Circular No. 44/2009/TT-BTC guiding the issuance of lottery tickets for the State-owned Joint Stock Company One Member Capital Corporation Lottery of Hanoi

CIRCULAR

Guidelines for the issuance of lottery tickets by the State-owned Joint Stock Company for Capital Construction Lottery

State member Lottery Lottery Construction Capital

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Pursuant to Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance hereby issues guidelines for the issuance of lottery tickets by the State-owned Joint Stock Company for Capital Construction Lottery (hereinafter referred to as the Capital Construction Lottery Company) as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope and Objectives

These Circulars guide the issuance of lottery tickets by the State-owned Joint Stock Company for Capital Construction Lottery (referred to as the Capital Construction Lottery Company) within the territory of Hanoi City.

2. Explanation of terms

In this Circular, the following terms shall be understood as follows:

a) Lottery ticket issuance through electronic machines is a type of self-selected lottery that allows the buyer or seller (upon the buyer's request) to select a set of digits to participate in the prize draw according to the rules of participation for each type of product announced by the Capital Construction Lottery Company.

b) Ticket-selling machine is a specialized electronic device used to record the digits participating in the prize draw; to conduct two-way information exchange with the main server and print tickets for participants in the lottery draw.

c) Main server is an electronic device used to store and process information from customers participating in the lottery draw.

d) Lottery ticket is a document issued and delivered by the Capital Construction Lottery Company to customers, confirming the rights and obligations of the parties involved when participating in the lottery draw.

e) Fixed prize payout method is a method of awarding prizes where the value of the prize awarded to the customer is predetermined by a specific amount of money or by a certain number of times (calculated using arithmetic progression) compared to the amount of money the customer has participated in the prize draw.

f) Variable prize payout method is a method of awarding prizes where the value of the prize awarded to the customer is calculated based on a percentage (%) of the actual sales revenue of lottery tickets in each issuance period by the Capital Construction Lottery Company.

g) Planned prize payout ratio is the percentage (%) between the total value of all prize categories and the total value of lottery tickets expected to be issued in each drawing period.

II. SPECIFIC PROVISIONS

1. Lottery products

Lottery tickets issued by the Capital Construction Lottery Company include the following types of products:

a) Lottery 1-2-3: A type of product allowing the buyer to choose three numbers, including: one single digit from 0 to 9; one double-digit from 00 to 99; one triple-digit from 000 to 999 to participate in the prize draw.

b) Lucky God 4: A type of product allowing the buyer to choose one four-digit number, from 0000 to 9999 to participate in the prize draw.

c) Lottery 6/36: A type of product allowing the buyer to choose six numbers out of thirty-six digits, from 01 to 36 to participate in the prize draw.

d) Other lottery products approved by the Ministry of Finance.

2. Participants in the prize draw

Participants in the lottery draw are Vietnamese citizens residing in Vietnam, Vietnamese citizens residing abroad who enter Vietnam legally, and foreigners entering Vietnam legally.

Participants in the lottery draw must meet the following conditions:

a) Must be at least eighteen years old.

b) Not be a person restricted in civil capacity or deprived of civil capacity under the provisions of the law.

3. Selection number entry card

a) The selection number entry card is printed by the Capital Construction Lottery Company or contracted out for printing and distributed free of charge to customers for the following purposes:

- To select the digits participating in the prize draw or to notify acceptance of the automatic selection of numbers by the ticket-selling machine and hand over to the seller to enter data into the ticket-selling machine.

- To compare and check the accuracy between the lottery ticket handed over by the seller to the customer and the digits chosen by the customer.

b) The selection number entry card does not have the value to claim prizes.

c) The selection number entry card must meet the following requirements:

- Clearly printed with all necessary information to serve the participation in the prize draw by customers.

- Detailed instructions on how to mark selected digits and correct errors during the selection process to participate in the prize draw.

4. Lottery ticket

a) The lottery ticket issued by the Capital Construction Lottery Company through ticket-selling machines is given to customers when participating in the prize draw. The lottery ticket must contain the following contents:

- Name of the issuing company (Capital Construction Lottery Company);

- Type of lottery product participating in the prize draw;

- Selected numbers to participate in the prize draw;

- Participation value;

- Date and time of ticket issuance;

- Drawing date;

- Symbol of the selling agent or ticket-selling machine;

- Ticket identification code and barcode to prevent counterfeiting.

b) Purchased lottery tickets can be exchanged or refunded at the same selling point within twenty minutes from the time of purchase and only up to thirty minutes before the drawing time. Beyond this deadline, tickets cannot be exchanged or refunded.

5. Unit of participation in the prize draw

The unit for one participation in the lottery draw is five thousand Vietnamese dong (VND 5,000). In case the customer selects a number to participate multiple times or chooses multiple numbers to participate simultaneously, the total participation value will be a multiple of five thousand Vietnamese dong.

6. Prize payout ratio and prize structure

a) The planned prize payout ratio applied to various types of lottery products is a maximum of sixty percent (60%) of the total value of lottery tickets expected to be issued in each drawing period.

b) The number of prize categories and the structure of each category are determined by the Capital Construction Lottery Company in accordance with the prize payout method stipulated in Clause 7, Section II of these Circulars.

7. Prize payout methods

The prize payout methods applied to various types of lottery products are as follows:

a) Lottery 1-2-3: Applied using the fixed prize payout method.

b) Lucky God 4: Applied using the fixed prize payout method.

c) Lottery 6/36: Combined application of the variable prize payout method with the fixed prize payout method, wherein:

- Special prize: The awarding method shall be variable; the value of the special prize is set from 30% to 40% of the actual revenue from ticket sales for each issuance period. Specifically, the special prize for the first issuance period (after a customer wins a prize) is fixed at 1,500,000,000 VND (one billion five hundred million VND).

In each issuance period, if there is no customer winning the special prize, the value of the special prize will be transferred to the next draw period but not exceeding 6,000,000,000 VND (six billion VND). Any amount exceeding 6,000,000,000 VND (if any) shall be handled according to the provisions of Clause 23, Section II of this Circular.

If multiple customers win the special prize simultaneously, the value of the special prize will be divided among the corresponding customers based on the amount they participated in the draw.

- Prizes below the special prize category: The awarding method shall be fixed.

8. Lottery ticket issuance time

a) Lottery tickets are issued daily, except for certain holidays, Tet, and other special cases as announced by the Hanoi Lottery Company.

The Hanoi Lottery Company is responsible for publicly announcing the non-issuance days for lottery participants to know at least seven days before the non-issuance day.

b) During each issuance period, the sale of tickets must end no later than ten minutes before the draw time.

9. Rules for participating in the lottery draw

The Hanoi Lottery Company must establish and publicly announce the rules for participating in the draw so that participants are aware when participating. The rules for participating in the draw include the following main contents:

a) Conditions for participation.

b) Methods of participation.

c) Number of prize categories, prize structure.

d) Method of determining the winning results.

đ) Time and place of ticket issuance.

e) Draw date and time during the week.

g) Responsibilities and benefits of the Hanoi Lottery Company and lottery participants.

10. Lottery agents

a) The conditions for lottery agents are applied according to the provisions of Item 1.9.1, Point 1.9, Clause 1, Section II of Circular No. 65/2007/TT-BTC dated June 18, 2007, of the Ministry of Finance guiding detailed implementation of Decree No. 30/2007/NĐ-CP dated March 1, 2007, of the Government on lottery business and the following additional conditions:

- Agents must have a stable business location in Hanoi; have sufficient floor area and other necessary conditions to install lottery ticket selling machines.

- Ticket sellers must have proficient skills in operating lottery ticket selling machines provided by the Hanoi Lottery Company.

The Hanoi Lottery Company is responsible for guiding and training the operation of lottery ticket selling machines for lottery agents.

b) The agreement on becoming a lottery agent between the Hanoi Lottery Company and organizations or individuals acting as agents must be established in writing, clearly stipulating the responsibilities and authorities of both parties.

c) Lottery agents are responsible for fulfilling tax obligations to the State in accordance with the law.

11. Ensuring payment obligations and payment of ticket sales proceeds by agents

a) Ensuring payment obligations:

- The application of measures to ensure payment obligations of lottery agents to the Hanoi Lottery Company is implemented according to the provisions of Article 13 of Decree No. 30/2007/NĐ-CP dated March 1, 2007, of the Government on lottery business and current civil law regulations.

- The level of payment obligation guarantee of lottery agents to the Hanoi Lottery Company is determined at a minimum of 85% of the average actual revenue from ticket sales in one week of the month immediately preceding the month of ticket sales.

b) Payment of ticket sales proceeds by agents:

- The payment of lottery ticket sales proceeds by agents is carried out weekly. Regularly, no later than three working days after the end of the week, lottery agents must complete procedures to pay the ticket sales proceeds of the previous week to the Hanoi Lottery Company.

- In case agents delay payment beyond the specified period, the Hanoi Lottery Company may take necessary measures to recover ticket sales proceeds according to civil law regulations and may consider terminating the ticket sales contracts with agents.

12. Information disclosure, advertising, and promotions for lottery

The system of information disclosure, advertising, and promotions for lottery is applied according to the provisions of Clause 6, Section II of Circular No. 65/2007/TT-BTC dated June 18, 2007, of the Ministry of Finance guiding detailed implementation of Decree No. 30/2007/NĐ-CP dated March 1, 2007, of the Government on lottery business.

13. Lottery draw schedule

a) Lottery 1-2-3 and Fortune God 4 are drawn daily.

b) Lottery 6/36 is drawn twice a week.

Specific draw date and time are announced by the Hanoi Lottery Company in the Participation Rules and Draw Rules.

14. Organization of lottery draws

a) The organization of lottery draws is applied according to the provisions from Point 2.2 to Point 2.7, Clause 2, Section II of Circular No. 65/2007/TT-BTC dated June 18, 2007, of the Ministry of Finance guiding detailed implementation of Decree No. 30/2007/NĐ-CP dated March 1, 2007, of the Government on lottery business.

b) In case the number drawing cannot be conducted according to the announced schedule, customers' tickets will automatically be transferred to the next draw or customers will be refunded their participation fees by the Hanoi Lottery Company if requested.

15. Lottery Supervisory Board

a) The establishment of the Lottery Supervisory Board (including electronic lottery) and the responsibilities and authorities of the Lottery Supervisory Board are implemented according to the provisions of Circular No. 74/2007/TT-BTC dated July 4, 2007, of the Ministry of Finance guiding the composition, tasks, and authorities of the Lottery Supervisory Board.

b) In addition to the provisions of Circular 74/2007/TT-BTC, some specific provisions are applied as supplements for electronic lottery as follows:

- Five minutes before the draw time, representatives of the Lottery Supervisory Board must lock the main machine with a password set by the Lottery Supervisory Board and check the ticket-selling system to ensure that all ticket-selling machines cannot issue tickets immediately after this time.

- Inspect and supervise the consolidation of revenue data from ticket sales during the period of the Capital Lottery Company. Based on this, the lottery oversight board shall sign a record confirming the results of the lottery draw period and determining the value of prizes to be paid to winning customers (for variable prize payouts based on revenue).

- The lottery oversight board has the right to require the Capital Lottery Company to stop the number drawing for prize distribution in the following cases:

+ The system is continuously out of operation for six hours (for the 1-2-3 and Shentai 4 lottery products) and thirty-six hours (for the 6/36 lottery product).

+ The system cannot close the issuance of tickets before the scheduled time for the number drawing.

+ There is evidence that the operation of the lottery system is inaccurate, affecting the fairness among participants.

16. Prize Payment

The implementation of prize payments to winning customers for lottery draws shall be carried out in accordance with Clause 3, Section II of Circular No. 65/2007/TT-BTC dated June 18, 2007, issued by the Ministry of Finance detailing Decree No. 30/2007/NĐ-CP dated March 1, 2007, of the Government regarding lottery business operations.

17. Management, Storage, and Destruction of Winning Tickets

Winning tickets must be punched and stamped after prize payment to ensure they cannot be used fraudulently for claiming prizes. The management, storage, and destruction procedures for winning tickets, including the retention period for winning tickets, shall be implemented in accordance with the Accounting Law and Decree No. 129/2004/NĐ-CP dated May 31, 2004, of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable to business activities.

18. Conditions for the Lottery System

a) Conditions for Equipment (servers, lottery ticket vending machines):

- Clear origin and source; legally imported into Vietnam (in the case of imports from abroad).

- Installed according to technical specifications and manufacturer's instructions; ensuring safe and stable operation.

- Must have a backup server operating concurrently with the main server to back up customer participation data.

b) Conditions for Lottery System Software:

- Must be legally permitted software.

- Designed in compliance with state regulations and rules for participating in each type of lottery product.

- Timely and accurately records customer participation data; calculates and determines revenue, prize values, checks winning ticket parameters,... In the case of automatic number selection, the software must ensure complete randomness.

- High security, preventing external intrusion or interference that could alter participation data and other data serving lottery business operations.

19. Data Transmission for Lottery Systems

a) Data transmission for lottery systems is leased by the Capital Lottery Company from units authorized to provide service transmission legally operating in Vietnam.

b) Data transmission for lottery systems must be highly stable, with sufficient bandwidth and speed to meet the requirements for timely information exchange and processing between servers and ticket vending machines.

c) Selection of service providers must ensure cost-effectiveness while clearly defining the responsibilities and rights of all parties involved (including responsibility for technical issues caused by both subjective and objective reasons).

20. Operation of the Lottery System

a) The Capital Lottery Company is responsible for organizing and managing the lottery system operation. Agents who enter into contracts with the Capital Lottery Company operate lottery ticket vending machines according to the company's guidelines and are responsible for the equipment under their management as stipulated in the contract.

b) Monthly, the lottery system (servers, vending machines, and other synchronized devices) must be inspected and maintained to ensure safe and accurate operation.

c) The Capital Lottery Company arranges personnel and establishes a dedicated hotline to guide, answer queries, and promptly address technical issues during system operation.

21. Management and Utilization of Data from Lottery System Servers

a) The Capital Lottery Company is responsible for issuing regulations on the management and utilization of data from servers to support its business activities. Server data must meet authenticity and accuracy requirements.

b) The Ministry of Finance, the lottery oversight board, tax authorities, and other competent government agencies have the right to access and request the Capital Lottery Company to provide server data for management and supervision purposes.

c) Annual lottery business data must be stored for at least two years from the end of the fiscal year. Necessary data must be extracted and printed as financial documents to serve the company's financial management and accounting in accordance with prescribed regulations.

22. Revenue and Expense Management

Revenue and expense management for lottery business operations shall be carried out in accordance with Circular No. 112/2007/TT-BTC dated September 19, 2007, issued by the Ministry of Finance detailing financial management regulations for lottery companies and the following specific provisions:

a) Provision for Prize Payment Risk:

- The Capital Lottery Company may establish a provision for prize payment risk for the 1-2-3 and Shentai 4 lottery products. The conditions for establishing, timing, amount, and use of the prize payment risk reserve fund shall be applied in accordance with Circular No. 112/2007/TT-BTC dated September 19, 2007, of the Ministry of Finance. The planned payout ratio for determining the conditions for establishing the prize payment risk reserve fund for the 1-2-3 and Shentai 4 lotteries is 60%.

- No provision for prize payment risk shall be established for the 6/36 lottery product.

b) Revenue and Expense Management:

- The Hanoi Lottery Company has the responsibility to organize separate accounting for revenue and expenses of the lottery electronic business operations.

- The maximum level of commission paid to agents for the type of electronic lottery shall not exceed 8% of annual ticket sales revenue including tax.

23. Handling of cumulative special prize value exceeding the prescribed limit

The difference between the cumulative special prize value and the maximum allowable amount (6,000,000,000 VND) for the 6/36 electronic lottery form as stipulated in Clause 7, Section II of this Circular shall be recorded as income of the Hanoi Lottery Company.

III. IMPLEMENTATION

1. This Circular takes effect 45 days from the date of signature and revokes Decision No. 4114/QD-UBND dated October 15, 2007 of the People's Committee of Hanoi City on the issuance of the temporary regulations for the issuance of electronic lottery within the territory of Hanoi City.

2. The Hanoi Lottery Company is responsible for issuing relevant management procedures, and organizing the management and operation of the electronic lottery system to ensure safety, accuracy, economy, effectiveness, and compliance with all state regulations in the organization and operation of electronic lottery business.

3. During the implementation process, if there are difficulties or obstacles, the Hanoi Lottery Company and related units shall promptly report to the Ministry of Finance for consideration and specific guidance.

4. Any amendments or supplements to this Circular shall be decided by the Minister of Finance./.