Decision No. 185/2003/QD-BTC of the Minister of Finance on the issuance of the agency regulations for selling lottery tickets

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
Number: 185/2003/QD-BTC	Hanoi, November 13, 2003

 

Pursuant to …;

OF THE MINISTER OF FINANCE NUMBER 185/2003/QD-BTC DATED NOVEMBER 13, 2003 ON THE ISSUANCE OF THE REGULATIONS ON LOTTERY TICKET AGENTS FOR LOTTERY CONTRIBUTIONS

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;
Considering the proposal of the Director of the Department of Financial Affairs of Banks and Financial Organizations,

DECISION:

Article 1:

This Decision promulgates the Regulations on Lottery Ticket Agents for Lottery Contributions to be applied in lottery contribution operations.

Article 2:

This Decision takes effect from January 1, 2004. The Director of the Department of Financial Affairs of Banks and Financial Organizations, the Head of the Office, Heads of units under the Ministry, Directors of Provincial Finance Departments, Directors of Lottery Contribution Companies in provinces and centrally-administered cities, and Lottery Ticket Agents for Lottery Contributions are responsible for implementing this Decision.

 

Le Thi Bang Tam (Signed)

 

REGULATIONS

LOTTERY TICKET AGENTS
(Annexed to Decision No. 185/2003/QD/BTC dated November 13, 2003 of the Minister of Finance)

Chapter 1:

GENERAL PROVISIONS

- Relending agency: Vietnam Development Bank (VDB).

1. The Regulations on Lottery Ticket Agents for Lottery Contributions apply to traditional lottery tickets, lotto tickets, instant draw lottery tickets, and instant scratch-off lottery tickets.

2. These Regulations do not apply to electronic lottery operations and special lottery draws issued through organizations and associations.

Article 2. Requirements for Implementing the Regulations on Lottery Ticket Agents for Lottery Contributions:

1. The Lottery Contribution Company shall organize a reasonable system of Lottery Ticket Agents for Lottery Contributions to enhance the efficiency of lottery contribution business operations, thereby contributing to mobilizing idle funds from various social strata into the state budget, constructing welfare, health, and educational facilities.

2. The Lottery Contribution Company and Lottery Ticket Agents for Lottery Contributions must comply with the law in their business activities, strictly adhere to the State's regulations on lottery contributions and the specific provisions set forth in these Regulations.

Article 3. Payment of proceeds from lottery ticket sales between Lottery Ticket Agents for Lottery Contributions and Lottery Contribution Companies:

The payment of proceeds from lottery ticket sales between the Lottery Contribution Company and Lottery Ticket Agents for Lottery Contributions is specified in economic contracts. Lottery Ticket Agents for Lottery Contributions must make payments to the Lottery Contribution Company according to the agreed terms recorded in the contract.

Article 4. Activities of Lottery Ticket Agents for Lottery Contributions and Forms of Lottery Ticket Agents for Lottery Contributions:

1. Activities of Lottery Ticket Agents for Lottery Contributions: This refers to the activities of organizations and individuals selling lottery tickets issued by the Lottery Contribution Company to lottery participants and earning commissions based on agreements between the parties involved in the transfer of lottery tickets.

The party transferring lottery tickets may be the Lottery Contribution Company, a Lottery Ticket Agent for Lottery Contributions, or a subordinate lottery agent.

2. Forms of Lottery Ticket Agents for Lottery Contributions:

a) Lottery Ticket Agents for Lottery Contributions (hereinafter referred to as lottery agents): These are organizations and individuals directly signing agency contracts with the Lottery Contribution Company and receiving lottery tickets from the Lottery Contribution Company to sell to lottery participants through a network of subordinate agents, lottery ticket sellers, or directly to lottery participants.

b) Subordinate Lottery Ticket Agents for Lottery Contributions (hereinafter referred to as subordinate lottery agents): These are individuals receiving lottery tickets from lottery agents to distribute to lottery ticket sellers or to sell directly to lottery participants.

c) Lottery Ticket Sellers (hereinafter referred to as lottery ticket sellers): These are individuals receiving lottery tickets from lottery agents or subordinate lottery agents to sell to lottery participants.

Chapter 2:

SPECIFIC PROVISIONS

Article 5. Conditions for operating lottery agency activities:

Lottery agencies must meet the following conditions:

a) Be a Vietnamese citizen residing in Vietnam, at least 18 years old, with full capacity for civil conduct; if it is an organization, it must be an economic organization established and legally operating in Vietnam;

b) Have assets (cash) or securities (bonds, bills, promissory notes, savings certificates) to ensure payment obligations with the Lottery Construction Company;

c) Have a lottery agency contract with the Lottery Construction Company.

2. Subordinate lottery agencies must meet the following conditions:

a) Be a Vietnamese citizen residing in Vietnam, at least 18 years old, with full capacity for civil conduct;

b) Have a contract signed with the lottery agency regarding receiving lottery tickets from the lottery agency to deliver to lottery ticket sellers or sell directly to lottery participants.

3. Lottery ticket sellers must meet the following conditions:

Commit to accepting the sale of lottery tickets from the party transferring (lottery agency or subordinate lottery agency), the obligation to pay for the sold lottery tickets, and the commission earned.

Article 6. Business Registration:

Lottery agencies, subordinate lottery agencies, and lottery ticket sellers who receive lottery tickets with a total value exceeding 300 million VND/month (based on the face value of each ticket) shall register their business operations related to lottery agency activities with the business registration authority as prescribed by law.

Article 7. Commission for Lottery Agencies:

1. The commission for lottery agencies is a fee paid by the Lottery Construction Company to the lottery agency based on the number of tickets sold, expressed as a percentage of sales revenue. The specific rate of commission is determined by the Lottery Construction Company within the limits set by the Ministry of Finance;

2. The distribution of commission levels among lottery agencies, subordinate lottery agencies, and lottery ticket sellers shall be based on mutual agreement between the parties.

Article 8. Pledge, Mortgage, and Deposit in Contract Relations Between the Lottery Construction Company and Lottery Agencies:

The Lottery Construction Company shall implement pledges, mortgages, and deposits according to the provisions of the law and the Ministry of Finance to ensure that the lottery agency fulfills its payment obligations corresponding to the number of tickets received.

Article 9. Delegation of Prize Payment Authority for Lottery Agencies:

The State Lottery Company may choose and decide whether to authorize or not authorize lottery agencies for payment. The authorization must meet the following requirements:

1. In accordance with the management capability of the lottery agency and the requirements for prize payment management of each type of lottery;

2. The value of prizes delegated for prize payment by the agency shall not exceed 500,000 VND per winning ticket;

3. Specific provisions in the lottery agency contract regarding the responsibility of the lottery agency to compensate for tickets paid out incorrectly.

Article 10. Contents of the Lottery Agency Contract:

The lottery agency contract must be in writing and must include the following main contents:

1. Name and legal address of the Lottery Construction Company;

2. Name and legal address of the lottery agency;

3. Rights and obligations of the Lottery Construction Company and the lottery agency;

4. Type of lottery tickets to be sold;

5. Quantity of tickets received, time of delivery of tickets, procedures for receiving tickets for sale, and procedures for returning unsold tickets (stale tickets);

6. Commission rate;

7. Payment method, payment time, and payment period;

8. Forms of pledge, mortgage, and deposit; methods to ensure the payment obligations of the lottery agency towards the Lottery Construction Company (measures to handle if the lottery agency violates the payment period or delays payment);

9. Compensation for damages due to non-performance of the contract;

10. Duration of the contract's validity;

Additionally, the Lottery Construction Company and the lottery agency may include other contents and clauses but they must not contravene the law.

Article 11. Rights and obligations of the Lottery Construction Company in the agency sale of lottery tickets activities:

1. The Lottery Construction Company has the following rights:

a) To select organizations and individuals to enter into lottery agency contracts;

b) To receive and manage collateral assets or mortgage assets of lottery agents;

c) To stipulate the level of commission for lottery agents in the lottery agency contract in accordance with the regulations of the Ministry of Finance;

d) To require lottery agents to pay the proceeds from the sale of lottery tickets according to the contract;

e) To authorize lottery agents to pay out prizes;

f) To inspect and supervise the implementation of regulations concerning the agency sales of lottery tickets charter and signed lottery agency contracts;

g) To support lottery agents in expanding the issuance of tickets in accordance with the lottery agency contract between the Company and the lottery agent;

2. The Lottery Construction Company has the following obligations:

a) To guide the rules for participating in the lottery and provide complete and accurate information about the type of lottery, the issue of lottery tickets issued, winning results, and related professional matters concerning the sale of lottery tickets by the agent;

b) To fulfill commitments made in the contract with the lottery agent;

c) To be responsible for and resolve issues related to lottery tickets;

d) To pay commissions according to the agreement in the lottery agency contract;

e) To request lottery agents to increase collateral, mortgage, or deposit money corresponding to the additional volume of tickets received;

f) To refund lottery agents' collateral, mortgage, or deposit money according to the agreement recorded in the contract when the lottery agent reduces the volume of tickets sold or terminates the agency contract;

g) To accept inspection and supervision by state agencies with authority over activities related to lottery operations conducted by the company's lottery agents.

Article 12. Rights and obligations of lottery agents.

1. Lottery agents have the following rights:

a) To select and enter into lottery agency contracts with one or more Lottery Construction Companies based on their own capacity (in cases where Lottery Construction Companies in the region implement a common market);

b) To receive lottery tickets and organize the consumption of lottery tickets according to the contract signed with the Lottery Construction Company;

c) To return unsold lottery tickets (stale tickets) in accordance with the provisions of the Lottery Construction Company;

d) To enjoy lottery agency commissions and other legitimate benefits derived from agency activities;

e) To receive authorization from the Lottery Construction Company to pay out prizes for winning lottery tickets;

f) To be guided by the Lottery Construction Company in business practices, provided with necessary information, and other conditions to perform the lottery agency contract;

g) To request the Lottery Construction Company to refund part or all of the deposit or mortgage assets according to the agreement in the lottery agency contract when reducing the volume of tickets sold or terminating the agency contract;

h) To participate in providing opinions and suggestions to the Lottery Construction Company regarding improvements to the lottery format, changes in prize structure, and promoting ticket sales;

2. Lottery agents have the following obligations:

a) To fulfill commitments made in the signed lottery agency contract with the Lottery Construction Company;

b) To introduce, promote, and sell lottery tickets; provide full and accurate information to lottery ticket buyers;

c) To publicize, explain, and guide buyers on issues related to lottery activities;

d) To sell lottery tickets to participants at the face value indicated on the ticket, within the prescribed market range;

e) To properly execute commitments regarding receiving tickets and returning unsold tickets (stale tickets) for traditional lottery tickets and submitting the stubs of lottery tickets to the Lottery Construction Company and timely payment of proceeds from the sale of tickets according to the signed lottery agency contract;

f) To store tickets, be responsible for the quantity and quality of tickets after receiving them from the Lottery Construction Company as stipulated in the lottery ticket sales agency contract;

g) To accept inspection and supervision by state authorities and the Lottery Construction Company; to report on the situation of agency operations and customer preferences to the Lottery Construction Company;

h) To promptly report illegal betting operators to legal authorities and the Lottery Construction Company;

i) To be responsible before the Lottery Construction Company and the law if they violate the signed lottery agency contract with the Lottery Construction Company;

Article 13. It is strictly prohibited for lottery agents, sub-agents of lottery agents, and lottery ticket sellers to engage in the following behaviors:

1. Participating in illegal lotteries under any form;

2. Providing false information in advertisements about the content and scope of operations of the Lottery Construction Company; rules for prize draws, winning numbers that harm the legitimate rights and interests of lottery ticket buyers;

3. Illegally competing for customers by promising higher rewards or other benefits not provided by the Lottery Construction Company.

Chapter 3:

VIOLATIONS AND PENALTIES:

Article 14. Violations in lottery agency activities:

1. Overdue payment for lottery tickets beyond the time stipulated in the contract;

2. Violation of the lottery ticket sales market;

3. Selling lottery tickets to lottery participants at a value exceeding the face value on the ticket;

4. Fraud in selling tickets, paying out winnings, or canceling lottery tickets;

5. Altering or forging lottery tickets to claim prizes;

6. Engaging in illegal lottery activities such as running a lottery, betting on lottery numbers, buying lottery numbers, or selling lottery predictions;

7. Failure to comply with regulations set forth in this charter;

Article 15. Handling of violations:

Violations as specified in Article 14 and other related violations, depending on the severity of the violation, may be subject to one or more of the following measures:

1. Temporary or permanent suspension from operating as a lottery agent;

2. Compensation for material losses;

3. Administrative penalties or criminal prosecution according to current national laws.

Chapter 4:

IMPLEMENTING PROVISIONS

Article 16. Effectiveness and Responsibility for Implementation

1. This regulation must be widely disseminated and implemented among lottery construction staff, lottery agents, sub-agents of lottery agents, and lottery ticket sellers in each locality.

2. This regulation takes effect from January 1, 2004, and replaces previous regulations concerning lottery ticket sales.

Any issues encountered during implementation should be reported to the Ministry of Finance for study and resolution.