Regulations on Administration of Lottery
Order of State Council No.554
May 4, 2009
The Lottery Regulations, which were adopted at the 58th executive meeting of the State Council on 22 April 2009, are hereby promulgated and shall come into force on 1 July 2009.
Premier Wen Jiabao
Lottery Regulations
Chapter 1 General Provisions
Article 1 These Regulations are formulated to tighten the administration of lotteries, regulating the development of lottery market, maintaining the order of lottery market, protecting the legitimate rights and interests of lottery players and promoting the development of social welfare cause.
Article 2 For the purpose of these Regulations, "lottery tickets" mean the tickets permitted to be issued and legally sold by the state for the purpose of raising social welfare funds to promote social welfare development, and available for natural persons to purchase on a voluntary basis for the chance of winning a prize according to the specific rules.
Neither principal nor interest will be returned or paid to buyers of lottery tickets.
Article 3 The State Council gives special permission for issuance of welfare and sports lottery tickets. Issuance of other lottery tickets without the special permission of the State Council is prohibited. Issuance or sales of overseas lottery tickets in the mainland China is prohibited.
Article 4 The issuance, sales and drawings of lottery tickets shall follow the principle of openness, justice, fairness and faithfulness.
Article 5 The financial department under the Sate Council shall be in charge of the nationwide supervision and administration of lotteries. The civil affairs department and the administrative department for physical culture and sports under the State Council shall be in charge of the nationwide administration of welfare and sports lotteries respectively according to their own duties.
The financial departments of people's governments of various provinces, autonomous regions, and municipalities directly under the Central Government shall be in charge of the supervision and administration of lotteries within the area under their respective administration jurisdiction. The civil affairs departments and administrative departments for physical culture and sports of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall be in charge of the administration of welfare and sports lotteries according to their own duties within the area under their respective administrative jurisdiction.
The public security organs of the people's governments at or above county level and the departments for industry and commerce at or above county level shall, within the scope of their own functions, lawfully investigate and deal with illegal lotteries and maintain the order of the lottery market.
Chapter 2 Administration on Issuance and Sales of Lottery Tickets
Article 6 The welfare lottery issuing agencies and sports lottery issuing agencies legally established by the civil affairs department and the administrative department for physical culture and sports under the State Council respectively (hereinafter collectively as the "lottery issuing agencies") shall be in charge of the nationwide issuance and sales of welfare and sports lottery tickets respectively.
The welfare lottery sales agencies and sports lottery sales agencies legally established by civil affairs departments and administrative departments for physical culture and sports of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government respectively (hereinafter collectively as "lottery sales agencies") shall be in charge of the sales of welfare and sports lottery tickets respectively within the area under their respective administrative jurisdiction.
Article 7 Applications by lottery issuing agencies for instituting or ceasing any specific type of welfare or sports lottery game (hereinafter the "type of lottery") or for change of any examination and approval item related to the type of lottery shall be submitted to the financial department under the State Council in accordance with the procedures as specified herein for approval.
The financial department under the State Council shall examine the applications of the lottery issuing agencies based upon the needs for the sound development of the lottery market and following the principle of reasonably planning the lottery market and structure of type of lottery and strictly controlling risks of lottery games.
Article 8 Lottery issuing agencies applying for instituting a type of lottery shall be subject to the approval of the civil affair department or the administrative department for physical culture and sports under the State Council, and deliver the following application materials to the financial department under the State Council:
(i) The application;
(ii) rules for the type of lottery;
(iii) method and scope of the issuance;
(iv) market analysis report and technical feasibility analysis report;
(v) procedures for drawing and prize claim; and
(vi) the risk control plan
The financial department under the State Council shall solicit the public opinions on the instituted type of lottery through expert evaluation and hearing, examine the application and make a written decision within 90 working days upon acceptance of the application.
Article 9 Lottery issuing agencies applying for change of any examination and approval item related to the type of lottery such as the rules, methods and scope of issuance shall be subject to the approval of the civil affairs department and administrative department for physical culture and sports under the State Council, file an application with and submit the materials in connection with the change to the financial department under the State Council.
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