Circular No. 75/2013/TT-BTC detailing the operation of lottery business activities.

CIRCULAR

Detailed guidance on lottery business activities

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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;

Pursuant to Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business and Decree No. 78/2012/NĐ-CP dated October 5, 2012 of the Government amending and supplementing certain articles of Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance issues this Circular providing detailed guidance on lottery business activities:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides detailed guidance on certain aspects of managing lottery business activities as prescribed in Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business and Decree No. 78/2012/NĐ-CP dated October 5, 2012 of the Government amending and supplementing certain articles of Decree No. 30/2007/NĐ-CP of the Government on lottery business (hereinafter referred to as Decree No. 30/2007/NĐ-CP and Decree No. 78/2012/NĐ-CP).

Article 2. Applicability

1. A limited liability company for lotteries established by the People's Committee of a province or centrally governed city as the owner (hereinafter referred to as lottery company).

2. A limited liability company for Vietnam Lottery (hereinafter referred to as Vietnam Lottery Company).

3. The owner of the lottery company, Vietnam Lottery Company.

4. Relevant organizations and individuals.

Article 3. Explanation of Terms

In addition to the terms defined in Article 2 of Decree No. 30/2007/NĐ-CP, some terms in this Circular are understood as follows:

1. "Traditional five-digit lottery" refers to a traditional lottery type with five pre-printed digits on each ticket ranging from number 00.000 to number 99.999 in each series issued.

2. "Traditional six-digit lottery" refers to a traditional lottery type with six pre-printed digits on each ticket ranging from number 000.000 to number 999.999 in each series issued.

3. "Lotto lottery" refers to a lottery type where participants have the right to choose their own digits to participate in the draw, and the winning results are determined after the issuance of the lottery tickets.

4. "Self-selected two-digit lotto lottery" refers to a lottery type where participants have the right to select two digits from 00 to 99.

5. "Self-selected three-digit lotto lottery" refers to a lottery type where participants have the right to select three digits from 000 to 999.

6. "Self-selected four-digit lotto lottery" refers to a lottery type where participants have the right to select four digits from 0000 to 9999.

7. "Self-selected pair-number lotto lottery" refers to a lottery type where participants have the right to select two, three, or four pairs of digits from 00 to 99.

8. "Scratch-off lottery revealing immediate results" refers to a lottery type where the draw is conducted beforehand using random software to allocate prizes. Winning results are pre-printed on the ticket and covered. After purchasing the ticket, participants remove the covering layer at designated areas to reveal whether they have won or not.

9. "Peel-off lottery revealing immediate results" refers to a lottery type where the draw is conducted beforehand through a random number generator. After purchasing the ticket, buyers peel, tear, or use other methods to open the ticket and compare the printed numbers on the ticket with the announced lottery results to determine if they have won or not.

10. "Debt period" refers to the time frame within which lottery agents must complete payment for sold tickets to the lottery company from each batch of tickets received, starting from the date the tickets were officially issued.

11. "Lottery agent" refers to organizations or individuals meeting the legal requirements stipulated in this Circular who directly sign a lottery agency contract with the lottery company to distribute tickets, sell tickets, and pay winnings to customers according to the terms of the lottery agency contract.

12. "Joint issuance mechanism" refers to the mechanism of issuing lottery tickets whereby lottery companies in the same region jointly issue a unified set of tickets throughout the entire regional area with a consistent prize structure, conduct joint draws, and share all prize costs and printing costs according to the operational regulations of the Regional Lottery Council approved by the Ministry of Finance.

13. "Common market mechanism" refers to the mechanism of issuing lottery tickets whereby each lottery company in the same region independently issues and sells tickets throughout its regional area according to the draw schedule prescribed by the Ministry of Finance. Each lottery company is responsible for the entire process of issuing, conducting draws, and paying out winnings.

14. "Lottery ticket issuing organization" refers to lottery companies or the Regional Lottery Council (in cases of joint issuance) that meet the conditions for issuing lottery tickets as stipulated in this Circular.

Article 4. Activities of the Regional Lottery Council

a) The Northern region, including the following provinces and centrally governed cities: Bac Giang, Bac Kan, Bac Ninh, Cao Bang, Dien Bien, Ha Giang, Ha Nam, Hanoi, Ha Tinh, Hai Duong, Hai Phong, Hung Yen, Hoa Binh, Lao Cai, Lang Son, Lai Chau, Nam Dinh, Nghe An, Ninh Binh, Phu Tho, Quang Ninh, Son La, Thai Binh, Thai Nguyen, Thanh Hoa, Tuyen Quang, Vinh Phuc and Yen Bai;

b) The Central region, including the following provinces and centrally governed cities: Binh Dinh, Da Nang, Dak Lak, Dak Nong, Gia Lai, Khanh Hoa, Kon Tum, Ninh Thuan, Phu Yen, Quang Binh, Quang Nam, Quang Ngai, Quang Tri and Thua Thien-Hue;

c) The Southern region, including the following provinces and centrally governed cities: An Giang, Bac Lieu, Ba Ria-Vung Tau, Ben Tre, Binh Duong, Binh Phuoc, Binh Thuan, Ca Mau, Can Tho, Dong Thap, Dong Nai, Hau Giang, Kien Giang, Lam Dong, Long An, Soc Trang, Tay Ninh, Ho Chi Minh City, Tien Giang, Tra Vinh and Vinh Long.

2. Lottery companies within the same region as prescribed in Clause 1 of this Article shall establish a Regional Lottery Council. The Regional Lottery Council operates in accordance with the laws on lottery business and its operational regulations. The operational regulations of the Regional Lottery Council are adopted by the Council's vote and approved by the Ministry of Finance.

3. The Vietnam Lottery Corporation participates in the Regional Lottery Councils of the Northern, Central, and Southern regions but does not have voting rights over the business activities of the types and products of lotteries specified in Article 6 of this Circular.

Article 5. Issuing lottery tickets

1. Lottery companies permitted to issue the types of lottery tickets specified in Article 6 of this Circular. The printing, distribution, and issuance of lottery tickets, organization of prize draws, and supervision of prize draws by lottery companies comply with the provisions of this Circular.

2. The Vietnam Lottery Corporation is permitted to issue electronic lottery tickets according to the regulations of the Ministry of Finance. Products, issuance, distribution, organization of prize draws, and supervision of prize draws for the types of electronic lottery games are carried out in accordance with other Circulars issued by the Ministry of Finance.

3. The issuance, distribution, organization of prize draws, and supervision of prize draws for the permitted electronic lottery products issued by the State Capital Joint Stock Company of Lottery Hanoi are implemented in accordance with Circular No. 44/2009/TT-BTC dated March 10, 2009, of the Ministry of Finance guiding the issuance of electronic lottery tickets by the State Capital Joint Stock Company of Lottery Hanoi and any subsequent amendments, supplements, or replacements (if any).

Chapter II

TYPES OF PRODUCTS, PRIZE RULES, AND PRINTING LOTTERY TICKETS

Article 6. Types and products of issued lotteries

1. For traditional lottery types:

a) Traditional five-digit lottery;

b) Traditional six-digit lottery.

2. For hand-drawn lottery types:

a) Self-selected two-digit hand-drawn lottery;

b) Self-selected three-digit hand-drawn lottery;

c) Self-selected four-digit hand-drawn lottery;

d) Self-selected two-pair hand-drawn lottery;

đ) Self-selected three-pair hand-drawn lottery;

e) Self-selected four-pair hand-drawn lottery.

3. For instant result lottery types:

a) Instant result scratch lottery;

b) Instant result pull-tab lottery.

Article 7. Face value of lottery tickets

1. Traditional lottery tickets have the following face values:

a) 5,000 VND;

b) 10,000 VND;

c) 20,000 VND.

The organization and issuance of traditional lottery tickets with a face value of 20,000 VND shall only be permitted to be implemented for a maximum of four (4) issuance periods during the Lunar New Year each year based on reaching consensus from the Lottery Construction Council and obtaining written approval from the Ministry of Finance.

2. Hand-drawn lottery tickets have the following face values:

a) The face value of hand-drawn lottery tickets specified in Clause 2, Article 6 of this Circular shall not exceed 10,000 VND;

b) In cases where the organization issuing lottery tickets prints hand-drawn lottery tickets for multiple draws, the total value recorded on the ticket shall not exceed 50,000 VND.

3. Scratch-off lottery tickets that reveal results immediately have the following face values:

a) 2,000 VND;

b) 5,000 VND;

c) 10,000 VND.

4. Instant reveal lottery tickets that reveal results immediately have the following face values:

a) 2,000 VND;

b) 5,000 VND;

c) 10,000 VND.

Article 8. Rules for Participating in Lottery Draws

1. Organizations issuing lottery tickets must establish and publicly announce rules for participating in lottery draws for each type of lottery issued. These rules must include the following main contents:

a) Name of the lottery type and product;

b) Name of the organization issuing lottery tickets;

c) Participants in the draw and conditions for participation;

d) Method of participating in the draw;

đ) Method of determining winning results;

e) Number of prizes and prize structure;

g) Responsibilities and rights of participants in the lottery draw;

h) Responsibilities and authorities of the lottery construction company;

i) Conditions for claiming prizes for winning lottery tickets;

k) Recommendations for participants regarding responsible participation in lottery draws, such as: "Participate in buying lottery tickets for the benefit of the country and home," "You cannot get rich from buying lottery tickets,"...

2. Public announcement of the rules for participating in lottery draws shall be carried out through public posting at the headquarters of the lottery construction company, lottery agents, publication on the company's website (if available), distribution of leaflets to agents and customers, or other mass media as prescribed by law.

Article 9. Prize payout ratio and prize structure

1. The prize payout ratio for each type of lottery is stipulated as follows:

a) For traditional lotteries: the maximum prize payout ratio for each issuance period is 50% of the total value of issued lottery tickets;

b) For scratch-off lotteries that reveal results immediately and instant reveal lotteries that reveal results immediately: the maximum prize payout ratio for each issuance period is 55% of the total value of issued lottery tickets;

c) For hand-drawn lotteries: the maximum prize payout ratio is 60% of the anticipated total value of issued lottery tickets.

2. Prize structure:

a) The number of prize categories and the structure of each prize within the total prize value is determined by the organization issuing lottery tickets in accordance with the prescribed payout ratio and agreed upon in the Lottery Construction Council;

b) The value of prizes awarded to customers is determined according to a fixed payout method, including:

- Prizes predetermined by a specific amount;

- Prizes predetermined by a certain number of times (calculated using arithmetic progression) compared to the amount the customer participated in the draw.

c) In cases where the Ministry of Finance stipulates the ratio of the special prize value to the total prize value, the allocation of the special prize value in the prize structure of the organization issuing lottery tickets must comply with the regulations of the Ministry of Finance.

Article 10. Lottery ticket printing organizations

1. Lottery tickets shall be printed by lottery ticket issuing organizations themselves or outsourced to printing facilities that meet the necessary conditions, security requirements, and ensure safety in business operations.

2. Lottery ticket issuing organizations have the right to decide on the form and size of lottery tickets. Lottery tickets must include the following basic contents:

a) Name of the lottery ticket issuing organization;

b) Denomination of the lottery ticket;

c) Serial number of the lottery ticket;

d) Random digits or results for customers to choose from;

đ) Date of draw, circulation period of the lottery ticket; claim period;

e) Prize structure according to the issuance serial number;

g) Identification marks to prevent counterfeiting or control codes to manage lottery tickets;

h) Other information to serve participants in lottery draws including: prize structure, conditions for claiming prizes, claim address, other necessary information as required by the lottery ticket issuing organization.

3. The quantity of lottery tickets issued in each issuance period shall be determined by the lottery ticket issuing organization in accordance with consumption capacity, market demand, management capability, and ensuring business efficiency.

In cases where the Ministry of Finance stipulates limits on the quantity and value of issued lottery tickets or controls the minimum average consumption rate of lottery tickets during specific periods, the printing and issuance of lottery tickets by lottery ticket issuing organizations must comply with the regulations of the Ministry of Finance.

Article 11. Principles of lottery ticket printing

1. Printed lottery tickets must have sufficient quantities according to each type of lottery ticket symbol and match the announced prize structure.

2. The principles of printing lottery tickets for each type of lottery ticket are specified as follows:

a) Traditional lottery tickets when printed must have stubs for the purpose of controlling lottery tickets by the lottery ticket issuing organization;

In cases where printed lottery tickets have reflective identification marks or barcode systems, code systems meeting the requirements for control, management, and differentiation between genuine and counterfeit lottery tickets, the printing organization must ensure strictness, preventing any possibility of fraud, then printing lottery tickets may not require stubs;

b) Lotto lottery tickets when printed must have stubs or retention sections to record and verify the digits chosen by customers to participate in the draw;

c) Scratch-off lottery tickets revealing results immediately must have control codes to verify and determine prizes. The covering material at designated scratch-off areas must ensure that the content inside cannot be seen under normal light intensity or by machine and other devices; it must not peel off or deform under normal conditions;

For the printing of scratch-off lottery tickets revealing results immediately, the printing facility must have specialized equipment and software programs to randomly allocate prizes. The prize allocation software must have a system of control codes to prevent unauthorized access and modification. The entire process of printing prizes must be recorded and stored on dedicated equipment, ensuring absolute confidentiality and only accessible upon written request from the lottery ticket printing company and authorized representatives of the printing facility. Security codes are jointly established and decoded by the lottery ticket printing company and the printing facility to control winning lottery tickets;

d) Instant reveal lottery tickets must ensure that the content inside cannot be seen under normal light intensity or by machine and other devices. Lottery tickets must meet anti-counterfeiting and anti-reuse requirements to prevent multiple sales.

3. In cases where lottery tickets are issued through a regional lottery council mechanism, the selection of printing facilities must be conducted through public bidding. Criteria and procedures for selecting printing facilities are specifically detailed in the operational regulations of the regional lottery council.

4. Printing of lottery tickets must be carried out through economic contracts, which clearly define the quantity of printed lottery tickets; technical requirements for printing lottery tickets; responsibilities and rights of the parties; mechanisms to control the printing process to prevent fraud; dispute resolution, compensation for damages, and other agreements to meet the management requirements of all parties.

5. Lottery ticket issuing organizations are responsible for notifying provincial tax bureaus (where tax obligations are fulfilled) about the name of the printing facility, the symbol of the lottery ticket (serial number of the lottery ticket), the quantity and denomination of each type of lottery ticket in each printing period for monitoring and management.

Chapter III

DISTRIBUTION AND ISSUE OF LOTTERY TICKETS

Article 12. Distribution of lottery tickets

1. The organization issuing lottery tickets shall distribute lottery products in accordance with Article 6 of this Circular to customers through the following methods:

a) Selling directly to customers;

b) Through lottery agent systems as prescribed in this Circular.

2. In addition to the distribution methods for lottery tickets stipulated in Clause 1 of this Article, lottery products specified in Article 6 of this Circular shall not be distributed through the following channels: telephones (landlines, mobiles), electronic devices, the Internet, and other telecommunications means.

Article 13. Territory for Issuing Lottery Tickets

The territory for issuing various types of lottery tickets as stipulated in Article 6 of this Circular is defined as follows:

1. For the Northern region:

a) Traditional lotteries are issued under a joint issuance mechanism. Lottery tickets are consumed within the administrative boundaries of each province and centrally-administered city of each lottery company;

b) Hand-drawn lotto, instant scratch-off lotteries revealing results immediately, and instant peel-off lotteries revealing results immediately are issued and consumed within the administrative boundaries of each province and centrally-administered city of each lottery company.

2. For the Central region:

a) Traditional lotteries, instant scratch-off lotteries revealing results immediately, and instant peel-off lotteries revealing results immediately are issued under a common market mechanism. The draw schedules of lottery companies are regulated by the Ministry of Finance;

b) Hand-drawn lotto is issued and consumed within the administrative boundaries of each province and centrally-administered city of each lottery company.

3. For the Southern region:

a) Traditional lotteries, instant scratch-off lotteries revealing results immediately, and instant peel-off lotteries revealing results immediately are issued under a common market mechanism. The draw schedules of lottery companies are regulated by the Ministry of Finance;

b) Hand-drawn lotto is issued and consumed within the administrative boundaries of each province and centrally-administered city of each lottery company.

Article 14. Participants in Lottery Draws

1. Participants in lottery draws must meet the following conditions:

a) They must be Vietnamese citizens, overseas Vietnamese, or foreigners legally entering Vietnam;

b) Must be at least 18 years old;

c) Shall not be persons restricted in their civil capacity or deprived of their civil capacity according to the provisions of the law.

2. Rights of participants in lottery draws

a) To receive full payment of the value of prizes won in accordance with the rules for participating in lottery draws stipulated in Article 8 of this Circular;

b) To request the lottery company to keep confidential information about winning and claiming prizes;

c) To enjoy other lawful benefits as stipulated in the rules for participating in lottery draws set forth in Article 8 of this Circular.

3. Obligations of participants in lottery draws

a) To comply with the rules for participating in lottery draws stipulated in Article 8 of this Circular and related provisions in this Circular;

b) To properly store purchased lottery tickets to participate in lottery draws in accordance with the rules for participating in lottery draws stipulated in Article 8 of this Circular and the participation rules established by the lottery company;

c) When winning, participants must present the winning ticket and documents proving eligibility to participate in lottery draws as stipulated in Clause 1 of this Article to claim the prize in accordance with this Circular;

d) To fully fulfill tax obligations in accordance with the law on taxation.

Article 15. Term of Circulation of Instant Lottery Tickets

1. The term of circulation of instant lottery tickets shall be as follows:

a) For instant scratch-off lottery tickets: A maximum of 180 days from the date of issuance announcement or the issuance date printed on the lottery ticket;

b) For instant peel-off lottery tickets: A maximum of 90 days from the date of issuance announcement or the issuance date printed on the lottery ticket.

2. The lottery enterprise has the responsibility to publicly announce the term of circulation of instant lottery tickets so that participants purchasing tickets are aware.

Article 16. Lottery Agents

1. Conditions for becoming a lottery agent:

a) For individuals:

- Be a Vietnamese citizen aged eighteen (18) years or older, residing permanently in Vietnam;

- Not being a person with a criminal record or a prior conviction; not being a person whose civil capacity is restricted or lost according to the provisions of the law;

- Not being an employee or management staff working at that lottery enterprise or another lottery enterprise operating in the same regional area;

- Not being the spouse, parent, adopted parent, child, adopted child, sibling, or adopted sibling of the Chairman, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, or accounting supervisor, Auditor, and heads or deputies of business departments of that lottery enterprise or another lottery enterprise operating in the same regional area;

- Meeting the requirements for guaranteeing payment according to the provisions of the law on secured transactions to ensure the fulfillment of payment obligations to the lottery enterprise;

- Having a written commitment to comply fully with all regulations of the lottery enterprise when becoming a lottery agent;

b) For organizations:

- Be an economic organization established and legally operating in Vietnam;

- Not being an economic organization with capital contributions from the Chairman, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, accounting supervisor, Auditor, and heads or deputies of business departments of that lottery enterprise or another lottery enterprise operating in the same regional area;

- Not being an economic organization with capital contributions from the spouse, parent, adopted parent, child, adopted child, sibling, or adopted sibling of the Chairman, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, accounting supervisor, Auditor, and heads or deputies of business departments of that lottery enterprise or another lottery enterprise operating in the same regional area;

- Meeting the requirements for guaranteeing payment according to the provisions of the law on secured transactions to ensure the fulfillment of payment obligations to the lottery enterprise;

- Having a written commitment to comply fully with all regulations of the lottery enterprise when becoming a lottery agent;

2. Based on the conditions stipulated in Clause 1 of this Article, the lottery enterprise shall select organizations and individuals who meet the conditions to become lottery agents. The selection of lottery agents must ensure transparency, fairness, and objectivity.

In cases where multiple organizations and individuals apply to become lottery agents exceeding the needs of the lottery enterprise, the lottery enterprise shall organize a bidding process to select organizations and individuals who meet the conditions, have a distribution network capable of meeting the ticket distribution requirements, and have a low commission rate to become lottery agents.

3. Lottery agents have the responsibility to fulfill tax obligations according to the law.

Article 17. Lottery Agency Contracts

1. Organizations and individuals meeting the conditions stipulated in Article 16 of this Circular, upon being selected as lottery agents, must sign a lottery agency contract with the lottery enterprise.

2. The lottery agency contract drafted by the lottery enterprise must include the following main contents:

a) Name, address, and representative of the parties signing the lottery agency contract;

b) Type of lottery tickets to be sold;

c) Method of distributing permitted lottery tickets;

d) Method and procedures for receiving and returning unsold lottery tickets;

đ) Quantity of lottery tickets to be sold. In cases where the quantity of lottery tickets to be sold is adjusted during each period, the quantity of lottery tickets to be sold will be specified in the contract appendix. The contract appendix is an inseparable part of the lottery agency contract;

e) Commission rate; prize-winning ticket payment fee rate (if applicable);

g) Payment method for lottery ticket sales proceeds, payment time for lottery ticket sales proceeds, and payment terms;

h) Form of guarantee for fulfilling payment obligations;

i) Rights and obligations of the parties signing the contract;

k) Handling of violations and commitments regarding compensation for damages due to breach of contract;

l) Duration of the contract's effectiveness;

m) Other contents serving the management requirements of the lottery enterprise but not conflicting with the provisions of the law.

Article 18. Payment for lottery ticket sales and guarantee of payment obligations of lottery agents

1. Lottery agents must pay in full the amount of money for the lottery tickets received from the lottery enterprise when accepting such tickets.

2. In cases where the lottery enterprise allows lottery agents to owe money for lottery ticket sales, the maximum period of debt for lottery agents shall not exceed the time limit specified in Article 19 of this Circular and must require lottery agents to provide assets to guarantee their payment obligations.

3. The measures to ensure the payment obligations of lottery agents towards the lottery enterprise shall be implemented in accordance with the provisions of Article 13 of Decree No. 30/2007/NĐ-CP and the relevant laws on secured transactions.

4. The level of guarantee for the payment obligations of lottery agents towards the lottery enterprise is specifically defined as follows:

a) For the number of tickets received by lottery agents but not yet due for issuance, the minimum level of guarantee for payment obligations shall be determined as follows:

b) For the number of tickets received by lottery agents and already identified as sold during the period, the guarantee for payment obligations shall be equal to 100% of the total value of the sold lottery tickets minus the commission that the lottery agent is entitled to according to regulations.

5. The procedures for registering secured transactions concerning assets used to guarantee payment obligations shall be carried out in accordance with the laws on secured transactions and registration of secured transactions.

6. The lottery enterprise must evaluate the value of the assets used to guarantee payment obligations at the time of receiving the assets; periodically re-evaluate or conduct re-evaluation at necessary times. For immovable and movable properties, etc., used to guarantee payment obligations but the lottery enterprise lacks the capacity to assess their value, the lottery enterprise may hire organizations with appraisal functions to determine the value of the assets used for payment guarantees. Appraisal costs shall be included in the operating expenses of the lottery enterprise.

The ratio of the guaranteed payment value to the value of the assets agreed upon between the lottery enterprise and the agents must ensure the ability to recover debts in case of contract violations.

Article 19. Period of Debt

1. The period of debt of lottery agents towards the lottery enterprise is specifically defined as follows:

a) For traditional lottery types and lottery types with immediate results: a maximum of 21 days (three weeks) from the date of issuance of the lottery tickets.

b) For lottery types with immediate results upon scratching: lottery agents must complete the payment procedure with the lottery enterprise regarding the amount of money from tickets sold during the period, and simultaneously determine the remaining tickets for continued monitoring and payment in subsequent periods. Based on the circulation period of the lottery tickets as stipulated in Article 15 of this Circular, the lottery enterprise requires lottery agents to complete the payment of the entire amount of lottery tickets received and sold to the lottery enterprise. The debt of lottery agents is determined based on the value of the lottery tickets sold during the period.

2. Based on actual conditions, characteristics of issuance, and the number of draws of traditional lottery types, the lottery enterprise decides specifically about the deadline for completing the payment for purchased lottery tickets by agents, ensuring it does not exceed the aforementioned limit.

3. Upon reaching the payment deadline for purchasing lottery tickets, if lottery agents fail to make payments or make incomplete payments to the lottery enterprise as stipulated in the agency contracts, the lottery enterprise has the right to stop selling lottery tickets to these agents and apply necessary measures to recover the proceeds from lottery ticket sales in accordance with civil law, including: selling collateral assets; auctioning mortgaged assets; recovering or selling pledged assets or security deposits; requesting guarantors to pay the amount they have guaranteed for lottery agents.

Article 20. Recovery of Unsold Lottery Tickets, Ticket Stubs, or Retained Portions of Handwritten Lotto Tickets

1. Organization of Recovery Work

a) The lottery enterprise shall arrange recovery points for unsold lottery tickets (traditional lotteries, instant result lotteries) and ticket stubs or retained portions of handwritten lotto tickets at its headquarters, branches, representative offices, or other suitable locations based on each lottery enterprise's management requirements. The lottery enterprise shall publicly announce the names and addresses of these recovery points to lottery agents.

b) In cases where the lottery enterprise delegates another lottery enterprise to carry out the recovery of lottery tickets, such delegation must be executed in writing after obtaining approval from the Lottery Supervisory Board, specifying clearly the composition, control procedures, monitoring mechanisms, and responsibilities and authorities of the parties involved.

2. Principles of Lottery Ticket Recovery

The lottery enterprise has the responsibility to establish and promulgate regulations on the recovery process of lottery tickets before the draw and recounting of recovered lottery tickets after their recovery. The regulations on the recovery process of lottery tickets must ensure the following principles:

a) The recovery of lottery tickets must be accurate and honest, preventing related parties from exploiting the recovery process for fraudulent prize claims.

b) Compliance with all basic steps as stipulated in Appendices 1, 2, and 3 issued together with this Circular.

c) Clearly defining the responsibilities of each department and individual involved in the recovery process of lottery tickets.

Article 21. Storage of Recovered Tickets After Draw

1. After the draw, the lottery enterprise shall store and preserve the recovered lottery tickets according to the regulations set forth in Article 20 of this Circular in the warehouse.

2. When entering recovered lottery tickets into storage, the lottery enterprise must perform the following tasks:

a) Conduct verification between the actual number of tickets received and the number of recovered tickets listed on the inventory sheet prepared in accordance with the regulations.

b) Lottery tickets stored in the warehouse must meet the requirement of being sealed and packaged separately by date of issuance and draw (for traditional lotteries and handwritten lotto tickets) or by series issuance period (for scratch-off lotteries and instant result lotteries).

3. The minimum retention period for various types of recovered lottery tickets, ticket stubs, or retained portions of recovered lottery tickets specified in Clause 1 of this Article is seven working days from the expiration date of the prize claim period of the lottery ticket. For all lottery tickets of a particular issuance period subject to disputes or complaints during the prize claim period, the lottery enterprise must continue to retain them until a final resolution is reached after the prescribed period.

Article 22. Destruction of Unsold Lottery Tickets After Draw

1. For lottery tickets that have exceeded the retention period as stipulated in Clause 3 of Article 21 of this Circular, the lottery enterprise may organize their destruction.

2. Prior to destroying lottery tickets that have exceeded the retention period, the lottery enterprise must establish a lottery ticket destruction committee consisting of at least three members, including mandatory representatives: the company leadership (chairman of the committee), chief accountant, and warehouse manager.

3. After destroying lottery tickets that have exceeded the retention period, the lottery enterprise must prepare a destruction record with the following main contents:

a) Date, time, and location of the lottery ticket destruction.

b) Participants in the lottery ticket destruction.

c) Type of lottery ticket destroyed (in detail according to the draw date or expiration date of the ticket; recovery date; quantity of destroyed lottery tickets; value of destroyed lottery tickets).

d) Method of lottery ticket destruction.

Chapter IV

ORGANIZATION OF PRIZE DRAWING AND SUPERVISION OF PRIZE DRAWING

Article 23. Lottery Draw Schedule

1. The traditional lottery draw schedule of the lottery company or the Regional Lottery Council shall be regulated by the Ministry of Finance for each period.

2. Hand-drawn lotto is drawn daily. The lottery company may use its own traditional lottery results from that day, hand-drawn lotto results from its own organized number drawing, or traditional lottery results from other lottery companies within the same region on that day. Using the results of another lottery company's traditional lottery to issue hand-drawn lotto must be agreed upon in writing between the parties.

3. The number of draws for instant scratch-off lotteries and instant win lotteries, which reveal results immediately, shall be determined by the lottery company in accordance with ticket consumption demand, management capacity, and business efficiency.

Article 24. Location and Time of Number Drawing

1. The lottery draw shall be conducted at the main office of the lottery company or at another location within the administrative boundaries of the province or city. In cases where the draw is outside the administrative boundaries of the province or city or involves regional collaboration for joint number drawing, it must have the agreement of all lottery companies and written approval from the Ministry of Finance.

2. The specific time for number drawing shall be decided by the lottery ticket issuing organization but must not be later than 18 hours 30 minutes on the drawing date.

Article 25. Number Drawing Equipment

1. Number drawing equipment includes:

a) Ball cage;

b) Balls used for number drawing;

c) Electronic scales to check the weight of each ball; devices to check the size of each ball;

d) Camera and screen systems for monitoring the number drawing process.

2. Management requirements for number drawing equipment:

a) For the ball cages:

- The ball cage must have clear origin, meet the design standards and technical specifications of the manufacturer. Materials used must ensure minimal wear, corrosion, and external impacts;

- In addition to the number of ball cages directly serving each draw according to the announced rules, the lottery company must equip at least one spare ball cage for use when necessary;

- Annually, at least once a year, the lottery company must perform maintenance on the ball cages. Maintenance must ensure the operational principles and technical specifications of the ball cages are not altered. The maintenance process must be recorded in a log;

- The ball cage must be inspected for operation before use. Inspections must be witnessed and confirmed by the Lottery Supervisory Board;

- After each draw, the ball cage or area where it is located must be sealed to prevent external interference;

b) For the balls:

- Balls used for number drawing must have uniform material, weight, and size. Allowable tolerances for each ball used for number drawing are as follows:

+ Regarding weight: Maximum deviation must not exceed 5% of the standard weight of each ball;

+ Regarding size: The maximum deviation must not exceed 5% of the standard diameter of each ball.

- Balls must be arranged in sets (each set contains 10 balls, numbered from 0 to 9); each set of balls is stored in a separate container, ensuring the balls do not rub against each other or wear out. Containers holding the balls must be sealed after each number drawing session;

- The number of sets of balls for each lottery company must be at least twice the actual number of sets used in each draw;

- Every six months, the lottery company must organize inspections of the weight and size of each ball used for number drawing. Balls failing to meet technical standards must be removed. Inspections before using balls for number drawing must be witnessed and confirmed by the Lottery Supervisory Board;

c) For electronic scales and ball size testing devices:

- Electronic scales must be highly accurate, operate stably, and be registered for quality standards with the competent state agency or certified and approved by the standard measurement agency. Devices for checking ball sizes must ensure they can measure allowable deviations in size for each ball;

- Electronic scales and ball size checking devices must be sealed for storage after each use and replaced promptly if they exceed their service life or fail to meet the accuracy requirements for balls used in number drawing;

d) For the camera system and screens for monitoring the drawing process:

Camera systems and screens must be positioned to monitor the entire number drawing process, particularly the selection of balls placed in the cage, the spinning, and retrieval of winning balls. Camera footage must be retained for a minimum of 60 days from the drawing date.

Article 26. Lottery Number Drawers

1. The lottery number drawers shall be selected by the lottery ticket issuing organization to perform the lottery number draw as prescribed.

2. The lottery number drawers must meet the following conditions:

a) Having good morals, clear background, confirmed by the directly managing agency or the local authority where they reside;

b) Not being a person with criminal records or currently under investigation for criminal responsibility;

c) Not being the spouse, parent, adopted parent, child, adopted child, sibling, or adopted sibling of members of the Lottery Supervisory Board.

3. The number of people on the list of lottery number drawers must be at least 1.5 times the actual number of people used to randomly select individuals to participate in the lottery number draw.

Article 27. Rules for Lottery Number Draws

1. The rules for lottery number draws shall be established and publicly announced by the lottery ticket issuing organization for participants to know and monitor. The rules for lottery number draws must include the following main contents:

a) Date, time, and location of the lottery draw;

b) Types of lotteries organized for the draw;

c) Prizes and the order of drawing each prize;

d) Types and operating principles of the ball cages;

đ) Process of lottery draw;

e) Technical standards of the balls used for the lottery number draw (weight, size, allowable tolerance in weight and size);

g) List of authorized representatives of supervising agencies for the lottery number draw.

2. The rules for lottery number draws shall be established for each type of lottery product issued.

3. Public announcement of the rules for lottery number draws shall be carried out through public posting at the headquarters of the lottery company, publication on the company's website (if available), and public announcement at the location of the lottery number draw.

Article 28. Procedure for Lottery Number Draws

1. Preparing for the lottery number draw includes the following tasks:

a) Randomly selecting participants for the lottery number draw;

b) Randomly selecting sets of balls used for the lottery number draw; opening the seals on the sets of balls used for the lottery number draw;

c) Opening the seal on the lottery number draw cage;

d) Mixing the lottery tickets to be opened immediately before the lottery number draw;

đ) Checking other necessary conditions to serve the lottery number draw activities;

2. Conducting the lottery number draw includes the following tasks:

a) Trial lottery number draw: conducting a trial draw for all cages and balls used for the lottery number draw. In case of abnormalities, the cause must be identified to take appropriate measures such as replacing the cage, replacing the balls, or temporarily stopping the lottery number draw;

b) Official drawing: The official drawing is conducted in the order of prize draws as announced in the drawing rules.

3. Confirming the draw results:

The results of the lottery number draw must be recorded in a protocol, with confirmation from the Lottery Supervisory Board regarding the objectivity, honesty, and compliance with the prescribed draw procedures.

4. The entire process of the lottery number draw must be supervised by the Lottery Supervisory Board.

Article 29. Announcing Draw Results

1. The results of each prize category shall be announced immediately upon completion of the draw and compiled to publicly announce the entire draw results when the lottery number draw ends.

2. Based on the protocol confirming the lottery number draw results of the Lottery Supervisory Board, the authorized representative of the lottery company signs the announcement of the lottery draw results as the basis for verification and awarding prizes to customers.

3. The lottery ticket issuing organization is responsible for publicly announcing the lottery draw results immediately after the draw ends. Public announcement of the draw results shall be carried out through public posting at the headquarters of the lottery company, lottery sales agents, publication on the company's website (if available), or other mass media.

Chapter V

PRIZE PAYMENT AND LOTTERY TICKET STORAGE FOR WINNERS

Article 30. Prize Claim Period and Payment Time for Prizes.

1. The prize claim period for lottery tickets that win prizes is thirty days, starting from the day the winning results are determined or from the expiration date of the lottery ticket circulation. Beyond this period, winning lottery tickets will no longer be valid for claiming prizes.

2. The State Lottery Company shall pay out prizes at its headquarters, branches, representative offices, and authorized lottery agents.

3. The payment time for winning lottery tickets by the State Lottery Company to the winners shall not exceed five working days from the date of receiving the prize claim request from customers.

4. In cases where disputes or complaints arise, the payment time may be extended until there is a formal conclusion from the competent state authority.

Article 31. Conditions for Claiming Prizes with Lottery Tickets.

1. The conditions for claiming prizes with lottery tickets must still be intact in shape and size, without being torn apart, patched up, erased, altered, and within the prize claim period as prescribed.

In cases where lottery tickets that win prizes are torn apart due to objective reasons but still have sufficient basis to determine their original shape and authenticity, and are not suspected of fraud, and the tear does not affect the factors determining the win, the State Lottery Company shall organize verification and decide whether to pay out the prize or refuse it to the customer. The decision-making authority is the Chairman, General Director (Director) of the State Lottery Company, which is specifically stipulated in the Participation Rules for Lottery Contests as provided for in Clause 8 of this Circular.

2. Based on the above provisions, the State Lottery Company shall specify in the Participation Rules for Lottery Contests the conditions for claiming prizes, the cases of torn lottery tickets, and the positions of tears to be considered for verification to decide whether to pay out the prize or refuse it to the customer.

Article 32. Confidentiality of Prize Information.

1. Winning customers have the right to request the State Lottery Company to ensure confidentiality of the following information:

a) Name, residential address.

b) Claim time and location.

c) The amount of money and the purpose of using the prize money.

2. In the absence of such a request, the State Lottery Company has the right to publicize information about the winning customer and the prize payout so that lottery contest participants can be informed.

3. The State Lottery Company has the responsibility to provide information about the winning customer to the competent state management authority when requested for management purposes.

Article 33. Delegation of Prize Claiming.

Customers who win prizes but cannot personally participate in claiming the prize due to objective reasons (illness, travel, etc.) may delegate a legally authorized representative to claim the prize. The delegation of prize claiming must be done in writing and confirmed by the local ward or commune authority where the winning customer resides.

Article 34. Delegation of Prize Payment.

1. The State Lottery Company may delegate authorized lottery agents to pay out prizes to winning customers.

2. The delegation of prize payment must meet the following requirements:

a) Based on the capacity of each lottery agent, the State Lottery Company decides the value of the prize to be delegated for payment to each lottery agent;

b) The delegation must be reflected in the agency contract signed between the State Lottery Company and the lottery agent;

c) The delegated agent must bear responsibility for the accuracy and honesty of the winning ticket that has been paid out and must not charge any fees from the winning customer. The agent shall bear legal responsibility if there is a complaint from the customer regarding the collection of fees from the winning customer;

d) The State Lottery Company has the right to inspect lottery agents in the implementation of the delegation of prize payment. If an agent is found to violate the laws and regulations and the contract signed regarding the delegation of prize payment, the State Lottery Company has the right to terminate the delegation of prize payment for that agent.

Article 35. Management of winning lottery tickets

1. Winning lottery tickets must be punched or stamped with a paid mark on the ticket after payment to ensure they cannot be misused for claiming prizes.

2. Winning lottery tickets must be kept together with the stubs of the lottery tickets or the retention portion of the tickets (for types of tickets that require printing of stubs or retention portions) to ensure the requirements for verification and determination of the authenticity of the paid winning lottery tickets are met.

3. The minimum retention period for winning lottery tickets is five years from the date of expiration of the prize payment deadline.

4. The procedures for destroying winning lottery tickets shall be carried out in accordance with the provisions of the Accounting Law and Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain articles of the Accounting Law applicable in business operations and other amending, supplementing, replacing documents (if any).

Chapter VI

LOTTERY BUSINESS ENTERPRISE

Article 36. Business Model and Organizational Structure

The business model and organizational management structure of the lottery construction company, the single-member limited liability company Vietnam Lottery are implemented in accordance with the provisions of Decree No. 30/2007/NĐ-CP and Clause 9, Article 1 of Decree No. 78/2012/NĐ-CP.

Article 37. Conditions and Standards for Leadership Positions

The conditions and standards for leadership positions of the lottery construction company, the single-member limited liability company Vietnam Lottery are stipulated by the owner and recorded in the charter of the lottery construction company's organizational activities but must meet the following basic conditions:

1. For the Chairman of the Company, General Director or Director:

a) They must be Vietnamese citizens residing permanently in Vietnam;

b) Must have full civil capacity as prescribed by law;

c) Have a university degree or higher in one of the fields of economics, finance, banking, economic law, business administration;

d) Have practical experience in managing business operations;

đ) Not belong to the category prohibited from holding managerial positions according to points b, c, đ, e, g, Clause 2, Article 13 of the Enterprise Law;

e) Health, moral standards and other standards prescribed in the charter of the lottery construction company approved by the owner.

2. For the Supervisor:

a) They must be Vietnamese citizens residing permanently in Vietnam;

b) Must have full civil capacity as prescribed by law;

c) Have professional qualifications or work experience in accounting, auditing or professional qualifications and practical experience in lottery business operations of the lottery construction company or other standards and conditions prescribed in the company's charter;

d) Have practical experience in managing business operations;

đ) Not have a spouse, father, adopted father, mother, adopted mother, child, adopted child, brother, sister who hold the position of General Director, Chief Accountant, Supervisor, Cashier at the lottery construction company;

e) Not be related to members of the board of directors, Chairman of the Company, General Director or Director, persons with direct authority to appoint supervisors;

g) Health, moral standards and other standards prescribed in the charter of the lottery construction company approved by the owner.

3. These standards apply to the appointment of management positions in the lottery construction company from the date this Circular takes effect.

Article 38. Lottery Business Qualification Certificate

1. The Ministry of Finance shall issue a lottery business qualification certificate to state-owned lottery companies and Vietnam Lottery Corporation Limited Liability Company.

2. The lottery business qualification certificate shall contain the following main contents:

a) Name and address of the enterprise;

b) Legal representative of the enterprise;

c) Types of products permitted for sale;

d) Product distribution methods;

đ) Lottery sales territory;

e) Validity period of the lottery business qualification certificate;

g) Regulations on compliance with management systems and tax obligations in lottery business activities.

Article 39. Procedures and Formalities for Issuing Lottery Business Qualification Certificates for the First Time

a) A request letter from the lottery company for issuance of a lottery business qualification certificate, specifying the types of products requested to be permitted for sale;

b) Opinion of the owner regarding the issuance of a lottery business qualification certificate;

c) Business operation plan of the lottery company;

d) Decision on establishment of the enterprise (certified copy);

đ) Enterprise registration certificate (certified copy);

e) Corporate charter of the lottery company approved by the owner (copy);

g) Financial report of the lottery company of the most recent year that has been audited.

2. Time limit for issuing a lottery business qualification certificate.

The time limit for issuing a lottery business qualification certificate is fifteen working days from the date the Ministry of Finance receives a complete and valid application dossier as prescribed. In case of refusal to issue a lottery business qualification certificate, the Ministry of Finance shall notify in writing the reasons for refusal.

Article 40. Amendment and Reissue of Lottery Business Qualification Certificates

1. Cases for amending lottery business qualification certificates.

a) Change of name or address of the enterprise;

b) Change of legal representative of the enterprise;

c) Change of types of products permitted for sale;

d) Change of product distribution methods;

đ) Change of lottery sales territory.

2. Cases for reissuing lottery business qualification certificates.

a) Loss, damage, or misplacement of the lottery business qualification certificate;

b) Other reasons preventing the use of the lottery business qualification certificate.

a) A request letter from the lottery company for amendment or reissuance of a lottery business qualification certificate, specifying the reasons for requesting amendment or reissuance of the lottery business qualification certificate;

b) Opinion of the owner regarding the amendment or reissuance of a lottery business qualification certificate;

c) Most recent enterprise registration certificate (certified copy).

4. The time limit for amending or reissuing a lottery business qualification certificate is ten working days from the date the Ministry of Finance receives a complete and valid application dossier.

Article 41. Revocation of Lottery Business Qualification Certificates

1. State-owned lottery companies and Vietnam Lottery Corporation Limited Liability Company shall have their lottery business qualification certificates revoked in the following cases:

a) Dissolution or bankruptcy as provided by law;

b) Implementation of division, separation, merger, or absorption without continuing lottery business operations or having their business registration certificates revoked;

c) Violation in lottery business operations and being penalized with revocation of the lottery business qualification certificate according to laws on administrative penalties in the field of lottery business.

2. The decision to revoke a lottery business qualification certificate shall be announced by the Ministry of Finance through mass media.

Chapter VII

INFORMATION REGIME, PROMOTION, AND VIOLATION HANDLING

Article 42. Information, advertising, and promotions in lottery business activities

1. Information and advertising.

a) The State Lottery Company, the Vietnam National Lottery Joint Stock Company Limited shall implement information and advertising on lotteries in accordance with Articles 18, 19, 20, and 21 of Decree No. 30/2007/ND-CP and current laws.

b) Advertising activities of the State Lottery Companies and the Vietnam National Lottery Company shall focus on the following main contents:

- Social welfare projects funded from lottery revenues;

- Social and charitable activities carried out by the State Lottery Companies;

- Warning players to control their level of participation in lottery draws.

2. Promotions regarding lotteries.

Strictly prohibited for the State Lottery Companies, the Vietnam National Lottery Company, and related organizations and individuals to carry out lottery promotions in the following forms:

a) Reducing the sale price of lottery tickets;

b) Giving away lottery tickets without charge;

c) Giving gifts in the form of physical goods, cash, or shopping vouchers, service usage vouchers for customers to enjoy certain benefits;

d) Increasing the value of prizes compared to the rules of participation and the payout ratio stipulated by the state;

đ) Selling lottery tickets bundled with participation in prize draw programs;

e) Other promotional forms.

Article 43. Handling violations in lottery business activities

1. Violations in lottery business activities, depending on the nature and degree of violation, will be subject to administrative penalties or criminal liability as prescribed by law.

2. Administrative penalty handling in lottery business activities shall be carried out in accordance with the provisions of the law on administrative penalties in the field of lottery business.

Chapter VIII

RESPONSIBILITIES OF ORGANIZATIONS

Article 44. Responsibilities of the Ministry of Finance

1. Inspect the implementation of lottery issuance policies and regulations by State Lottery Companies in accordance with the law and this Circular.

2. Specify the limit on the quantity and value of issued tickets or control the minimum average consumption rate of traditional lottery tickets in each period as stipulated in Article 10 of this Circular.

3. Define the business territory of State Lottery Companies as stipulated in Article 13 of this Circular.

4. Specify the draw schedule for traditional lotteries of State Lottery Companies and Regional Lottery Councils as stipulated in Clause 1, Article 23 of this Circular.

5. Perform other tasks to manage lottery business activities as stipulated in Article 31 of Decree No. 30/2007/ND-CP.

Article 45. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Exercise rights and fulfill obligations of the owner towards the State Lottery Company in accordance with the law.

2. Inspect and supervise the State Lottery business activities in accordance with this Circular and relevant legal documents.

3. Coordinate with the Ministry of Finance to direct relevant departments to guide the State Lottery Company to develop annual revenue collection plans based on the operating principles of the State Lottery business stipulated in Clause 1, Article 1 of Decree No. 78/2012/ND-CP, market development directions for the State Lottery business announced by the Ministry of Finance at each period, and the provisions of this Circular.

Article 46. Responsibilities of the Lottery Construction Company, the Vietnam Limited Liability One Member Lottery Corporation.

1. Comply with all provisions of this Circular and other relevant laws regarding lottery business operations.

2. Bear responsibility for managing and preserving capital and assets in accordance with the law.

3. Bear responsibility for establishing and issuing related business management procedures, internal expenditure regulations ensuring transparency, accuracy, economy, effectiveness, and full compliance with state regulations in organizing and conducting lottery business activities.

Chapter IX

IMPLEMENTATION

Article 47. Transitional Provisions

1. For organizations issuing lottery tickets that are currently issuing lottery products outside those specified in Article 6 of this Circular, they must cease issuance no later than January 1, 2014.

2. For organizations issuing lottery tickets that are currently operating draw times different from those stipulated in Clause 2 of Article 24 of this Circular and that are currently entering into lottery agency contracts with entities not in accordance with Article 16 of this Circular, they must adjust the draw times and re-enter into lottery agency contracts no later than January 1, 2014.

3. Organizations issuing lottery tickets that are currently issuing lottery types with ticket denominations not conforming to those specified in Article 7 of this Circular must adjust the ticket denominations no later than October 1, 2013.

Article 48. Implementation Provisions

1. This Circular takes effect from October 1, 2013.

2. This Circular replaces Circular No. 65/2007/TT-BTC dated June 18, 2007 guiding detailed implementation of Decree No. 30/2007/NĐ-CP; Article 1 of Circular No. 131/2009/TT-BTC dated June 29, 2009 amending and supplementing certain provisions of Circular No. 65/2007/TT-BTC dated June 18, 2007.

3. During the process of implementation, if there are difficulties or obstacles, organizations and individuals should promptly report them to the Ministry of Finance for consideration and resolution./.