencies, but must ensure that the advertisement content cannot be heard or seen from outside.

4. In addition to the provisions of Clause 1, 2, and 3 of this Article, businesses are not allowed to advertise their electronic game business activities with rewards in any form and must comply with other laws on advertising.

11. Repeal Point d Clause 1 and Point c Clause 8 of Article 32.

12. Amend Clause 3 and Clause 4 of Article 33 as follows:

"3. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, relevant ministries and sectors, and provincial people's committees where enterprises organize business operations to conduct periodic inspections every three years to assess the ability to continue maintaining or revoking the Business Condition Compliance Certificate of the enterprise or to propose competent state management agencies to consider and handle according to the law. The inspection content includes:

a) Checking compliance with all conditions stipulated in Points a, b, c, and d of Clause 3 of Article 19 of this Decree.

For businesses specified in Article 51 of this Decree, checking compliance with all business conditions for electronic games with rewards as permitted by competent state management agencies according to the law.

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4. Provincial People's Committees and heads of public security agencies at district level or higher shall decide to conduct surprise inspections when discovering enterprises with signs of violations regarding permitted players, ensuring public security and social safety, or when there are reports of criminal offenses related to enterprises."

13. Amend Clause 3 of Article 38 as follows:

"3. A fine of VND 90,000,000 to VND 100,000,000 shall be imposed on individuals engaging in the business of electronic games with rewards without a Business Condition Compliance Certificate. The penalty amount will be doubled for organizations or units violating the provisions of this clause, except for businesses specified in Article 51 of this Decree."

14. Amend Clause 2 and Clause 4 of Article 39 as follows:

"2. A fine of VND 180,000,000 to VND 200,000,000 shall be imposed on enterprises engaging in the business of electronic games with rewards at locations not approved by competent state management agencies according to the law.

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4. Apply remedial measures:

Compel the restoration of the business point layout to meet all conditions as prescribed by law and at the location approved by competent state management agencies according to the law."

15. Amend Clause 3 of Article 45 as follows:

"3. A fine of VND 90,000,000 to VND 100,000,000 shall be imposed on enterprises engaging in the business of electronic game machines with rewards that do not meet the provisions of Article 13 of this Decree."

16. Amend Article 51 as follows:

Article 51. Transitional Provisions

Enterprises that have been issued an Investment Registration Certificate or a Business Registration Certificate, including the operation of electronic games with rewards, or have a document from a competent state management agency allowing the operation of electronic games with rewards before this Decree takes effect, may continue to operate electronic games with rewards according to the Investment Registration Certificate or Business Registration Certificate already issued or the document from a competent state management agency allowing such operation. If necessary, enterprises can apply for issuance of a Business Condition Compliance Certificate according to the following procedures:

1. The application dossier for a Business Condition Compliance Certificate includes:

- A certified copy or a copy accompanied by the original for verification of the Investment Registration Certificate or Business Registration Certificate still valid, which includes the operation of electronic games with rewards, or a document from a competent state management agency allowing the operation of electronic games with rewards;

- Documentation proving the quantity, type, and form of electronic game machines with rewards actually operated by the enterprise according to the law before this Decree takes effect or a document permitting such operation from a competent state management agency (if applicable);

- Dossiers stipulated in Clauses 1, 3, 4, 5, 7, 8, 9, and 10 of Article 20 of this Decree. For enterprises without tourist accommodation facilities, they are exempted from submitting dossiers stipulated in Clauses 3 and 4 of Article 20 of this Decree.

2. Enterprises submit one set of the application dossier for a Business Condition Compliance Certificate to the Ministry of Finance. Within thirty working days from the date of receipt of a complete and valid dossier from the enterprise, the Ministry of Finance shall issue a Business Condition Compliance Certificate to the enterprise, wherein:

a) The quantity, type, and form of electronic game machines with rewards that the enterprise is permitted to operate shall be determined based on the Investment Registration Certificate or Business Registration Certificate or the actual quantity, type, and form of electronic game machines with rewards operated by the enterprise according to the law before this Decree takes effect or a document permitting such operation from a competent state management agency. In case there is a difference in the number of electronic game machines with rewards, the enterprise shall be permitted to operate the highest number.

As for enterprises that have not yet organized the operation of electronic game business with rewards, the number of electronic game machines with rewards that the enterprise is permitted to operate shall be determined according to the Investment Registration Certificate or the Enterprise Registration Certificate or the approval document of the competent state management agency. In case the Investment Registration Certificate or the Enterprise Registration Certificate or the approval document of the competent state management agency does not specify the number of electronic game machines with rewards, the enterprise shall be permitted to operate according to the quantity specified in Clause 1 of Article 7 of this Decree.

b) The validity period of the Business Condition Fulfillment Certificate shall be equal to the remaining operating period specified in the Investment Registration Certificate or the Enterprise Registration Certificate or the approval document of the competent state management agency. In case the Investment Registration Certificate or the Enterprise Registration Certificate or the approval document of the competent state management agency does not specifically stipulate the business term, the validity period of the Business Condition Fulfillment Certificate for electronic game business with rewards shall be implemented according to the provisions of Article 22 of this Decree."

Article 2. Implementation clause

This Decree takes effect from February 15, 2017.

For enterprises that have submitted applications for issuance of the Business Condition Fulfillment Certificate and received notification from the Ministry of Finance regarding the completeness and legality of their application files in accordance with Clause 1 of Article 21 of Decree No. 86/2013/NĐ-CP before the effective date of this Decree, they shall continue to be reviewed and issued the Business Condition Fulfillment Certificate in accordance with Decree No. 86/2013/NĐ-CP.

The Minister of Finance shall take the lead and coordinate with relevant ministries and sectors to guide the implementation of this Decree.

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial people's committees under the central government, and related organizations and individuals are responsible for implementing this Decree./.