Decision No. 93/2004/QD-BTC Issuing the regulations on organizing the issuance of instant lottery tickets with immediate results

DECISION OF THE MINISTER OF FINANCE

Issuing regulations for instant scratch-off lottery tickets with immediate results

THE MINISTER OF FINANCE

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating functions, tasks, powers, and organizational structure of Ministries and Ministerial-Level Agencies;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

DECISION:

Article 1: Accompanying this decision is the regulation on organizing the issuance of instant scratch-off lottery tickets with immediate results to be uniformly applied throughout the country.

Article 2: This decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 826TC/QĐ/CĐTC dated September 5, 1994 of the Minister of Finance regarding the issuance of temporary regulations on organizing the pilot issuance of instant result lottery tickets; Decision No. 830TC/QĐ/CĐTC dated September 6, 1994 of the Minister of Finance regarding printing, receiving, and managing instant result lottery tickets; Decision No. 1139TC/QĐ-TCNH dated November 2, 1995 of the Minister of Finance regarding the issuance of temporary regulations on organizing the pilot issuance of instant result lottery tickets for southern provinces and cities; Decision No. 709TC/QĐ/TCNH dated August 19, 1996 regarding supplementation and amendment of the temporary regulations issued together with Decision No. 1139TC/QĐ/TCNH and Decision No. 1142TC/QĐ-TCNH dated November 2, 1995 of the Minister of Finance regarding approval of temporary regulations for the southern region on organizing the issuance of instant result scratch-off lottery tickets during the pilot period.

Article 3: The Director of the Department of Financial Institutions and Financial Organizations, the Head of the Ministry of Finance’s Office, the Heads of relevant units under the Ministry of Finance, the Directors of Provincial Departments of Finance, and the Directors of Lottery Enterprises in provinces and cities are responsible for implementing this decision./.

REGULATIONS

Organization of issuing instant scratch-off lottery tickets with immediate results

(Issued together with Decision No. 93/2004/QĐ-BTC

dated December 2, 2004 of the Minister of Finance)

Instant scratch-off lottery tickets with immediate results (referred to as instant scratch-off lottery tickets) are a type of lottery ticket that does not require a draw to determine the winning numbers; the winning results are printed on the ticket and covered. After purchasing the ticket, the buyer only needs to lightly scratch off the covering layer at the designated area to know if the ticket is a winner or not.

To ensure compliance with the unified management regulations for issuing lottery tickets, the Ministry of Finance issues regulations on organizing the printing and issuance of instant scratch-off lottery tickets with immediate results to provide lottery enterprises in provinces and cities with a basis for implementation.

PART I: GENERAL PROVISIONS

Article 1: Requirements for organizations issuing instant scratch-off lottery tickets with immediate results:

1. Issuing instant scratch-off lottery tickets with immediate results must ensure compliance with all state regulations on unified management of lottery ticket issuance, current laws, and the provisions of these regulations.

2. Issuing instant scratch-off lottery tickets with immediate results must ensure objectivity, honesty, safety, and scientific arrangement of prize structures to facilitate prize distribution and management, ensuring absolute secrecy about winning tickets, and protecting the interests of ticket buyers.

3. Issuing instant scratch-off lottery tickets with immediate results must be accompanied by effective promotional and advertising activities, explaining to the public the purpose and significance of organizing lottery ticket issuance, and combining with other types of lotteries to combat illegal gambling activities in the area.

PART II: SPECIFIC PROVISIONS

Article 2: Quality standards for instant scratch-off lottery tickets with immediate results:

1. Instant scratch-off lottery tickets with immediate results must meet all management requirements as stipulated (name of the lottery enterprise, price, serial number code, rules for prize redemption, prize structure, redemption deadline, security code for verification and fraud prevention), have an attractive format, and contain sufficient information necessary for buyers.

2. Images printed on the ticket must comply with local customs and traditions and meet management requirements; the name printed on the ticket must be "instant scratch-off lottery tickets with immediate results."

3. The coating layer at the designated areas for scratching and non-scratching must ensure that the contents underneath cannot be seen under normal light conditions or by machine with a 500W lamp, and must not peel off or deform under normal conditions.

4. The number of winning tickets and the value of prizes listed on the ticket must match the prize structure listed on the back of the ticket.

Article 3: Ticket Price:

The price of instant scratch-off lottery tickets with immediate results is established based on ensuring balance and harmony with the prices of other types of lottery tickets issued simultaneously; it can vary across multiple levels, with a maximum of 10,000 VND per ticket.

Article 4: Prize Structure:

It is designed and displayed on each individual ticket. For each different ticket price, there is a corresponding prize structure. The prize structure is programmed into a computer system, ensuring compliance with regulations, but the maximum should not exceed 55% of sales revenue.

Article 5: Conditions for printing instant lottery tickets revealing results immediately:

1. Printing facility:

a. Type of enterprise:

State-owned enterprises listed in the registry of printers registered with the General Department of Taxation.

b. Production technology process ensuring the safety of instant lottery tickets revealing results immediately:

Having a separate production area;

Having specialized equipment to ensure random distribution of prizes;

Having a strict monitoring and control procedure for the ticket from design to packaging storage;

Not allowing workers or staff to observe and determine winning tickets;

c. Management procedures ensuring the safety of instant lottery tickets revealing results immediately:

Having clear internal management regulations that meet the requirements to prevent the determination of winning tickets before issuance;

d. Instant lottery tickets revealing results immediately must comply with the requirements set forth in Article 2 of this regulation.

2. Prize allocation must be carried out on specialized equipment, constructed according to various programs, encoded for fraud prevention.

3. Prizes printed on tickets with protective layers must ensure objectivity, strictly controlled according to the issuance announcement to protect the rights of ticket buyers.

The lottery company and the printing facility must sign a printing contract for each batch, independently responsible for the quality standards and confidentiality of the instant lottery tickets.

4. The lottery company is responsible for selecting printing facilities for instant lottery tickets revealing results immediately that meet the conditions stipulated in Clause 1, Clause 2, and Clause 3 of this Article.

Article 6: Regulations on managing instant lottery tickets revealing results immediately during the printing process.

1. The lottery company must register with the Tax Bureau in its locality and be subject to the Tax Bureau's management during the printing of instant lottery tickets in accordance with current regulations on printing, issuance, use, and management of invoices.

2. The printing enterprise has the responsibility to establish machine management regulations, employee program allocation management regulations, and comprehensive management procedures related to printing instant lottery tickets revealing results immediately to ensure secrecy and security from programming, prize allocation, key usage, to packaging, storage, delivery, and destruction of defective products.

3. The entire prize printing process must be recorded and stored on dedicated equipment to ensure absolute secrecy and can only be accessed when there is a written request from the lottery company and authorized representatives of the printing facility and the lottery company.

4. Packaged tickets must meet management requirements, making it easy to identify responsibilities at each stage of production and consumption.

5. The secure key code on winning tickets on the ticket must be jointly established and decoded by the lottery company and the printing facility to ensure strict control and security.

Article 7: Conditions for organizing the issuance of instant lottery tickets revealing results immediately:

1. Lottery companies wishing to issue instant lotteries must develop a project report submitted to the Department of Finance for approval by the Provincial People's Committee to allow issuance.

The project must include the following main contents:

a. Annual issuance plan divided by month and quarter.

b. Printing location, ticket design, and measures to ensure ticket safety.

c. Network organization.

d. Publicity and advertising activities.

e. Economic and social benefits.

f. Organizational management measures.

The decision to allow the issuance of instant lotteries by the Provincial People's Committee must be sent to the Ministry of Finance for monitoring and management.

2. Must have sufficient material conditions to serve issuance; must organize a good network of agents and publicly announce the issuance regulations and contest rules.

Article 8: 3. Must conduct pilot issuance to gain experience. When expanding the issuance area, a report must be submitted to the Provincial People's Committee.

Regulations on organizing the issuance of instant lottery tickets revealing results immediately:

1. The market for selling instant lottery tickets revealing results immediately is the common market of provinces and cities in the region as follows:

a. Northern Region: includes provinces and cities from Ha Tinh Province northward.

b. Central Region: includes provinces and cities from Quang Binh Province to Ninh Thuan Province, Dak Nong Province.

c. Southern Region: includes provinces and cities from Binh Thuan Province, Lam Dong Province, Binh Phuoc Province southward.

2. When issuing, market research must be organized well to build an appropriate issuance plan based on consumption capacity, ticket management, and prize payment; publicizing and advertising activities must be organized well to explain to the people the purpose, significance, fairness, and objectivity of the issuance of instant lotteries.

Article 9: 3. The circulation period of each issuance batch of instant lotteries should be determined appropriately according to market characteristics and convenient for ticket sales and prize payment management.

Responsibilities of the lottery company towards customers:

The lottery company must publicly inform participants in instant lotteries revealing results immediately of the following contents:

1. Regulations in the issuance rules of instant lotteries revealing results immediately.

Article 10: 2. Authorizing agents to pay winners who can claim their prizes immediately at the point of sale according to the lottery company's regulations.

The following cases shall not be eligible for claiming prizes:

1. Tickets that are no longer intact, torn, patched, or erased.

2. Tickets scratched in the designated area but unable to retain the winning characters and numbers.

3. Tickets scratched in areas marked "Do not scratch here".

Article 11: 4. Winning tickets that exceed the validity period specified on the ticket or in the issuance announcement of the lottery company.

Instant lottery ticket agents:

The lottery company may select among existing lottery ticket sellers or organize additional agents to sell instant lottery tickets revealing results immediately, but must adhere to the following principles:

2. Instant lottery ticket agents who know the results immediately must pay the full amount in cash upon receiving tickets for sale. In cases where agents have difficulties, they may be considered to provide collateral with negotiable instruments (savings books, deposit certificates, bonds, bills, promissory notes, etc.) equivalent to the value of the received tickets (excluding agent commissions on ticket sales).

3. Instant lottery ticket agents who know the results immediately are only permitted to sell tickets that are still within their circulation period and must be familiar with the issuance rules to guide and explain them to buyers.

4. Instant lottery ticket agents who know the results immediately must sell at the correct price and pay out winnings to winners according to the winning value and in accordance with the prizes specified by the lottery company that the agent is authorized to pay. Tickets that have been paid out must be stored intact as the basis for settlement with the lottery company.

5. Agents are not allowed to scratch areas marked "No Scratching Here," except for winning tickets within the prize range authorized by the lottery company to pay out.

6. Any errors or mistakes in the process of selling tickets or paying out prizes not in accordance with the lottery company's regulations, the agent shall bear material responsibility towards the buyer and the lottery company.

7. Instant lottery ticket agents who know the results immediately must comply fully with all procedures stipulated in the Lottery Agent Regulations.

Article 12: Commission for agents:

The commission for agents is set by the lottery company, with a maximum rate not exceeding 13% of the company's ticket sales revenue.

Article 13: For ticket buyers.

1. Before purchasing a ticket, buyers need to carefully study the provisions recorded on both sides of the ticket or ask the agent for guidance on the contest rules.

2. Do not purchase tickets that have exceeded the circulation validity period specified on the ticket.

3. After purchasing a ticket, buyers should gently scratch off the covering layer on the designated area of the ticket to determine whether it is a winning ticket and the value of the prize.

Article 14: Prize payout and management of winning tickets:

1. Winning tickets can be claimed at the lottery company or at authorized agent outlets.

2. Prizes will only be paid out for tickets that do not violate the provisions of Article 10 of this regulation.

3. Prior to making the prize payment, the prize payout staff must verify the winning ticket presented by the holder to ensure it meets the valid winning ticket criteria as stipulated, and winning tickets that have been paid out must be punched with a hole.

4. Before storing paid-out winning tickets, the lottery company must organize inspections, prepare records confirming that these tickets meet the requirements, and create detailed lists of the number of winning tickets and the amounts paid out.

5. The storage of winning tickets must be carried out in accordance with current regulations issued by the Ministry of Finance.

Article 15: Recovery of unsold tickets (tickets that did not sell):

When the circulation period of instant lottery tickets expires, the lottery company must recover unsold tickets (unsold tickets), organize inspections, counts, and destruction in accordance with current regulations. To invalidate a ticket, a corner must be cut off.

Article 16: Regarding the fulfillment of payment obligations between agents and the lottery company:

1. Instant lottery ticket agents who know the results immediately can only receive tickets after completing legal procedures to guarantee the full payment of 100% of the amount due before receiving the tickets from the lottery company.

2. The use of methods to secure payment obligations of instant lottery ticket agents who know the results immediately with the lottery company shall be implemented in accordance with current regulations.

Article 17: Payment for ticket sales:

Instant lottery ticket agents who know the results immediately must submit the full proceeds from ticket sales to the lottery company according to the deadlines specified in the contract and relevant current state regulations.

Article 18: Obligation to pay state budget:

Lottery companies must fulfill the obligation to pay all taxes and other payments into the state budget in accordance with current laws.

Article 19: Accounting work:

1. All activities related to the issuance of instant lottery tickets must be recorded in accounting ledgers in accordance with current laws and state accounting systems.

2. In addition to general reporting requirements, monthly and quarterly reports on the issuance of instant lottery tickets must be submitted to the Ministry of Finance for monitoring and management.

Article 20: Handling Violations:

Organizations and individuals violating the provisions of this regulation shall be subject to administrative penalties (including suspension of instant lottery ticket issuance) or criminal liability as provided by law, depending on the severity of the violation.

Intentional fraudulent alteration or printing of fake tickets to claim prizes shall result in material compensation or criminal liability, depending on the severity of the violation.

CHAPTER III: IMPLEMENTATION ORGANIZATION

Article 21: Responsibilities for Implementation:

1. Lottery companies currently issuing instant lottery tickets with immediate results shall not need to seek permission from the People's Committee of the province to issue such tickets.

2. Lottery companies are responsible for strictly adhering to this Regulation and are subject to inspection by the Department of Finance, the People's Committees of provinces and cities, the Ministry of Finance, and competent authorities.

3. In the course of implementation, if any difficulties arise, they must be reported to the People's Committees of provinces and cities and the Ministry of Finance for prompt resolution./.