Circular No. 75/2013/TT-BTC dated June 04, 2013 of the Ministry of Finance detailing lottery business operation

THE MINISTRY OF FINANCE

Circular No. 75/2013/TT-BTC dated June 04, 2013 of the Ministry of Finance detailing lottery business operation

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

Pursuant to the Decree No. 30/2007/ND-CP dated March 01, 2007 of the Government on lottery business and the Decree No. 78/2012/ND-CP dated October 05, 2012 of the Government amending and supplementing a number of articles of the Government s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business;

At the proposal of Director of Department of Finance of Banks and Financial Institutions;

The Minister of Finance promulgates the Circular guiding in details on lottery business operation,

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular detailing some contents on management of lottery business operation as prescribed in the Decree No. 30/2007/ND-CP dated March 01, 2007 of the Government on lottery business and the Decree No. 78/2012/ND-CP dated October 05, 2012 of the Government amending and supplementing a number of articles of the Government s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business (hereinafter called the Decree No. 30/2007/ND-CP and Decree No. 78/2012/ND-CP).

Article 2. Subjects of application

1. One-member limited liability companies of lottery owned by People’s Committees of central-affiliated cities and provinces (hereinafter called the lottery companies).

2. One-member limited Liability Company of Vietnam computing lottery (hereinafter called the Vietnam computing lottery Company).

3. Owners of lottery companies, Vietnam computing lottery Company.

4. Relevant organizations and individuals.

Article 3. Interpretation of terms

Apart from terms, which have been explained at Article 2 of the Decree No. 30/2007/ND-CP, other terms in this Circular, are construed as follows:

1. “Traditional lottery with 5 numbers" means a type of traditional lottery with 5 numbers for participation in lottery being printed ready on the lottery ticket from number 00.000 to number 99.999 in each serial issuance.

2. “Traditional lottery with 6 numbers" means a type of traditional lottery with 6 numbers for participation in lottery being printed ready on the lottery ticket from number 000.000 to number 999.999 in each serial issuance.

3. “Bingo lottery” means a type of lottery which the lottery participant is entitled to select the lottery numbers and the winning result is defined after issuing lottery tickets.

4. “Bingo lottery with 2 self-selecting numbers” means type of lottery which the lottery participant is entitled to select 2 numbers from 00 to 99.

5. “Bingo lottery with 3 self-selecting numbers” means type of lottery which the lottery participant is entitled to select 3 numbers from 000 to 999.

6. “Bingo lottery with 4 self-selecting numbers” means type of lottery which the lottery participant is entitled to select 4 numbers from 0000 to 9999.

7. “Bingo lottery with self-selecting double numbers” means type of lottery which the lottery participant is entitled to select 2, 3 or 4 double numbers from 00 to 99.

8. “The scratching lottery for instant result” means type of lottery in which the prize draw had been performed by software distributing randomly prizes before that. The winning results were printed ready on ticket and closely covered. After buying ticket, the lottery participant scratch the layer covering on the surface of ticket at the provided position so as to see the winning result or failing result.

9. “The tearing lottery for instant result” means type of lottery in which the prize draw had been performed before that. After buying ticket, the buyer may cleave, tear or use other methods so as to open the ticket and compare the numbers printed ready on the ticket with the table of lottery result notified by the lottery companies for information of the winning or failing result.

10. “Debt term" means the duration for lottery agents to finish payment of consumed tickets for all kinds of ticket in each time of receiving tickets from lottery companies, after the tickets are officially issued.

11. “The lottery agents” include organizations, individuals eligible legally as prescribed in this Circular directly sign contract of lottery agent with lottery companies for ticket distribution, consumption and paying the prizes to clients when clients win according to conditions, terms specified in contract of lottery agent.

12. “The issuance linkage mechanism” means mechanism on issuing lottery tickets under the method in which lottery companies in a region will issue a set of tickets shared in whole region with a unified prize structure, the prize draw is organized together and all expenses for prizes, printing tickets are allocated among lottery companies under the operational regulation of the regional lottery Council already approved by the Ministry of Finance.

13. “The sharing market mechanism” means mechanism on issuing lottery tickets under the method in which each lottery company in a same region may issue the lottery tickets and sell on whole region according schedule of the prize draw already been provided by the Ministry of Finance. Each lottery company issuing lottery tickets shall be responsible for all affairs of the lottery issuance, the prize draw and payment for prizes.

14. “Organizations issuing lottery tickets” include lottery companies or the regional lottery Council (in case of issuing lottery ticket under the linkage mechanism) eligible for issuing lottery tickets as prescribed in this Circular.

Article 4. Regional lottery council’s activities

1. The lottery business activities divided under regions, specified as follows:

a. The north region, including the following central-affiliated cities and provinces: Bac Giang, Bac Kan, Bac Ninh, Cao Bang, Dien Bien, Ha Giang, Ha Nam, Ha Noi, 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 central-affiliated cities and provinces: 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 South region, including the following central-affiliated cities and provinces: 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. The lottery companies in a same region as prescribed in clause 1 this Article shall establish the regional lottery Council. The regional lottery Councils operate as prescribed by law on lottery business and the operational regulations of regional lottery Councils. The operational regulations of regional lottery Councils are approved by the Councils and accepted by the Ministry of Finance.

3. The Vietnam computing lottery company participates in the lottery Councils of North, Central and South regions but it has no voting right for business activities of lottery types and products specified in Article 6 of this Circular.

Article 5. Lottery ticket’s issuance

1. The lottery companies are entitled to issue types of lottery ticket specified in Article 6 of this Circular. Activities of the printing, distribution and issuance of lottery tickets, organization and supervision of the prize draw of lottery companies comply with this Circular.

2. The Vietnam computing Lottery Company is entitled to issue types of the computing lottery ticket as prescribed by the Ministry of Finance. Products, activities of issuance, distribution, organization and supervision of the prize draw of all kinds of the lottery self-selecting the computing number shall comply with other guiding Circular of the Ministry of Finance.

3. Issuance, distribution, organization and supervision of prize draw for products of lottery self-selecting the computing number that are allowed to issue of the State-owned one-member limited liability company of Thu Do lottery shall comply with the Circular No. 44/2009/TT-BTC dated March 10, 2009 of the Ministry of Finance guiding the issuance of computing lottery of the State-owned one-member limited liability company of Thu Do lottery and documents amending and supplementing, replacing (if any).

Chapter 2

PRODUCT TYPE, LOTTERY PARTICIPATION’S RULES AND LOTTERY TICKET PRINT

Article 6. Types and forms of the issued lottery products

1. For the traditional lottery:

a. Traditional lottery with 5 numbers;

b. Traditional lottery with 6 numbers;

2. For the manual bingo lottery:

a. Bingo lottery with self-selecting 2 numbers;

a. Bingo lottery with self-selecting 3 numbers;

c. Bingo lottery with self-selecting 4 numbers;

d. Bingo lottery with self-selecting 2 double numbers;

dd. Bingo lottery with self-selecting 3 double numbers;

e. Bingo lottery with self-selecting 4 double numbers;

3. For the lottery for instant result:

a. The tearing lottery for instant result;

a. The scratching lottery for instant result;

Article 7. Lottery ticket’s price

1. Traditional lottery tickets have prices as follows:

a. 5,000 VND;

b. 10,000 VND;

c. 20,000 VND.

Issuance of traditional lottery tickets with price of 20,000 VND may perform not exceeding 04 (four) times of issuance on occasion of Lunar Tet every year on the basis of the consensus of the regional lottery Council and having written approval of the Ministry of Finance.

2. The manual bingo tickets have types of price as follows:

a. Types of manual bingo lottery tickets specified in clause 2 Article 6 of this Circular have price not more than 10,000 VND;

b. If organizations issuing lottery tickets print the manual bingo lottery tickets that are used many times for prize participation, total value inscribed in the tickets will not more than 50,000 VND.

3. Scratching lottery tickets for instant result have types of price as follows:

a. 2,000 VND;

b. 5,000 VND;

c. 10,000 VND.

4. Tearing lottery tickets for instant result have types of price as follows:

a. 2,000 VND;

b. 5,000 VND;

c. 10,000 VND.

Article 8. Rules for lottery prize participation

1. Organizations issuing lottery ticket must elaborate and publicize the rules for lottery prize participation for each lottery types and products entitled to issue. The rules for lottery prize participation must have the following principal contents:

a. Lottery types and products;

b. Name of organizations issuing lottery tickets;

c. Subjects participating in winning prizes and conditions for participation in winning prizes;

d. Methods of participation in winning prizes;

dd. Methods to define the results of winning prizes;

e. Quantity of prizes and price structure;

g. Duties and benefits of participants for winning lottery prizes;

h. Duties and powers of lottery companies;

i. Conditions to receive prizes for the winning lottery tickets;

k. Recommends for participants in winning prizes about duties in participation in winning lottery prizes, such as: “Participating in buying lottery may bring benefits for the country and households”, “No one can enrich from buying lottery”, etc

2. The rules for lottery prize participation are publicized through posting publicly at head offices of lottery companies and lottery agents, publishing on electronic information pages of lottery companies (if any), issuing leaflets for agents and customers or other means of mass media as prescribed by law.

Article 9. Rate of prize payment and prize structure

1. The rate of prize payment for each type of lottery is prescribed as follows:

a. For the traditional lottery: the rate of prize payment is elaborated for each issuance time not more than 50% over total value of the issued lottery tickets;

b. For the scratching lottery for instant result and the tearing lottery for instant result: the rate of prize payment is elaborated for each issuance time not more than 55% over total value of the issued lottery tickets;

c. For the manual bingo lottery: the rate of prize payment is elaborated not more than 60% over total value of the lottery tickets expected for issuance.

2. Price structure:

a. The organizations issuing lottery tickets may decide quantity of prize ranks, structure of each prize in total value of prizes in conformity with the rate of prize payment as prescribed and agreed by the regional lottery Council;

b. Value of prizes paying to customers is defined according to methods of paying the fixed prizes, including:

- Prizes have been fixed before by the defined amounts;

- Prizes have been fixed before by a number of times (calculated according to the method of arithmetically multiplying) in comparison with the amounts that customers used to participate in winning prizes;

c. If the Ministry of Finance provided for the rate of value of special prize on total value of prizes, organizations issuing lottery tickets must arrange value of special prize in price structure as prescribed by the Ministry of Finance.

Article 10. Lottery ticket’s print

1. Organizations issuing lottery tickets may self-print or place an order for printing lottery tickets at the printing facilities eligible so as to meet the confidential requirement and safety in business activities.

2. Organizations issuing lottery tickets are entitled to decide on form, size of lottery tickets. Lottery tickets must contain the following principal contents:

a. Name of organizations issuing lottery tickets;

b. Price of lottery tickets;

c. Serial number of lottery ticket;

d. Random numbers or results for customers to select;

dd. Day of the prize drawing, time limit of circulating lottery ticket; time limit of receiving prizes;

e. Price structure according to the serial issuance;

d. Signs for identification to prevent forging or encryption key to control lottery ticket;

h. Other information in serve for lottery participants includes: Price structure, conditions to receive prizes, address of receiving prizes, other necessary information at the management request of organizations issuing lottery tickets.

3. Organizations issuing lottery ticket shall define the quantity of lottery tickets of each time of lottery ticket issuance in conformity with ability of consumption, market demand, ability of management and assurance of effective business.

In case where the Ministry of Finance provided for limitation of quantity and value of lottery tickets that are permitted to issue or limited the minimum average rate of consuming lottery tickets in each period, organizations issuing lottery tickets must implement the printing and issuance of lottery tickets as prescribed by the Ministry of Finance.

Article 11. Principles of lottery ticket’s print

1. It must be sufficient quantity according to each sign of lottery ticket and conformable with the price structure as notified about issuance.

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

a. When printing traditional lottery tickets, it is required to have the storage stub for controlling lottery tickets of organizations issuing lottery;

In case the printed lottery tickets have reflective signs or system of barcode, system of encrypted code meeting requirement of control, management and distinguish between true lottery ticket and fake lottery tickets, ensuring strictly in printing lottery tickets, having no ability happening fraudulences, the printing of lottery tickets may not require storage of stub of ticket;

b. When printing bingo lottery tickets, it is required to have stub of tickets or storage part for recording and comparing the numbers already selected by customers for participation in winning prizes;

c. The scratching lottery tickets for instant result must have encryption key to control and compare in defining prizes. The covering substance at the position prescribed for scratching and not scratching must ensure that the inside content is viewless by naked eyes under all luminous intensity or other machines or devices; not self-stripped or distorted in normal conditions;

For the printing of the scratching lottery tickets for instant result, the print facilities must have specialized equipment and software program to randomly allocate prizes. Software for allocation of prizes must have system of encryption keys so as to prevent illegally accessing and repairing. Whole process of printing the prizes is recorded, copied and saved on separate device, assured for absolute secret and the it is permitted to see recorded results only when having request in writing of lottery companies placing order for printing lottery tickets and competent representative of the print facilities. The lottery companies placing order for printing the tickets and the print facilities shall coordinate in set encoders and decoders of the safety key codes for the lottery tickets winning prizes;

d. The tearing lottery tickets for instant result must ensure that the inside content is viewless when illuminate by naked eyes under all luminous intensity or by other machines, devices and means. The lottery tickets must ensure requirement on preventing against forging and misusing to use for recirculation and sale for many times.

3. In case where the regional lottery Council issue lottery tickets under the linkage mechanism, the selection of facility printing lottery tickets must be perform according to form of publicly bidding. Criteria, process for selecting facility printing lottery tickets are specified in the operational regulation of the regional lottery Council.

4. The printing of lottery tickets must be performed through economic contract, in which clearly define quantity of lottery tickets for printing; technical requirements for printing lottery tickets; duties and benefits of parties; mechanism to control the process of printing so as to ensure not happening fraudulence; handling of disputes, compensation and other agreements to meet the management requirements of parties.

5. Organizations issuing lottery tickets are responsible for reporting to the Taxation Department of provinces, cities (where performing tax obligation) about name of facility printing lottery tickets, signs of lottery tickets (serial numbers of lottery tickets), quantity and price of each kind of lottery tickets in each time of printing for monitoring and management.

Chapter 3

LOTTERY TICKET’S DISTRIBUTION AND ISSUANCE

Article 12. Distribution

1. Organizations issuing lottery tickets implement distribution of lottery products as prescribed in Article 6 of this Circular to customers under the following methods:

a. Direct sale to customers;

b. Through system of lottery agents as prescribed in this Circular.

2. Apart from methods of distributing lottery tickets as prescribed in clause 1 of this Article, lottery products specified in Article 6 of this Circular are not permitted to distribute through the channels: telephone (immobile, mobile), electronic equipment, internet and other telecommunication means.

Article 13. Issuance area

Issuance areas of lottery tickets specified in Article 6 of this Circular are provided as follows:

1. For the North region:

a. Traditional lottery is issued under the linkage mechanism in issuance. Lottery tickets are consumed in the scope of administrative boundaries of each central-affiliated city or province of each lottery company;

b. Manual bingo lottery, scratching lottery for instant result, tearing lottery for instant result are issued and consumed in the scope of administrative boundaries of each central-affiliated city or province of each lottery company;

2. For the Central region:

a. Traditional lottery, scratching lottery for instant result, tearing lottery for instant result are issued under the general market mechanism. The Ministry of Finance shall provide schedules for the prize draw of lottery companies;

a. Manual bingo lottery are issued and consumed in the scope of administrative boundaries of each central-affiliated city or province of each lottery company.

3. For the South region:

a. Traditional lottery, scratching lottery for instant result, tearing lottery for instant result are issued under the general market form. The Ministry of Finance shall provide schedules for the prize draw of lottery companies;

b. Manual bingo lottery are issued and consumed in the scope of administrative boundaries of each central-affiliated city or province of each lottery company.

Article 14. Subjects in lottery prize participation

1. Subjects in lottery prize participation must meet all conditions prescribed as follows:

a. Being Vietnamese citizens, Vietnamese persons residing overseas or foreigners entering legally in Vietnam;

b. Being persons aged 18 years or older;

c. Not being persons limited on civil act capability or lost civil act capability as prescribed by law.

2. Rights of customers in lottery prize participation

a. Being paid fully value of prizes by lottery companies when they win prizes as prescribed at the Rules of in lottery prize participation specified in Article 8 of this Circular;

b. Being entitled to require lottery companies to keep secret about the winning and receiving of prizes;

c. Being enjoyed other lawful benefits as prescribed at the Rules of participation in winning lottery prizes specified in Article 8 of this Circular.

3. Duties of customers in lottery prize participation

a. Complying with the Rules of participation in winning lottery prizes specified in Article 8 and relevant provisions in this Circular;

b. Preserving the bought lottery ticket to participate in winning lottery prizes in accordance with provisions in the Rules of in lottery prize participation specified in Article 8 of this Circular and Regulation on participation in winning prizes prescribed by lottery companies;

c. When winning prizes, customers must present the wining ticket and documents to prove that they belong to subjects entitled to participate in winning prizes as prescribed in clause 1 of this Article so as to do procedures for receiving prizes as prescribed in this Circular;

d. Implementing fully tax obligations as prescribed by law on tax.

Article 15. Lottery tickets with instant result’s circulation time limit

1. Lottery tickets with instant result’s circulation time limit are as follows:

a. For the scratching lottery with instant result: Not more than 180 days, after date of issuing notice or date of issuance printed on the lottery tickets;

b. For the tearing lottery with instant result: Not more than 90 days, after date of issuing notice or date of issuance printed on the lottery tickets.

2. Lottery companies are responsible for publicly notifying participants buying ticket about time limit of circulation of lottery tickets with instant result.

Article 16. Lottery agents

1. Conditions for lottery agents:

a. For individuals:

- Being Vietnamese citizens aged 18 years or older, permanently residing in Vietnam;

- Not being persons having previous convictions, criminal records; not being persons limited the civil act capability or lost civil act capability as prescribed by law;

- Not being employees, managers working at lottery companies or lottery companies operating in the same area;

- Not being spouse, biological father or mother, adoptive father or mother, children, adopted children, biological sisters or brothers, adoptive sisters or brother of chairmen, General Directors or Directors, deputy General Directors or deputy Directors, Chiefs accountant or persons in charge of accounting, controllers and heads, deputies of professional departments of that lottery company or lottery companies operating in the same area.

- Meeting requirements on ensuring payment as prescribed by law on guarantee transaction to ensure the payment obligation to lottery companies;

- Having written commitment on full compliance with provisions of lottery companies upon becoming lottery agent.

b. For organizations:

- Being economic organizations that are established and operate legally in Vietnam;

- Not being economic organizations owning the contributed capital of chairmen, General Directors or Directors, deputy General Directors or deputy Directors, Chiefs accountant or persons in charge of accounting, controllers and heads, deputies of professional departments of that lottery company or lottery companies operating in the same area;

- Not being economic organizations owning the contributed capital of spouse, biological father or mother, adoptive father or mother, children, adopted children, biological sisters or brothers, adoptive sisters or brother of chairmen, General Directors or Directors, deputy General Directors or deputy Directors, Chiefs accountant or persons in charge of accounting, controllers and heads, deputies of professional departments of that lottery company or lottery companies operating in the same area;

- Meeting requirements on ensuring payment as prescribed by law on guarantee transaction to ensure the payment obligation to lottery companies;

- Having written commitment on full compliance with provisions of lottery companies upon becoming lottery agent.

2. Based on conditions specified in clause 1 of this Article, lottery companies may select organizations, individuals eligible for lottery agents. Selection of lottery agents must ensure principles of publicity, transparency and objectivity.

In case where organizations, individuals suggesting to do lottery agent are more than demand of lottery companies, lottery companies may organize bidding to select organizations, individuals that are eligible and have network that meeting requirements on ticket distribution and have the low cost level for agent commission so as to do as lottery agents.

3. Lottery agents shall implement tax obligations as prescribed by law.

Article 17. Contract of lottery agents

1. Organizations and individuals eligible as prescribed in Article 16 of this Circular and selected to do as lottery agent must sign contract of lottery agent with lottery companies.

2. Contracts of lottery agent that are elaborated by lottery companies must ensure full principal contents as follows:

a. Names, addresses, representatives of parties signing contracts of lottery agent;

b. Type of lottery tickets received for sale;

c. The allowed methods of distributing lottery tickets;

d. Methods of and procedures for delivery and receipt of tickets and returning lottery ticket that are not sold;

dd. Quantity of lottery tickets received for sale. In case where quantity of lottery tickets received for sale is adjusted in each period, content of quantity of lottery tickets received for sale is specified in Annex of contract. Annex of contract is an integral part of contract of lottery agent;

e. Rate of agent commission; rate of the charges enjoyed from payment for lottery tickets winning prizes (if any);

g. Methods of paying amounts from sale of lottery ticket, time of payment, debt term;

h. Forms to guarantee performance of payment obligation;

i. Rights and obligations of parties signing contract;

k. Handling of violations and commitments on compensation due to breaking contract;

l. Effect time limit of contract;

m. Other contents in serve for the management requirements of lottery companies but not being contrary to provisions of law.

Article 18. Payment for lottery tickets and guarantee for payment obligation

1. Lottery agents must pay full for lottery tickets received for sale to lottery companies when receiving lottery tickets of lottery companies.

2. In case where a lottery company allow a lottery agent to be in debt from sale of lottery tickets, the maximum time for debt of lottery agent does not exceed time limit specified in Article 19 of this Circular and it is required for lottery agent to have property to guarantee for its payment obligation.

3. Measures to guarantee the payment obligation of lottery agent to lottery company comply with provision in Article 13 of the Decree No. 30/2007/ND-CP and provisions of law on guaranteed transaction.

4. The guaranteed levels for payment obligation of lottery agent to lottery company are specified as follows:

a. For quantity of tickets that lottery agent has received but date of issuing lottery ticket has not yet come, the minimum guaranteed level for payment obligation is defined as follows:

b. For quantity of tickets that lottery agent has received and defined that they have been sold in period, the guaranteed level for payment obligation is equal 100% of total value of the sold lottery tickets deducting commission of lottery agent enjoyed as prescribed.

5. The process of and procedures for registration of guarantee transaction for properties used for guarantee of payment obligation comply with provisions of law on guarantee transactions and registration of guarantee transactions.

6. Lottery companies must assess value of properties used for guarantee of payment obligations at time of receiving properties; periodically, re-assess or implement re-assessment as necessary. For properties as real estate, movable properties used in guarantee for payment obligation but lottery companies fail to have sufficient capability for valuation, lottery companies may hire organizations having function on evaluation to define value of properties used in guarantee for payment. Expenses for evaluation are calculated into the business operational expenses of lottery companies.

Lottery companies and agents may agree and unify the rate of value to receive guarantee for payment in comparison with value of properties, but capability of debt recovery must be ensured if contract is broken.

Article 19. Debt term

1. Debt terms of lottery agents to lottery companies are specified as follows:

a. For traditional lottery, bingo lottery: Not exceeding 21 days (03 weeks), after issuing lottery tickets.

b. For the scratching lottery for instant result and the tearing lottery for instant result: Maximally monthly, lottery agents must do procedures for payment to lottery companies about tickets sold in term, concurrently define the remaining tickets so as to continue monitoring and paying in the next times. Based on the circulation time limit of lottery tickets as prescribed in Article 19 of this Circular, lottery companies may request lottery agents for completing the payment of all lottery tickets received for sale to lottery companies. Debts of lottery agents are defined according to value of lottery tickets sold in term.

2. Based on actual conditions, characteristics of issuance, number of times of prize draw of traditional lottery, lottery companies may decide specifically on time limit for completing the payment of amounts purchasing lottery tickets of agents but not exceed the set levels mentioned above.

3. If lottery agents fail to pay or pay insufficiently to lottery companies under the contracts of agents already signed when arriving time limit of payment for purchasing lottery tickets, lottery companies are entitled to stop sale of lottery tickets to lottery agents and apply necessary measures for recovery of the amounts from sale of lottery tickets as prescribed by civil law including: Sale of pledged properties; bringing the mortgaged properties into sale; recovery or sale of properties in deposit; the properties in escrow account; requesting the guarantee parties for payment the amounts that they have accepted guarantee for lottery agents.

Article 20. Withdrawal of unconsumed lottery tickets, stubs or stored parts of manual bingo lottery tickets

1. To organize withdrawal affair

a. Lottery companies shall arrange locations for withdrawal of lottery tickets (traditional lottery, lottery with instant result) that remains due to failing to sell all, stub or stored part of manual bingo lottery tickets at head offices, branches, representative offices or other locations in conformity with the management requirement of each lottery company. Lottery companies shall notify publicly lottery agents about name, address of locations for withdrawal of lottery tickets;

b. If lottery companies authorize for other lottery companies to withdraw lottery tickets, the authorization must be performed in writing after having consensus of the lottery supervision Council, in which clearly stipulate on members, process of control, mechanism of supervision and duties, powers of parties.

2. Principles of the lottery ticket withdrawal

Lottery companies shall elaborate and issue regulations on process of the lottery ticket withdrawal before prize draw and check and count lottery tickets after withdrawing them. Regulation on process of lottery ticket withdrawal must ensure all the following principles:

a. The lottery ticket withdrawal is performed exactly, honestly, relevant subjects in the process of ticket withdrawal do not misuse it for taking unlawful profits or receipt of prizes;

b. It meets fully the basic steps as prescribed in Annex No. 1, Annex No. 2 and Annex No. 3 promulgated together with this Circular;

c. It clearly states duties of each divisions, individuals related to process of the lottery ticket withdrawal.

Article 21. Storage of withdrawn tickets after prizes

1. After prize draw, lottery companies shall put the lottery ticket already being withdrawn as prescribed in Article 20 of this Circular into warehouses for storage, preservation under the set regime.

2. When put lottery tickets into warehouses for storage, lottery companies must implement the following contents:

a. To compare between lottery tickets of the actual handing and receipt with the withdrawn lottery tickets in the list table made in accordance with regulation;

b. Lottery tickets must ensure requirement which they are packed and sealed according to each day of notifying prize draw (for traditional lottery and manual bingo lottery) or according to each serial issuance (for the scratching lottery, tearing lottery with instant result).

3. Storage duration for lottery tickets, stubs of lottery tickets or the stored part of lottery tickets withdrawn specified in clause 1 this Article is not less than 07 working days, after the expiry date of receiving prizes of lottery tickets. For all lottery tickets of issuance term that arises disputes, complaints in time limit of receiving prizes of that lottery ticket term, after ending the set time limit, lottery companies still must continue storing until having the final handling result.

Article 22. Destruction of un-sold lottery tickets after prizes

1. For lottery tickets expired for storage as prescribed in clause 3 Article 21 of this Circular, lottery companies are entitled to organize destruction.

2. Before implementing destruction of lottery tickets that are expired storage, lottery companies must establish a council for lottery ticket destruction with at least of three members, of which members compulsorily include: representative of leader of lottery companies (chairman of council), chief accountant and storekeeper.

3. After destructing lottery tickets that are expired storage, lottery companies must made a record of lottery ticket destruction with the following principal contents:

a. Date, time, location of lottery ticket destruction;

b. Members participating in lottery ticket destruction;

c. Types of the destructed lottery tickets (detailing according to date of prize draw or the expiry date of circulation of lottery tickets; date of withdrawal; quantity of the destructed lottery tickets; value of the destructed lottery ticket);

d. Method of lottery ticket destruction.

Chapter 4

ORGANIZATION AND SUPERVISION OF PRIZE DRAW

Article 23. Schedule of prize draw

1. The Ministry of Finance shall provide schedules of traditional prize draw of lottery companies or the regional lottery councils for each period.

2. The manual bingo lottery is performed prize draw every day. Lottery companies may use their result of traditional lottery in day or result of manual bingo lottery that are organized prize draw by themselves and traditional lottery result of other lottery companies in the same area and its prize draw is performed in day. The use of traditional lottery result of other lottery companies for issuance of manual bingo lottery must be agreed by parties in writing.

3. Lottery companies may decide on number of prize draw times for the tearing lottery with instant result, the scratching lottery with instant result in conformity with demand of lottery ticket consumption, management capability and assurance of effectiveness in business operation.

Article 24. Location and time of prize draw

1. The prize draw is performed at head office of lottery companies or other places but must located in the administrative boundaries of such provinces or cities. In case where the prize draw is performed outside of the administrative boundaries of such provinces or cities or case of regional linkage for sharing prize draw, it is required to have consensus of lottery companies and have written acceptance of the Ministry of Finance.

2. Organizations issuing lottery tickets may decide the specific time of prize draw but not later than 18:30 PM of the date of prize draw.

Article 25. Devices of prize draw

1. Devices of prize draw include:

a. Spherical cages;

b. Balls serving the prize draw;

c. Electronic scale to check volume of each ball; device to check size of each ball;

d. System of cameras and screens serving supervision of process of prize draw.

2. The management requirement for devices of prize draw:

a. For spherical cages:

- Spherical cages must have clear origin, ensures criteria and specifications in accordance with design of producers. They must be produced by material ensuring limitation of corrosion, rust and other affects from outside;

- Apart from quantity of spherical cages directly serving for each time of prize draw according to the publicized rules of the prize draw, lottery companies must equip minimally more 01 standby spherical cage for use as necessary;

- Periodically, annually as minimally, lottery companies must maintain spherical cages. The maintenance must ensure principle not to falsify the operation principle and specifications of spherical cages. It is required to have diary of monitoring and managing the maintenance during the course of maintenance;

- Spherical cages must be checked the operation process before they are put into use. The examination must have the witness and confirmation of the council of lottery supervision;

- Ending each prize draw, spherical cages and area containing spherical cages must be sealed so as to ensure that there is no intervention from outside.

b. For balls:

- Balls used in prize draw must have uniform material, volume and size. The allowed tolerance for each ball used for lottery draw is as follows:

+ Volume: The maximum deviation not more than 5% of standard volume of each ball;

+ Size: The maximum deviation not more than 5% of standard diameter size of each ball.

- Balls must be arranged according to each set (each set included 10 balls, ordered from No. 0 to No.9); each set of ball must be stored in a separate box, ensure that balls are not rubbed, worn out. Boxes containing balls must be sealed after using for prize draw;

- Quantity of sets of balls of each lottery company must be more than at least twice of quantity of sets of balls that are actually used for each draw time for prizes;

- Biannually, lottery companies must check volume and size of each ball used in prize draw. Balls not satisfying technical standards must be removed. The ball examination before putting balls into prize draw must have the witness and confirmation of the council of lottery supervision.

c. For electronic scale and devices checking size of balls:

- Electronic scale must have high accuracy, stable operation, have been registered on quality standards at competent state agencies or have been tested and confirmed by agencies of measurement standard. Devices for checking size of balls must ensure to check the allowed deviation on size for each ball;

- Electronic scales, devices for checking size of balls must be sealed to preserve after each use time and must be replaced timely when they are overdue the use time limit or fail to meet requirement of examination on the accuracy of ball used in prize draw;

d. For system of cameras and screens serving supervision of process of prize draw:

System of cameras and screens are laid at the assured positions able to supervise whole process of prize draw, especially selection of balls to put into spherical cages, rotating and picking up the winning balls. Images monitored through cameras are stored in time not less than 60 days, from the date of prize draw.

Article 26. Persons for  prize number

1. Organizations issuing lottery tickets may select persons rotating number for prizes to implement prize draw as prescribed.

2. Persons rotating number for prizes must meet the following conditions:

a. Having good morality, clear curriculum vitae, being confirmed by agencies directly managing them or communal authorities where they reside;

b. Not being persons having previous convictions, criminal records or in time of being investigated, prosecuted criminal liability;

c. Not being spouses, biological father or mother, adoptive father or mother, children, adopted children, biological sisters or brothers, adoptive sisters or brother of members of council of lottery supervision.

3. Quantity of persons in list of persons rotating number for prizes must more than at least 1.5 times of quantity of persons used in reality so as to be able to select randomly some persons in those persons to participate in prize draw.

Article 27. Rules of prize draw

1. Organizations issuing lottery ticket shall elaborate and publicize the rules of prize draw to participants in winning prizes for monitoring and supervision. The rules of prize draw must include the following principal contents:

a. Date, time and location of lottery prize draw;

b. Types of lottery organized prize draw;

c. Prizes and ordinal of draw for each prize;

d) Type and principles of operating spherical cages;

dd. Process of rotating number for prizes;

e. Technical standards of balls used for rotating number for prizes (volume, size, tolerance on volume, size in the allowed limit);

d. List of competent representatives of agencies supervising prize draw.

2. The rules of prize draw are elaborated for each type of the issued lottery product.

3. The rules of prize draw are publicized through listing publicly at head offices of lottery companies, published on electronic information pages of lottery companies (if any) and publicized at locations rotating number for prizes.

Article 28. Process prize rotation

1. Preparations for prize draw include:

a. To select randomly persons participating in prize draw;

b. To select randomly sets of balls used in prize draw; unseal sets of balls used in prize draw;

c. To unseal spherical cages used in prize draw;

d. To mix the tearing lottery tickets with instant result before rotating numbers for prizes;

e. To check other necessary conditions to serve for activities of rotating number for prizes.

2. The prize draw includes affairs:

a. Rotating-number test for prizes: To rotate as test for all spherical cages and balls used in prize draw. In case of detecting abnormal matters, to clearly define reason to have handling measures such as replacing spherical cages, Replacing balls or temporarily suspension of prize draw;

b. Officially rotating number for prizes: Officially rotating number for prizes is performed according to the ordinal of draw for each prize as published in the rules of prize draw.

3. Confirmation of results of prize draw:

Results of prize draw must be made in records, confirmed by the council of lottery supervision about the objectiveness, honesty and comply with the process of prize draw as prescribed.

4. Whole process of prize draw must have supervision of the council of lottery supervision.

Article 29. Lottery result’s announcement

1. The lottery results of each prize rank is announced as soon as having lottery result and summed up generally so as to announce publicly all lottery result after ending the prize draw.

2. Based on records confirmed results of prize draw of the council of lottery supervision, competent representatives of lottery companies will sign in notice about result of prize draw to do as basis for comparison and paying prizes to customers.

3. Organizations issuing lottery tickets shall publicize result of prize draw as soon as ending the prize draw. Publicly announcement of result of prize draw is performed through posting publicly at head offices of lottery companies and lottery agents, publishing on electronic information pages of lottery companies (if any), or other means of mass media.

Chapter 5

PAYING PRIZES AND STORING THE WINNING LOTTERY TICKETS

Article 30. Time limit for receiving prizes and duration of paying prizes

1. Time limit for receiving prizes of the winning lottery tickets is 30 days, from date of defining result of winning prizes or expiry date of circulating lottery ticket. Pass this time limit, the winning lottery tickets are no longer valid for receiving prizes.

2. Lottery companies pay prizes at head offices, branches, representative offices and the authorized lottery agents.

3. Duration of payment for the winning lottery tickets of lottery companies to the lottery winner is not later than 05 working days, after receiving request for prizes of customers.

4. In cases arising disputes, complaints, duration for payment may be prolonged until having official conclusion of competent state agencies.

Article 31. Conditions of receiving prizes

1. Lottery tickets receiving prizes must be in intact of form, size, not be torn, no patchwork, not erased, repaired and still in time limit for receiving prizes as prescribed.

In case due to objective reasons, the winning lottery tickets are torn but still have sufficient grounds to identify the initial form, authenticity of tickets, not belong to subjects of doubting on fraudulence, the torn position not influencing to elements for defining on winning prizes, lottery companies may verify and decide the payment for prizes or refusal for paying prizes to customers. Competence for decision is chairmen, General Directors (Directors) of lottery companies specified in the rules on participating in winning lottery specified in Article 8 of this Circular.

2. Based on provision mentioned above, lottery companies shall specify conditions of tickets receiving prizes, cases where the torn tickets and torn positions are considered and verified to decide payment for prizes or refusal for paying prizes to customers in the Rules on participating in winning lottery.

Article 32. Secret on information

1. Customers winning prizes are entitled to require lottery companies to keep secret of the following information:

a. Name and address where they reside.

b. Time and location of receiving prizes.

c. Amounts and purpose of using prize amounts.

2. In case they have no request, lottery companies may publish information of winner and payment of prizes to participants in winning lottery prizes.

3. Lottery companies are responsible for supplying information of winner to competent management agencies when having request to serve for management.

Article 33. Authorization for receiving prizes

If winners are not able to direct receive prizes due to objective reasons (sickness, diseases, on a long-distance trip for work, etc), they may authorized for their legal representative to receive prizes. The authorization for receiving prizes must be made in writing, confirmed by communal authorities where they reside.

Article 34. Authorization for paying prizes

1. Lottery companies may authorize for lottery agents to pay prizes to winners.

2. The authorization for paying prizes must ensure the following requirements:

a. Based on capability of each lottery agent, lottery companies may decide value of prizes to authorize the payment of prizes to each lottery agent;

b. The authorization must be presented in contract of agent signed between lottery company and lottery agent;

c. Agents receiving authorization must take responsibility for the accuracy, honesty of the winning tickets that they have paid prizes and they are not permitted to collect any charges from the winners. Agents are responsible before law if customers have complaints about collection of charges from winners;

d. Lottery companies are entitled to check agents in paying prizes under authorization. In case of detecting that an agent fails to comply with regulation of law and the signed contracts on authorization for paying prizes, lottery companies are entitled to terminate the authorization to such agent for paying prizes.

Article 35. Management of lottery tickets winning prizes

1. Lottery tickets after paying prizes must be perforated or stamped of having been paid prizes on ticket so as to ensure that they are not misused for receiving prizes.

2. The winning lottery tickets must be stored together with their stubs or stored parts (for tickets which their stubs or stored parts are required to be printed) in order to ensure requirement of comparison, defining the accuracy, honesty of the lottery ticket having paid prizes.

3. Time limit for storage of the winning lottery tickets is not less than 05 years after time limit for paying prizes expired.

4. Procedures for destruction of the winning lottery tickets comply with regulations of Law on accounting and the Government’s Decree No. 129/2004/ND-CP dated 31/5/2004 detailing and guiding implementation of a number of articles of Law on accounting applied to business operation and documents amending and supplementing, replacing (if any).

Chapter 6

LOTTERY BUSINESS ENTERPRISES

Article 36. The operational model and the management organization structure

The operational model and the structure of management and organization of lottery companies, Vietnam computing lottery one-member limited liability company shall comply with regulations in the Decree No. 30/2007/ND-CP and clause 9 Article 1 of the Decree No. 78/2012/ND-CP

Article 37. Conditions and standards for leader and manager title

Conditions and standards for titles of leaders and managers of lottery companies, Vietnam computing lottery one-member limited liability company are provided by owners and inscribed in their charters of organization and operation but must meet the following basic conditions:

1. For chairmen of companies, General Directors or Directors:

a. Being Vietnamese citizens, permanently residing in Vietnam;

b. Having fully civil act capability as prescribed by law;

c. Educated from university level or higher specialized in economy, finance, banking, economic law, business administration;

d. Having actual experiences in managing activities of enterprises;

dd. Not being subjects banned from holding positions of managing and executing enterprises as prescribed at points b, c, dd, e and g clause 2 Article 13 of Law on enterprises;

e. Standards on healthy, morality, and other standards specified in charter of lottery companies that are approved by owners.

2. For controllers:

a. Being Vietnamese citizens, permanently residing in Vietnam;

b. Having fully civil act capability as prescribed by law;

c. Having specialized qualification or professional experiences on accounting, audit or specialized qualification and actual experiences in lottery business operation of lottery companies or other standards, conditions specified in charter of lottery companies;

d. Having actual experiences in managing activities of enterprises;

dd. Not having spouses, biological father or mother, adoptive father or mother, children, adopted children, biological sisters or brothers holding positions of General Directors, Directors, Chiefs accountant, controllers, cashiers at lottery companies.

e. Not being concerned persons of members of Members Council, chairmen of companies, General Directors or Directors, persons competent to direct appoint the controllers;

g. Standards on healthy, morality, and other standards specified in charter of lottery companies that are approved by owners.

3. These standards are applied to appointment of manager positions of lottery companies after this Circular comes into effect.

Article 38. Eligibility certificate of  lottery business

1. The Ministry of Finance shall issue Certificate of eligibility for lottery business for lottery companies, Vietnam computing lottery one-member limited liability company.

2. Certificate of eligibility for lottery business contains the following principal contents:

a. Name and address of enterprise;

b. The legal representative of enterprise;

c) Type of products permitted to business;

d. Methods of product distribution;

dd. Areas of lottery business;

e. Valid duration of Certificate of business eligibility;

g. Provisions on complying with regimes on management and tax obligations in lottery business operation.

Article 39. Process procedures for granting  of initial eligibility certificate for lottery business

1. Dossier applying for granting  of initial eligibility certificate for lottery business:

a. Written request for grant of Certificate of business eligibility of lottery company, in which clearly states types of product requesting for being permitted to business;

b. Opinions of owner about grant of Certificate of business eligibility;

c. Plan on organizing business operation of lottery company;

d. Decision on establishment of enterprise (authenticated copy);

dd. Enterprise registration certificate (authenticated copy);

e. Operational charter of lottery companies that are approved by owners (copy);

g. The audited financial statement of lottery company in the last year.

2. Time limit for grant of Certificate of eligibility for lottery business

Time limit for grant of Certificate of eligibility for lottery business is 15 working days, after the Ministry of Finance receives full valid dossier as prescribed. In case of refusal for grant of Certificate of eligibility for lottery business, the Ministry of Finance shall have written notice clearly stating reason thereof.

Article 40. Adjustment and re-grant of eligibility certificate for lottery business

1. Cases of adjusting certificate of eligibility for lottery business.

a. Change of name or address of enterprise;

b. Change of the legal representative of enterprise;

c) Change of type of products permitted to business;

d. Change of methods of product distribution;

e. Change of areas of lottery business.

2. Cases of re-granting certificate of eligibility for lottery business.

a. Certificate of eligibility for lottery business is lost, corrupted, misplaced;

b. Certificate of eligibility for lottery business due to other reason is not able to use.

3. Dossier of adjustment and re-grant of certificate of eligibility for lottery business.

a. Written request for adjustment, re-grant of Certificate of eligibility for lottery business of lottery company, in which clearly states reason of adjustment, re-grant;

b. Opinions of owner about adjustment, re-grant of Certificate of eligibility for lottery business;

c. The newest enterprise registration certificate (authenticated copy).

4. Duration for adjustment, re-grant of Certificate of eligibility for lottery business is 10 working days, after the Ministry of Finance receives full valid dossier.

Article 41. Withdrawal of eligibility certificate for lottery business

1. Lottery companies, Vietnam computing lottery one-member limited liability company may be withdrawn Certificate of eligibility for lottery business in the following cases:

a. Being dissolved or bankrupted as prescribed by law;

b. Implementing division, separation, consolidation or merger so as not be able to implement the lottery business operation or being withdrawn Certificate of Business registration;

c. Conducting violations in lottery business operation and being sanctioned by withdrawal of certificate of eligibility for lottery business as prescribed by law on handling administrative violations in field of lottery business.

2. The Ministry of Finance shall publicize decisions on withdrawal of Certificate of eligibility for lottery business on means of mass media.

Chapter 7

REGIME OF INFORMATION, PROMOTION AND VIOLATIONS HANDLING

Article 42. Information, advertisement and promotion in lottery business operation

1. Information and advertisement

a. Lottery companies, Vietnam computing lottery one-member limited liability company may provide information of and advertise lottery as prescribed in Articles 18, 19, 20 and 21 of the Decree No. 30/2007/ND-CP and current regulations of law.

b. Advertisement of Lottery companies and Vietnam computing lottery one-member limited liability company concentrate on the following principal contents:

- Social welfare works that are invested from lottery revenue source;

- Social and charity activities that are implemented by lottery companies;

- Warnings to players to control the extent of participation in winning lottery prizes.

2. Lottery promotion

Strictly prohibiting the lottery companies, Vietnam computing lottery one-member limited liability company and relevant organizations and individuals to supply lottery promotions under forms:

a. Reducing sale price of lottery tickets;

b. Giving lottery tickets without charge collection;

c. Giving gifts under form of kinds, money or goods purchase coupons or service use coupons which allow customers to enjoy one or several definite benefits;

d. Increasing the value of prizes in comparison with the rules for lottery prize participation and rate of prize payment as prescribed by State;

dd. Selling lottery tickets enclosed with participation in programs winning prizes;

e. Other forms of promotion.

Article 43. Violations handling in lottery business operation

1. Violations in lottery business operation, depend on nature, seriousness, shall be handled administratively or prosecuted criminal liability as prescribed by law.

2. Handling of administrative violations in lottery business operation shall comply with regulation of law on sanction of administrative violations in lottery business.

Chapter 8

ORGANIZATIONS RESPONSIBILITIES

Article 44. Responsibilities of the Ministry of Finance

1. To examine compliance with policies, regimes on issuing lottery of lottery companies in lottery business as prescribed by law and provisions in this Circular.

2. To provide for limit of quantity, value of issued tickets or control the minimum average rate of Traditional lottery consumption in each period as prescribed in Article 10 of this Circular.

3. To provide for areas for lottery business of lottery companies as prescribed in Article 13 of this Circular.

4. To provide for schedules of traditional lottery draw of lottery companies or the regional lottery councils as prescribed in clause 1 Article 23 of this Circular.

5. To implement other tasks to manage lottery business operation as prescribed in Article 31 of the Decree No. 30/2007/ND-CP.

Article 45. Responsibilities of People’s Committees of central-affiliated cities and provinces

1. To exercise rights and obligations of owners to lottery companies as prescribed by law.

2. To examine, supervise lottery business operation as prescribed in this Circular and relevant legal documents.

3. To coordinate with the Ministry of Finance in directing concerned departments and sectors to guide lottery companies in elaborating the annual plan on collection and remittance to the State budget based on principle of lottery business operation specified in clause 1, Article 1 of the Decree No. 78/2012/ND-CP, orienting development of lottery market as notified by the Ministry of Finance for each period and provisions in this Circular.

Article 46. Responsibilities of lottery companies, Vietnam computing lottery one-member limited liability company

1. To comply with full provisions in this Circular and other regulations of law related to lottery business.

2. To take responsibilities for management, conservation of capital and properties as prescribed by law.

3. To take responsibilities for elaborating and promulgating processes on relevant professional management, regulations on internal expenditure ensuring transparence, accuracy, thrifty, effectiveness and complying fully with provisions of State in organizing lottery business operation.

Chapter 9

IMPLEMENTATION ORGANIZATION

Article 47. Transitional provisions

1. For organizations issuing lottery tickets which issuing types of lottery product other than products specified in Article 6 of this Circular must terminate such issuance earlier January 01, 2014.

2. For organizations issuing lottery tickets which implement time of prize draw contrary to time specified in clause 2 Article 24 of this Circular and performing, signing the contracts of lottery agent with subjects improper with provision in Article 16 of this Circular, they must adjust time of the prize draw and re-make contracts of lottery agent for conclusion from January 01, 2014 or earlier.

3. Organizations issuing lottery tickets which issuing types of lottery product with price of tickets contrary to the price of tickets specified in Article 7 of this Circular must adjust the price of tickets from October 01, 2013 or earlier.

Article 48. Implementation provisions

1. This Circular takes effect in October 01, 2013.

2. This Circular replaces the Circular No. 65/2007/TT-BTC dated 18/6/2007 detailing the Decree No. 30/2007/ND-CP; Article 12 of the Circular No. 131/2009/TT-BTC dated 29/6/2009 amending and supplementing a number of Article of the Circular No. 65/2007/TT-BTC dated 18/6/2007.

3. In the course of implementation, any arising problems should be reported timely to the Ministry of Finance for consideration and settlement.

For the Minister of Finance

Deputy Minister

Tran Xuan Ha