Decree 394/2026/ND-CP prescribing financial management mechanism for lottery businesses

DECREE

Prescribing some specific contents on the financial management mechanism applicable to lottery businesses

Pursuant to the Law on Organization of the Government No. 63/2025/QH15;

Pursuant to the Law on Management and Investment of State Capital in Enterprises No. 68/2025/QH15;

At the proposal of the Minister of Finance;

The Government promulgates this Decree prescribing some specific contents on the financial management mechanism applicable to lottery businesses.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes some specific contents on the financial management mechanism applicable to lottery businesses in Vietnam.

Article 2. Subjects of application

1. Lottery businesses, including:

a) Lottery single-member limited liability companies of provinces and cities;

b) Vietnam Computerized Lottery Single-Member Limited Company (below referred to as Vietlott).

2. Agencies representing the owner at lottery businesses.

3. Other organizations and individuals involved in the financial management and operational effectiveness assessment of lottery businesses.

Chapter II

SPECIFIC PROVISIONS

Article 3. Revenue

1. Revenues of a lottery business include: revenues from lottery business activities, revenues from other business activities, revenues from financial operations and other revenues as prescribed by law.

2. Particularly for computerized lottery products, if winners fail to claim jackpots within the prescribed time limit, lottery businesses may account such jackpots as other revenues.

Article 4. Expenses

Specific expenses of lottery businesses include:

1. Expense for prize payment:

a) For traditional lottery, manual lotto and instant lottery products, the prize payment expense is the amount of money paid to winners for winning lottery tickets in accordance with law.

Particularly for traditional lottery products issued under the joint-issuance mechanism, the prize payment expense of a lottery business shall include the prize payment expense paid for winning lottery tickets with prizes to be paid by the lottery business under the Operation Regulation of the concerned Regional Lottery Council; and the prize payment expense which is allocated to the lottery business according to the allocation ratio for winning lottery tickets with prizes to be jointly paid by the lottery business and the Regional Lottery Council in accordance with the latter’s Operation Regulation.

b) For computerized lotto products, the prize payment expense is the prize amounts payable to winners for winning lottery tickets and the value of jackpots rolled over to the next draw in accordance with the law on lottery business.

2. Expense for payment of agent commissions to lottery agents:

a) Lottery agent commission means the amount of money paid by a lottery business to a lottery agent at a percentage of the value of lottery tickets sold. The Ministry of Finance shall specify the maximum lottery agent commission rate for each period.

b) Lottery businesses shall be responsible for:

Specifying the lottery agent commission rate in the lottery agency contract signed with the lottery agent;

Paying lottery agent commissions after completing the confirmation of the quantity of lottery tickets sold by the lottery agent during the period and the lottery agent has fully performed the financial obligations specified in the lottery agency contract;

Withholding the tax payable by individual lottery agents before making payments to lottery agents in accordance with the tax laws.

3. Prize payment authorization expenses:

a) Prize payment authorization expenses are amounts paid by lottery businesses to lottery agents at a percentage of the prize amounts paid by the agents to prize winners, as specified in the agency contracts.

b) The Ministry of Finance shall prescribe the maximum prize payment authorization expense rate and provide guidance on the dossiers for making payments of prize payment authorization expenses to lottery agents.

Lottery businesses shall specify the prize payment authorization expense rate in the lottery agency contracts signed with lottery agents;

c) Lottery agents may not collect any charges from prize winners.

4. Expenses for organization of lottery draws and lottery oversight:

a) Expenses for organization of lottery draws include venue rental and other expenses for procurement or hire of equipment or services to serve lottery drawings.

For cases of issuance of traditional lottery tickets under the joint-issuance mechanism, lottery businesses entering into the joint-issuance agreement shall together organize lottery drawings and the expense for organization of lottery drawings in a period shall be allocated to each of these lottery businesses based on the proportion of lottery tickets received for sale by such business to the total number of issued tickets in the region in such period. The determination of specific expenses must comply with the Operation Regulation of the Regional Lottery Council.

b) Expenses for payment of remuneration to the Lottery Oversight Councils (excluding representatives of lottery businesses). The remuneration rate shall be determined on the principles of compliance with laws, thrift and efficiency, consistency with the time and content of the work performed, and enhancement of the responsibility of members in performing their oversight work.

The People's Committees of provinces and cities shall approve the remuneration rates for the Lottery Oversight Councils.

5. Expense in support of the prevention of illegal lottery result-based gambling and the counterfeiting of lottery tickets:

a) Expense in support of the prevention of illegal lottery result-based gambling and the counterfeiting of lottery tickets shall be used to provide direct support to the public security and relevant agencies in the locality or in the area where business activities are conducted for the investigation, discovery and handling of cases involving illegal lottery result-based gambling and the counterfeiting of lottery tickets, ensuring the following principles:

Being consistent with the financial capacity of the lottery business.

Payment shall be made based on copies of court judgments or decisions on sanctioning of administrative violations and fine payment receipts.

Public security agencies and related agencies shall distribute support money to units and individuals having recorded achievements in such work in a public and transparent manner, depending on the complexity of cases, number of persons and units engaged in investigation, and duration of investigation.

b) The Ministry of Finance shall specify the rates of support for prevention of illegal lottery result-based gambling and counterfeiting of lottery tickets.

c) Based on actual conditions and rates of support as prescribed, lottery businesses shall propose owner-representing agencies to approve specific expense items and levels so as to ensure that support will be provided to proper subjects.

6. Expenses for setting aside the prize payment risk reserve fund:

a) Entities subject to and time of setting aside the reserve fund:

Entities subject to setting aside the reserve fund: Lottery products applying the fixed prize payment method in accordance with law on lottery business.

Time of setting aside the reserve fund: At the end of the fiscal year (December 31 of the calendar year).

b) Conditions for setting aside the reserve fund: At the time of setting aside the reserve fund, the setting aside of the prize payment risk reserve fund must fully satisfy the following conditions:

The lottery businesses suffer no losses;

The lottery business apply a prize payout ratio lower than that planned under the law on lottery business.

The actual prize payout ratio shall be determined as follows:

For Vietlott, the total taxable revenue arising in a period is exclusive of revenue from sale of lottery tickets in previous ticket selling periods for which lottery drawings have not yet been organized.

The total balance of the prize payment risk reserve fund of a lottery business at the time of setting aside the reserve fund must not exceed 2% of the total tax-inclusive revenue of all lottery products eligible for setting aside the reserve fund for lottery businesses operating in the Southern region and Vietlott, and 10% for other lottery businesses.

c) The setting aside rate applicable to a lottery product shall be determined as follows:

d) Use of the prize payment risk reserve fund:

Lottery businesses shall use the prize payment risk reserve fund to pay prizes when the actual prize payout ratio during the period is higher than the planned prize payout ratio;

In case the prize payment risk reserve fund is insufficient to cover the payment, the remaining actual prize payment shall be included in business expenses;

The unused balance of the prize payment risk reserve fund shall be carried forward to the subsequent year for continued use.

7. Expenses for lottery tickets:

a) Expenses for printing lottery tickets shall be determined based on the money amounts actually paid to printing establishments, expenses for transportation, loading and unloading and storage, and lawful surcharges (if any) or contributions to cover lottery ticket printing expenses in accordance with regulations of the Regional Lottery Council based on the economic contract between lottery businesses and printing establishments;

b) Expenses for printing playslips, buying printing papers and ink and other expenses related to computerized lotto tickets must comply with actual paid prices under economic contracts signed between lottery businesses and suppliers;

c) In case lottery businesses print lottery tickets by themselves, ticket printing expenses are reasonable and valid expenses accounted as businesses’ general expenses.

8. Expenses for making public information on lottery tickets, lottery drawings and draw results:

a) Expenses for making public information on lottery tickets, lottery drawings and draw results are expenses for publishing information on lottery draws and draw results through mass media, and expenses for printing leaflets on prize payment rules and draw results to serve customers and lottery agents;

b) These expenses shall be paid based on economic contracts and valid invoices and vouchers in accordance with the tax laws.

9. Expenses for making contributions to Regional Lottery Councils:

a) The contribution rate for the operation of the Regional Lottery Councils shall be prescribed by the Ministry of Finance;

b) All spending items must have reasonable and valid invoices;

c) For spending items managed by Regional Lottery Councils, spending levels must be approved by such councils. Chairpersons of Regional Lottery Councils shall take responsibility for the lawfulness and validity of spending items;

d) At the end of a fiscal year, these expenses must be finalized and made public in the Regional Lottery Councils. The remainder may be carried forward for further use for proper purposes as prescribed.

Article 5. Profit distribution

1. Lottery businesses that have been fully provided with charter capital in accordance with the decision of the owner-representing agency shall not set aside funds for development investment.

2. Lottery businesses shall not use after-tax remaining profits and their reward and welfare funds to pay bonuses or provide additional support for lottery agent commissions exceeding the maximum levels prescribed by laws.

Article 6. Capital for outside investment of lottery businesses

Lottery businesses may only make outside investments in business lines directly related to lottery business activities.

Chapter III

RESPONSIBILITIES OF RELATED AGENCIES

Article 7. Responsibilities of the Ministry of Finance

1. Provide guidance on the contents assigned under this Decree; provide guidance on the specific financial reporting regime applicable to lottery businesses.

2. Perform the functions of the owner-representing agency for Vietlott as assigned and in accordance with laws.

3. Assess compliance with regimes and policies to improve the financial management mechanism applicable to lottery businesses within its authority or submit to the competent authority for amendment and supplementation of the regulations on financial management applicable to lottery businesses prescribed in this Decree.

Article 8. Responsibilities of provincial-level People’s Committees

1. Exercise the rights and perform the obligations of the owner-representing agency for lottery businesses established by the People's Committees of provinces and cities in accordance with laws.

2. Approve the levels of remuneration paid to the Lottery Oversight Councils’ members and support for prevention of illegal lottery result-based gambling and issuance of fake lottery tickets under this Decree.

3. Inspect, supervise or direct local competent agencies to comprehensively examine, inspect and supervise lottery businesses’ observation of the financial management mechanism in accordance with this Decree.

Article 9. Responsibilities of lottery businesses

1. Comply with the provisions on the financial management mechanism under this Decree; implement the specific financial reporting regime in accordance with the guidance of the Ministry of Finance.

2. Be subject to inspection, examination, audit and supervision by competent state agencies regarding compliance with the provisions on financial management and the specific financial management mechanism prescribed in this Decree.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 10. Effect

1. This Decree takes effect on December 08, 2026.

2. Annul Decree No. 122/2017/ND-CP dated November 13, 2017, prescribing some specific contents on the financial management mechanism and operational effectiveness assessment applicable to lottery businesses, the stock exchanges and the Vietnam Securities Depository.

Article 11. Transitional provisions

For lottery businesses whose prize payment risk reserve fund balances exceed the maximum balances permitted to be set aside under this Decree, the difference shall be accounted for as other revenues of the lottery businesses at the end of fiscal year 2026, and corporate income tax shall be paid in accordance with law.

Article 12. Responsibility for implementation

The Minister of Finance, the Chairpersons of the People's Committees of provinces and cities; the Members' Councils, Chairpersons, General Directors and Directors of lottery businesses; and relevant organizations and individuals shall be responsible for implementing this Decree./.