Conditions to Become a Computerized Lottery Agent in Vietnam

I want to set up a computerized lottery agency — what conditions and standards must I meet?

1. What is a computerized lottery agent?

Clause 1 of Article 15 of Circular 36/2019/TT-BTC defines as follows:

A computerized self-selected lottery agent is an organization or individual that signs a contract with a computerized lottery company to sell tickets and pay prizes to customers when they win. A computerized self-selected lottery agent may sign contracts with organizations and individuals to sell computerized lottery tickets in the form of selling at the correct price and receiving remuneration from agent commissions. These organizations and individuals are also considered to be conducting agency activities of the computerized self-selected lottery. A computerized self-selected lottery agent is responsible for notifying the computerized lottery company of the organizations and individuals that sign ticket-sales contracts to serve tax management purposes.

2. What are the conditions for becoming a computerized lottery agent?

Article 15 of Circular 36/2019/TT-BTC provides that the conditions for being a computerized lottery agent follow Clause 2 of Article 12 of Decree No. 30/2007/ND-CP, as amended by Clause 1 of Article 4 of Decree 151/2018/ND-CP and supplemented by Clause 6 of Article 1 of Decree 78/2012/ND-CP, as follows:

– Being a Vietnamese citizen permanently residing in Vietnam; if an organization, being an economic organization established and operating lawfully in Vietnam;

– Having a form of payment guarantee as prescribed in Article 13 of this Decree to secure payment obligations to the lottery business enterprise.

– Officers and employees working at the lottery business enterprise; spouses, fathers, adoptive fathers, mothers, adoptive mothers, children, adopted children, full siblings and adopted siblings of the Chairman, General Director, Director, Deputy General Directors, Deputy Directors, Chief Accountant and heads and deputy heads of professional departments and divisions of the lottery business enterprise may not be lottery agents.”

In addition, the following organizations and individuals may not be computerized self-selected lottery agents:

– Officers and employees working at organizations that jointly operate the computerized self-selected lottery system with the computerized lottery company (if any);

– Spouses, fathers, adoptive fathers, mothers, adoptive mothers, children, adopted children, full siblings and adopted siblings of individuals holding titles from deputy heads of professional departments and divisions upwards of organizations that jointly operate the computerized self-selected lottery system with the computerized lottery company (if any);

– Economic organizations with capital contributions from spouses, fathers, adoptive fathers, mothers, adoptive mothers, children, adopted children, full siblings and adopted siblings of individuals holding titles from deputy heads of professional departments and divisions upwards of organizations that jointly operate the computerized self-selected lottery system with the computerized lottery company (if any);

3. What standards must be met to become a computerized lottery agent?

Clause 3 of Article 15 of Circular 36/2019/TT-BTC provides the standards for computerized lottery agents as follows:

– Having a stable business location with sufficient floor area, facilities and other necessary conditions to install the computerized self-selected lottery ticket sales system;

– Having staff qualified to skillfully operate the computerized self-selected lottery ticket sales system, confirmed or certified by the computerized lottery company;

– Having a written commitment to fully comply with the regulations of the computerized lottery company when becoming a computerized self-selected lottery agent.

4. Payment of computerized lottery ticket sales and guarantee of payment obligations of computerized lottery agents

Clause 5 of Article 15 of Circular 36/2019/TT-BTC provides as follows:

– Payment of computerized self-selected lottery ticket sales:

+ Computerized self-selected lottery agents must fully pay the amount of tickets sold to the computerized lottery company;

+ Where the computerized lottery company allows the agent to owe ticket sale proceeds, the maximum debt period is fifteen (15) days from the draw date. Based on actual conditions, issuance characteristics and the number of draws of each computerized lottery product, the computerized lottery company specifically decides the deadline for agents to complete payment of ticket purchases, ensuring it does not exceed the above-mentioned period;

+ When the ticket sale payment deadline arrives and the computerized lottery agent fails to pay or does not fully pay the computerized lottery company under the signed agency contract, the computerized lottery company has the right to suspend the issuance of lottery tickets of such lottery agents and apply necessary measures to recover ticket sale proceeds in accordance with the law on secured transactions, handling of security assets and other relevant legal provisions.

– Guarantee of payment obligations of computerized lottery agents:

+ The computerized lottery company must require the computerized lottery agent to have mortgaged assets to secure payment obligations;

+ Measures to guarantee payment obligations of computerized lottery agents to the computerized lottery company are implemented under Article 13 of Decree 30/2007/ND-CP dated March 1, 2007 of the Government on lottery business, amending, supplementing and replacing documents (if any), and the law on secured transactions;

+ The level of payment obligation guarantee of the computerized lottery agent to the computerized lottery company is specifically as follows:

++ For computerized lottery ticket agents that have made a commitment on ticket sales revenue with the computerized lottery company but have not yet issued computerized lottery tickets, the minimum payment obligation guarantee level is determined as the committed ticket sales revenue minus (-) the lottery agent commission entitled under the regulations;

++ For computerized lottery ticket agents with actual ticket sales revenue determined, the payment obligation guarantee level is determined as 100% of the average actual ticket sales revenue of the immediately preceding three (03) weeks minus (-) the lottery agent commission entitled under the regulations;

+ The order and procedures for registering secured transactions for assets used to guarantee payment obligations are carried out in accordance with the law on secured transactions;

+ The computerized lottery company must assess the value of assets used to guarantee payment obligations at the time of receiving the assets; periodically re-assess or re-assess when necessary. For assets being real estate, movable property, etc., where the computerized lottery company lacks the capacity to assess the value, the computerized lottery company may hire organizations with valuation functions to determine the value of the assets used for payment guarantee. Asset valuation costs are included in the operating costs of the computerized lottery company.

Therefore, to establish a computerized lottery agency, you need to meet the prescribed conditions and standards, then sign an agency contract in accordance with the law.