Decision No. 185/2003/QD-BTC On the issuance of the lottery ticket sales agency regulations

DECISION OF THE MINISTER OF FINANCE

Von issuing the agency regulations for selling lottery tickets

__________________________

 THE MINISTER OF FINANCE

- BASED ON DECREE NO. 86/2002/ND-CP OF November 5, 2002 OF THE GOVERNMENT PROVIDING FOR THE FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF MINISTRIES AND GOVERNMENTAL AGENCIES AT THE MINISTERIAL LEVEL;

- 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;

- Considering the proposal of the Director of the Department of Banking and Financial Organization Finance,

DECISION:

Article 1. hereby promulgates the attached agency regulations for selling lottery tickets to be applied in lottery operations.

Article 2. This Decision takes effect from January 1, 2004. The Director of the Department of Banking and Financial Organizations, the Head of the Office, the Heads of units under the Ministry, the Directors of Provincial Finance Departments, the Directors of Lottery Companies in provinces and centrally governed cities, and lottery ticket selling agencies are responsible for implementing this Decision.

 

REGULATIONS ON LOTTERY TICKET SELLING AGENCIES

(Issued pursuant to Decision No. 185/2003/QĐ/BTC dated November 13, 2003 of the Minister of Finance)

 

PART I. GENERAL PROVISIONS

Article 1.  Scope of application:

1. The agency regulations for selling lottery tickets apply to traditional lottery ticket sales, lotto tickets, instant lottery tickets with immediate results, and scratch-off lottery tickets with immediate results.

2. These regulations do not apply to electronic lottery sales and special lottery issues issued through organizations and associations.

Article 2.  Requirements for implementing the agency regulations for selling lottery tickets:

1. The lottery company must organize a reasonable system of lottery ticket selling agencies to enhance the efficiency of lottery sales operations, thereby contributing to mobilizing idle funds from various social strata into the state budget, building welfare, health, and educational facilities.

2. The lottery company and lottery ticket selling agencies must comply with the law in their business activities and strictly adhere to the State's regulations on lottery operations and the specific provisions set forth in these regulations.

Article 3Payment of lottery ticket sales proceeds between lottery ticket selling agencies and lottery companies:

Payment of lottery ticket sales proceeds between the lottery company and lottery ticket selling agencies shall be specified in economic contracts. Lottery ticket selling agencies must make payments to the lottery company according to the terms agreed upon in the contract.

Article 4. Activities of lottery ticket selling agencies and forms of lottery ticket selling agencies:

1. Activities of lottery ticket selling agencies: This refers to the activities of organizations and individuals selling lottery tickets issued by the lottery company to lottery participants and earning commissions based on agreements between the parties involved in the ticket transfer.

 The party transferring lottery tickets may be the lottery company, a lottery ticket selling agency, or a subordinate lottery agency.

2. Forms of lottery ticket selling agencies:

a)  Lottery ticket selling agencies (hereinafter referred to collectively as lottery agencies): Are organizations and individuals directly entering into agency contracts with the lottery company and receiving lottery tickets from the lottery company to sell to lottery participants through a network of subordinate agencies, lottery ticket sellers, or directly to lottery participants.

b) Subordinate lottery ticket selling agencies (hereinafter referred to as subordinate lottery agencies):  Are individuals receiving lottery tickets from lottery agencies to sell to lottery ticket sellers or directly to lottery participants.:  Lottery ticket sellers (hereinafter referred to as lottery ticket sellers):

c) Are individuals receiving lottery tickets from lottery agencies or subordinate lottery agencies to sell to lottery participants.: Are individuals who receive lottery tickets from lottery agents or sub-agents selling to lottery participants.

Chapter II.  SPECIFIC PROVISIONS

Article 5.  Conditions for lottery agency operations:

1.         Lottery agencies must meet the following conditions:

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

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

c) Have a lottery agency contract with the Lottery 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 to act in civil matters;

b) Have a contract signed with the lottery agency regarding the receipt of lottery tickets from  the lottery agency to hand over to lottery ticket sellers or sell directly to lottery participants.

3. Lottery ticket sellers must meet the following conditions:

 Commit to receiving and selling lottery tickets from the grantor (lottery agency or subordinate lottery agency), the obligation to pay for 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) must register their business activities related to lottery agency operations with the business registration authority as prescribed by law.

Obligations of cooperatives Commission for lottery agencies:

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

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

Article 8. Collateral, mortgage, and pledge in the contractual relationship between the Lottery Company and lottery agencies:                                                         

 The Lottery Company shall implement collateral, mortgage, and deposit 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. Authorization for lottery agencies to pay out prizes:

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 prize payout requirements of each type of lottery;

2. The value of authorized prize payouts by the agency shall not exceed 500,000 VND per winning ticket;

3. Specific provisions in the lottery agency contract regarding the liability of the 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 include the following main contents:

1. Name and legal address of the Lottery Company;

2. Name and legal address of the lottery agency;

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

4. Type of lottery tickets to be sold;

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

6. Commission rate;

7. Payment method, payment time, payment period;

8. Forms of collateral, mortgage, and deposit; methods to ensure the payment obligations of the lottery agency to the Lottery 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 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 Company in lottery ticket sales agency operations:

1.  The Lottery Company has the following rights:

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

b) To receive and manage collateral or mortgaged assets of the lottery agency;

c) To determine the agency commission rate in the lottery agency contract according to the regulations of the Ministry of Finance;

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

e) To authorize the lottery agency to pay out prizes;

f) To inspect and supervise compliance with the regulations of the lottery ticket sales agency rules and the signed lottery agency contract;

g) To support the lottery agency in expanding ticket issuance according to the terms of the lottery agency contract between the company and the agency;

2.  The Lottery 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, winning results, and related professional services concerning the sale of lottery tickets by the agency;

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

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

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

e) To request the lottery agency to increase collateral, mortgage, or deposit funds corresponding to additional ticket quantities received;

f) To refund the lottery agency's collateral, mortgage, or deposit funds according to the agreement in the contract when the agency reduces the quantity of tickets sold or terminates the agency contract;

g) To accept supervision by competent state authorities regarding activities related to lottery operations conducted by the company's lottery agency.

Article 12. Rights and obligations of lottery agencies.

1.  Lottery agencies have the following rights:

a) To choose and enter into lottery agency contracts with one or more Lottery Companies according to their capacity (in cases where Lottery Companies in the region implement a common market);

b) To receive lottery tickets and organize their sale according to the contract signed with the Lottery Company;

c) To return unsold lottery tickets (stale tickets) according to the Lottery Company's regulations;

d) To receive the commission for lottery agencies and other legitimate benefits from agency operations;

e) To be authorized by the Lottery Company to pay out prizes for winning lottery tickets;

f) To receive guidance on business practices, necessary information, and other conditions from the Lottery Company to perform the lottery agency contract;

g) To request the Lottery Company to refund part or all of the deposit or mortgaged assets according to the agreement in the lottery agency contract when reducing the quantity of tickets sold or terminating the agency contract.

h) Participate in providing opinions and contributions to the Lottery Company on measures to improve lottery formats, change prize structures, and promote ticket sales.

2.  The lottery agent shall fulfill the following obligations:

a) Implement the commitments made in the signed lottery agency contract with the Lottery Company;

b) Introduce, solicit, sell lottery tickets; provide complete and accurate information to lottery ticket buyers;

 c) Promote, explain, and guide lottery ticket buyers on issues related to lottery activities;

d) Sell lottery tickets to participants at the face value indicated on the ticket; comply with regulations regarding the market scope for selling tickets;

e) Fulfill commitments regarding the receipt of unsold tickets (unsold tickets) for traditional lotteries and return the stubs of lottery tickets to the Lottery Company, and promptly pay the full amount of ticket sales according to the signed lottery agency contract;

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

g) Accept supervision and inspection by competent state authorities and the Lottery Company; implement reporting systems to inform the Lottery Company about the agency's operational status and customer preferences;

h) Timely report to legal authorities and the Lottery Company any individuals involved in illegal betting activities;

i) Be liable before the Lottery Company and under the law if they violate the signed lottery agency contract with the Lottery Company;

Article 13.  Lottery agents, sub-agents, and lottery ticket sellers are strictly prohibited from engaging in the following behaviors:

1. Participating in illegal betting activities under any form;  lotteries in any form;

2. Providing false information or advertisements about the content and scope of operations of the Lottery Company; rules for participating in 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 Company.

CHAPTER III. VIOLATIONS AND PENALTIES:

Article 14. Violations in lottery agency activities include:

1. Overdue payment for lottery ticket sales beyond the time specified in the contract;

2. Violation of the market for lottery ticket sales;

3. Selling lottery tickets to participants at a price exceeding the face value indicated 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 betting activities such as running betting operations, recording bets, buying numbers, or selling betting slips;

7. Failure to comply with the provisions of this regulation;  

Article 15.  Handling Violations:

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

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

2. Compensation for material losses;

3. Administrative fines or criminal prosecution according to current laws of the State.

CHAPTER IV. IMPLEMENTATION PROVISIONS

Article 16. Effectiveness and Responsibility for Implementation

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

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

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