Decision No. 32/2003/QD-TTg dated February 27, 2003 of the Prime Minister promulgating the regulation on business in prize-winning electronic games for foreigners

DECISION

PROMULGATING THE REGULATION ON BUSINESS IN PRIZE-WINNING ELECTRONIC GAMES FOR FOREIGNERS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of December 25, 2001;

Pursuant to the 1996 Law on Foreign Investment in Vietnam, the 2000 Law amending and supplementing a number of articles of the Law on Foreign Investment in Vietnam and the Government's Decree No. 24/2000/ND-CP of July 31, 2000 detailing the implementation of the Law on Foreign Investment in Vietnam;

Pursuant to the June 22, 1994 Law on Domestic Investment Promotion, the May 20, 1998 Law amending and supplementing the Law on Domestic Investment Promotion; and the June 12, 1999 Law on Enterprises;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on business in prize-wining electronic games for foreigners.

Article 2.- This Decision takes effect 15 days after it is published on the Official Gazette.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of agencies attached to the Government, the presidents of the provincial/municipal People's Committees and concerned units shall have to implement this Decision.

REGULATION

ON BUSINESS IN PRIZE-WINNING ELECTRONIC GAMES FOR FOREIGNERS
(Issued together with Decision No. 32/2003/QD-TTg of February 27, 2003 of the Prime Minister)

Chapter I

GENERAL PROVISION

Article 1.- Definition of the prize-winning electronic game business:

The prize-winning electronic game business means the provision of services by enterprises for the play of games between people and electronic machines used for the games and set up with automatic prize-awarding programs (hereinafter referred to as prize-wining games for short).

Article 2.- Scope and objects of application:

1. This Regulation shall apply to prize-winning electronic game business activities of enterprises set up under Vietnamese laws.

2. All business forms which are contrary to the definition in Article 1 shall not be governed by this Regulation.

Article 3.- Interpretation of terms:

In this Regulation, the following phrases shall be construed as follows:

- "Prize-winning recreation and entertainment spots for foreigners" mean the spaces arranged with electronic machines used for the games and other equipment in service of players (hereinafter referred to as recreation spots).

- "Prize-awarding percentages" mean the percentages between the prize money received by the players and the amounts they use for the games.

- "Money" comprises coins, banknotes and assorted conventional money (called collectively to as counter) having a certain par value against Vietnamese currency.

Chapter II

CONDITIONS ON PRIZE-WINNING ELECTRONIC GAME BUSINESS ACTIVITIES

Article 4.- Investment licenses and business registration certificates:

Enterprises wishing to conduct prize-winning electronic game business activities shall have to submit dossiers of application for permission to the Ministry of Planning and Investment and shall be allowed to conduct prize-winning electronic game business activities only after they are granted investment licenses (for foreign-invested enterprises) or business registration certificates (for domestic enterprises). For foreign-invested enterprises, the investment licenses shall also be as valid as business registration certificates.

Article 5.- General conditions for being granted permits:

1. The provision of prize-winning electronic games is a conditional business, which is not encouraged for development.

2. The investment licenses and business registration certificates (hereinafter referred collectively to as permits) for prize-winning electronic games shall only be considered for granting to enterprises meeting one of the following conditions:

- Enterprises engaged in hotel business in localities where large numbers of foreigners (tourists, investors') regularly stay, where exist hotels of 4-star or higher grades (for Hanoi and Ho Chi Minh City) or 3-star or higher grades (for other localities frequented by many foreign tourists) and have areas used exclusively as recreation and entertainment spots.

- Enterprises dealing in recreation and entertainment areas and tourist sites of large scale, having exclusive areas for use as recreation and entertainment spots suitable to the local conditions, and being proposed by the People's Committees of the provinces or centrally-run cities.

3. Enterprises, which have been granted permits for prize-winning electronic game activities before the issuance of this Regulation, shall be allowed to continue their business activities without having to carrying out procedures of application for the re-granting thereof.

4. Permits shall not be granted to enterprises to merely do business in prize-winning electronic games.

Article 6.- Specific conditions for enterprises to be considered for the granting of permits:

- Satisfying conditions prescribed in Clause 2, Article 5 of this Regulation.

- Having security forces and equipment so as to be able to ensure the absolute security and safety in the recreation spots as well as areas managed by the enterprises.

- Having counters for checking passports, laissez-passers and other papers of laissez-passers’ value of players before they enter recreation spots.

- Having conventional money (counters) produced on the enterprises' order and registered at the Finance Services and police departments of the provinces or cities where the enterprises are allowed to do business in prize-winning games.

- The electronic equipment used for players must be of good quality, ensuring that there is no error as compared to the programs already set up. The prize-awarding percentages set up in the machines must be registered with the provincial/municipal Finance Services of the localities where the enterprises are allowed to do business in prize-wining games.

Article 7.- Subjects allowed to participate in prize-winning electronic games at recreation spots:

Subjects allowed to participate in prize-winning electronic games at recreation spots shall include only foreigners and overseas Vietnamese (hereinafter referred collectively to as players), who voluntarily abide by this Regulation as well as provisions and internal rules of the recreation spots.

Other subjects are strictly prohibited to participate in prize-winning electronic games in any forms.

Article 8.- Subjects allowed to enter and leave recreation spots:

- Players defined in Article 7 of this Regulation.

- Those who are involved in the management, administration and protection of recreation spots.

- Officials of State management agencies when they are assigned by competent bodies the tasks of inspecting, examining and supervising the operation of recreation spots.

Article 9.- Security guards of recreation spots shall have the rights to:

- Prohibit people other than subjects defined in Article 8 of this Regulation to enter recreation spots.

- Isolate and take out of recreation spots subjects detected as having committed deceitful acts, employed fraudulent tricks or carried out illegal or disturbing activities.

- Not to allow drunkards or mental disease patients to enter recreation spots.

Article 10.- Rights and obligations of subjects allowed to enter recreation spots:

All subjects other than the managerial, administrative and security staff of recreation spots, before entering recreation spots, shall have to deposit weapons, video cameras, cameras and sound recorders at the luggage-keeping rooms and produce their passports, laissez-passers or papers issued by competent agencies certifying that they are performing official duties related to the inspection, examination and supervision thereof at the checking counters.

Article 11.- Operation duration:

Recreation spots shall be allowed to operate all days in the year.

Article 12.- Tax and financial regime:

The prize-winning electronic games shall be liable to special consumption tax. Enterprises providing prize-winning electronic games shall pay special consumption tax, enterprise income tax and other taxes under the Finance Ministry's guidance.

The Ministry of Finance shall specify the financial regime, reward regime and assorted taxes applicable to these service business activities.

Chapter III

STATE MANAGEMENT

Article 13.- Appraisal and granting of investment licenses and business registration certificates:

The State shall exercise the uniform management over the granting of investment licenses and business registration certificates for prize-winning electronic game business activities; the Ministry of Planning and Investment shall be the agency in charge of appraising and submitting projects on prize-winning electronic game business to the Prime Minister for consideration and decision on the granting of investment licenses or business registration certificates therefor.

The prize-winning electronic games business activities are sensitive and only constitute a business operation supplemented to the main business operations of enterprises, therefore, the number of licensed units must be limited.

Article 14.- State management over the prize-winning game business activities:

The presidents of the provincial-level People's Committees shall assume the prime responsibility and coordinate with concerned ministries and branches in strictly managing the prize-winning electronic game business activities of enterprises located in their respective localities.

Article 15.- Inspection and examination:

The inspection and examination of prize-winning game business activities shall comply with the following stipulations:

1. The regular and specialized inspection shall be carried out no more than once a year in an enterprise; each drive shall not exceed 7 days. The functional agencies shall have to draw up and send plans on regular and specialized inspection to the Ministry of Planning and Investment and the People's Committees of the provinces and centrally-run cities where recreation spots exist for coordinated implementation. The decision on the inspection of an enterprise shall be sent to that enterprise at least 7 days before the inspection.

2. Irregular inspection and examination: When enterprises show signs of violating this Regulation or Vietnamese laws, the presidents of the provincial/municipal People's Committees or the ministers of specialized management ministries shall issue decisions on irregular inspection and/or examination of these enterprises.

3. If enterprises breach Article 7 of this Regulation, they shall be immediately suspended from business activities and handled according to law provisions.

4. Those who issue inspection and/or examination decisions in contravention of law provisions or abuse the inspection and/or examination to seek their own benefits or harass enterprises for bribes shall, depending on the seriousness of their violations, be disciplined or examined for penal liability; if damage is caused, compensation therefor must be made according to law provisions.

Enterprises may lodge complaints and initiate lawsuits against unlawful decisions and acts of State officials and employees according to the law provisions on complaints and denunciation.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 16.- Enterprises licensed to deal in prize-winning electronic games shall base themselves on this Regulation to draw up internal management rules of their own recreation spots, which clearly specify personnel and financial management, security assurance, measures of settling the relationships between players and enterprises as well as managers of recreation spots'

Article 17.- The directors or general directors of enterprises shall have to bear responsibility before the Management Boards or investors, and the Vietnamese law for all operations of recreation spots under their enterprises' management. When they breach this Regulation, depending on the seriousness of their violations, the licensing agencies may issues decisions to definitely or indefinitely suspend the operation of recreation spots; the State management agencies, according to their functions, may issue decisions on administrative sanctions or penal liability examination according to law provisions.

Article 18.- The Ministry of Planning and Investment shall coordinate with the provincial-level People's Committees, the Ministry of Culture and Information, the Ministry of Finance, the Ministry of Public Security, the Ministry of Trade and the Tourism Administration in guiding, inspecting and supervising the observance of this Regulation by recreation spots and timely settle problems for enterprises. Enterprises dealing in prize-winning electronic games are obligated to observe this Regulation and create favorable conditions for State management agencies in the process of inspecting and supervising their activities, and be subject to such inspection and supervision.

Article 19.- Should any problems arise in the course of implementation, the Ministry of Planning and Investment shall coordinate with concerned agencies in summing-up and submitting opinions to the Prime Minister for consideration of, and decision on, amendment and supplementation.