Decision No. 207 TC/QĐ/TCNH on issuing temporary regulations for pilot issuance of Lotto lottery

Pursuant to …;

REGARDING THE ADOPTION OF PROVISIONS ON TEMPORARY ORGANIZATION AND ISSUE OF LOTTO LOTTERY TRIAL

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

Implementing the Prime Minister's directive allowing the trial of the "Lotto" lottery type (Office of the Government Circular No. 3296/KTTH dated July 6, 1993);

At the request of the Director of the Department of Finance of Banks and Financial Organizations.

Article 1The accompanying provisions on temporary organization and issue of the "Lotto" lottery trial are hereby adopted for application to provinces and cities permitted to issue according to the decision of the Minister of Finance.

Article 2These provisions shall take effect from the date of signature. All previous regulations contrary to these provisions are abolished.

The Directors of the Department of Finance of Banks and Financial Organizations, the General Directors of the State Capital and Asset Management Agency at Enterprises, the General Director of the Tax General Department, the Head of the Office, Heads of relevant units under the Ministry, Directors of Provincial Departments of Finance and Prices, and Directors of Lottery Companies permitted to issue the "Lotto" lottery trial are responsible for implementing this decision./.

"Lotto" lottery is a type of state construction lottery where buyers have the right to choose their favorite numbers and there is a regular draw for prizes. To ensure compliance with national regulations on unified management of lottery issuance and current laws, contributing to additional revenue for the State budget and limiting gambling and lottery fraud in society. After a period of pilot issuance and consultation with provinces and cities, the Ministry of Finance has issued temporary provisions on the organization and management of the "Lotto" lottery issuance for pilot areas to implement.

I. GENERAL PROVISIONS

These "Lotto" lottery issuance provisions will be implemented on a trial basis in provinces and cities permitted to issue according to the decision of the Minister of Finance.

The issuance of "Lotto" lottery must ensure compliance with national regulations on unified management of lottery issuance, current laws, and provisions in these regulations.

II. SPECIFIC PROVISIONS ON LOTTO LOTTERY ISSUANCE AND MANAGEMENT

1. Organization of Issuance

a/ Lotto lottery tickets: Lottery companies are responsible for printing and managing Lotto lottery tickets. Lotto lottery tickets must meet the following requirements:

- The ticket must have a stub or retention part.

- Simple form, convenient, containing all necessary information for players when purchasing tickets and sufficient elements for management purposes.

- On the back of the ticket, in addition to general instructions, it must clearly state that "the company is not responsible for prize payments due to errors or mistakes in recording on the ticket that do not comply with regulations."

b/ Organization of Issuance

Lottery companies are responsible for organizing the issuance of Lotto lottery tickets according to the following regulations:

- Lotto lottery can be issued concurrently with other types of lotteries.

- The number of tickets issued per round is determined by the lottery company based on market demand and the management capacity of each company.

- The scope of issuance is limited within the administrative area of the locality.

- Lotto lottery tickets include various denominations ranging from 500 dong to 5,000 dong per play. In cases where tickets apply to multiple plays, the total value recorded on each ticket must not exceed 22,000 dong.

- To be simple, easy to play, and suitable for public preferences, Lotto lottery tickets must be designed separately for each game (2 digits, 3 digits, 4 digits, and multi-draw comparison games), with clear color differentiation to facilitate selection and control by buyers. (For multi-draw tickets, the number of draws must be clearly stated on the ticket).

- When issuing Lotto lottery, the lottery company must announce on major communication channels and sales counters. Announcements must include all details of the rules such as: how to play, how to record by agents, how to compare results, prize levels, claim locations, and claim deadlines.

- Organizing the draw: Lottery companies may conduct separate draws for each type of Lotto lottery ticket or use the results of regular state construction lottery draws to announce the winning results for each type of Lotto lottery ticket (2 digits, 3 digits, 4 digits, 5 digits, and multi-draw comparison games).

II. Management Organization:

a/ Compliance with national regulations on unified management of lottery issuance, current laws, and specific provisions below:

- The average prize payout structure should not exceed 60% of the issuance revenue.

- Issue costs (including agent commissions) should not exceed 18% of ticket sales revenue for plains and cities, and 22% for mountainous and Central Highlands provinces.

- Regarding taxes, lottery companies must comply with current tax laws. As "Lotto" is a new type of lottery with unique characteristics, the Ministry of Finance will provide guidance based on current tax laws during the trial period.

- Strictly adhere to Directive No. 2036 TC/CĐTC dated October 31, 1992 of the Minister of Finance regarding the rectification of lottery operations.

b/ Organize and strictly manage the network of agents:

Agents selling Lotto lottery tickets must be carefully selected and meet the following requirements:

- Proficient in specialized skills (promotion, recording, selling...).

- Adhere to the agent regulations and specific provisions of the lottery company.

- Agents must deposit money to purchase tickets or provide cash collateral or collateral in the form of valuable certificates (bonds, promissory notes...) equivalent to the value of the tickets received minus commission.

- Agents must sign economic contracts with the lottery company and clearly define the material responsibilities between both parties.

- Violating agents must be dealt with resolutely:

+ Failure to comply with agent regulations and economic contracts.

+ Intentional fraud, taking advantage, or collusion to rotate tickets for embezzlement.

+ Selling tickets or recording incorrectly as per regulations.

Violations that must result in a temporary or permanent prohibition from selling lottery tickets shall not be allowed to act as agents for selling lottery tickets. If material damage is caused, compensation must be provided or criminal prosecution may be initiated according to criminal law.

c/ Organization to recover stubs or retained portions and withdraw winning stubs or retained portions:

- The recovery of stubs or retained portions and withdrawal of winning stubs or retained portions must be strictly organized and managed with the oversight of the Supervisory Witness Council established by the People's Committee of the province or city in accordance with the regulations of the Ministry of Finance.

The Council is responsible for witnessing and supervising:

+ The record confirming sales volume, sealing of stubs or retained portions.

+ Cross-checking the list and stubs of the agent.

+ When there are results from the draw, the Supervisory Council will conduct the opening of seals to determine the winning numbers, prepare records of the prize amounts to be paid.

The recovery of stubs or retained portions and withdrawal of winning stubs or retained portions must ensure the following principles:

+ Recovery of stubs or retained portions must be completed before the draw time; the person recovering the stubs or retained portions must prepare a list, sign it, and bear full responsibility for any errors in the recovery process.

+ Withdrawal of winning stubs or retained portions should follow the order of completion by each agent; seal them separately for each agent, prepare a detailed analysis list of the number of stubs and retained portions for each type of prize.

During the performance of their duties, relevant staff must ensure compliance with their functions, responsibilities, and authorities as stipulated by the Lottery Company.

Any violations affecting the organization of lottery "Lotto" issuance and causing material damage must compensate for the material damage and, depending on the severity, disciplinary administrative measures may be proposed or criminal prosecution may be initiated.

III. IMPLEMENTATION

1. Conditions for Issuing Lottery "Lotto"

Companies requesting to issue lottery "Lotto" must submit a letter and proposal (with comments from the Department of Finance and Prices and the Provincial People's Committee) to the Ministry of Finance for review. After obtaining the Ministry of Finance's decision to allow pilot issuance, the companies must report to the Department of Finance and Prices and the Provincial People's Committee to obtain permission to implement.

The proposal for issuing lottery "Lotto" must ensure the following main contents:

- Annual issuance plan divided by quarter and month.

- Organization and management of the network of agents.

- Organization of promotional and advertising activities.

- Economic and social benefits.

- Measures for organizing management and combating illegal lotteries.

2. Pilot issuance of lottery "Lotto" must be carried out according to the prescribed procedures:

- Effective publicity, advertising, and explanation to the public about the purpose and significance of issuing lottery "Lotto".

- Adequate preparation of necessary conditions for issuing lottery "Lotto" (network of agents, Supervisory Witness Council, assistants...and specific regulations for lottery ticket selling agents including conditions, responsibilities, rights, and benefits).

- Conduct pilot issuance to accumulate experience, gradually expanding the issuance area.

- Monthly, quarterly, and annual summaries and regular inspections must be conducted to promptly correct deviations and supplement management measures to ensure high economic and social effectiveness in lottery "Lotto" issuance, minimizing negative impacts.

- Simultaneously during the pilot phase, coordinate with relevant agencies to implement crackdowns on illegal lotteries according to Circular No. 43/TTLB dated May 8, 1994 issued jointly by the Ministry of Finance and the Ministry of Home Affairs.

3. Accounting work.

- All activities related to the issuance of lottery "Lotto" must maintain separate books and vouchers and apply accounts similar to those for periodic lotteries, ensuring compliance with current state accounting and statistical laws.

- Regularly report quickly (every ten days, monthly) and periodically every quarter to the Ministry of Finance according to the prescribed forms.

- All business results from the issuance of lottery "Lotto" are considered primary business like periodic lotteries.

4. Companies are subject to inspection by the Department of Finance, Provincial People's Committee, and the Ministry of Finance and must comply with this regulation. Any company violating this regulation will have its lottery "Lotto" issuance license revoked by the Ministry of Finance and will be held accountable under the law.

5. If a locality has low efficiency in piloting lottery "Lotto", incurs losses, and cannot overcome these issues and sustain the pilot issuance, the company must submit a document to the Provincial People's Committee, the Department of Finance and Prices, and the Ministry of Finance requesting cessation of operations.

- When ceasing operations, the company must comply with the following regulations:

+ Prepare a final settlement of the lottery "Lotto" operation from the issuance date to the cessation date for approval by the Department of Finance and Prices.

+ Analyze the reasons leading to losses.

+ Losses due to external factors are recorded together with the profits generated by other types of lotteries and taxed according to the law. In cases where the losses are too large, after using the profits from other types of lotteries to offset the losses and still having remaining losses, these losses will be carried over to the next year.

- The Provincial People's Committee is the authority to decide on ceasing the issuance of lottery "Lotto".

IV. EFFECTIVE DATE

This regulation takes effect from the date of signature. Previous regulations inconsistent with this regulation are abolished.

During implementation, if any difficulties arise, companies must promptly report to the Ministry of Finance and the Provincial People's Committee for timely research and resolution./.

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