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On lotteries and lottery activities

The Law of the Republic of Kazakhstan dated 9 April 2016 № 495-IV

      Unofficial translation
      This Law regulates public relations in the field of lottery and lottery activities in the Republic of Kazakhstan, determines the procedure and conditions for its organization and conduct, establishes organizational bases for state regulation in the field of lottery and lottery activities.

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

      The following basic concepts are used in this Law:
      1) super prize is a part of the prize fund of circulation lottery, not played out in the course of drawing and transferring from one draw to the next draw according to the terms of the lottery;
      2) prize fund is money and (or) other property generated by the sale of lottery tickets, receipts or other documents and (or) registration of lottery rates or at the expense of the lottery operator's own funds and paid to lottery participants in the form of winning;
      3) drawing of the prize fund is a process that takes place after the realization of lottery tickets, receipts or other documents and (or) registration of lottery rates and aimed at determining the prize (winning) participant (s) of the lottery;
      4) a lottery is a game that is held in accordance with this Law, the terms of the lottery and the contract in which one party (the lottery operator) holds a raffle of the prize fund, and the second party (the lottery participant) receives the right to win if it is recognized as the winner in accordance with the terms of the lottery. The lottery is not a drawing of prizes aimed at stimulating sales of goods (services) by commercial organizations;
      5) the lottery information processing center is a hardware and software complex connected to communication networks intended for registering accepted lottery bets, receiving, storing and recording information on common lottery tickets, receipts or other documents, registered lottery rates, revenue from realized lottery tickets, receipts or other documents paid out by the winnings and its transfer from the lottery operator to the lottery reporting center;
      6) a lottery ticket, receipt or other document is a document provided for with the lottery conditions, including in electronic form, confirming the right to participate in the lottery;
      7) the lottery reporting center is a hardware and software complex connected via communication networks to the lottery information processing center, which allows to receive information about lottery tickets, receipts or other documents, registered lottery bets, proceeds from realized lottery tickets, receipts or other documents paid out winnings;
      8) lottery equipment is a device or devices (a random number generator, mechanical, electrical, electronic or other technical devices) intended to determine a prize lottery combination;
      9) the authorized body in the field of lottery and lottery activities (hereinafter referred to as the authorized body) is the central executive body that exercises leadership in lottery sphere and lottery activities;
      10) lottery combination is a set of symbols (inscriptions, numbers, signs, figures) stipulated with the lottery conditions specified in the lottery ticket, receipt or other document;
      11) lottery participant is an individual who has reached the age of eighteen, owning a lottery ticket, receipt or other document entitling him to take part in the drawing of the prize fund;
      12) lottery bet is the cost of one paid lottery combination;
      13) lottery operator is a legal entity, determined by the Government of the Republic of Kazakhstan, carrying out activities on holding lotteries;
      14) holding a lottery is carrying out activities that include production of lottery tickets, receipts or other documents, or the conclusion of contracts for their production, as well as conclusion of contracts with the manufacturer of lottery and other equipment, software products and (or) other necessary for the lottery contract (contracts), distribution and accounting of lottery tickets, receipts or other documents, drawing of prize fund, examination of prize lottery tickets, receipts or other documents, payment of winnings to lottery participants, implementation of other actions and activities necessary for holding the lottery;
      15) lottery terminal is an equipment intended for accepting lottery bets (selecting or entering lottery combinations) and (or) selling (arranging) lottery tickets, receipts or other documents;
      16) instant lottery is a kind of lottery where a set of symbols (inscriptions, numbers, signs, drawings) that allows you to determine the winnings, is put into lottery tickets, receipts or other documents at the stage of manufacturing and prior to their realization among lottery participants or before receiving lottery bets . When holding an instant lottery, the participant of such lottery immediately determines the existence and size of his winnings or his absence immediately after payment of the lottery ticket, receipt or other document, lottery bet and issue (registration) of the lottery ticket, receipt or other document;
      17) circulation is a number of realized lottery tickets, receipts or other documents, registered lottery bets participating in drawing of the prize fund (part of the prize fund) in accordance with the terms of the lottery;
      18) a circulation lottery is a type of lottery where lottery drawing is held between lottery participants using lottery equipment at a time after the realization of lottery tickets, receipts or other documents and (or) registration of lottery rates;
      19) winning is a part of the prize fund paid by the lottery operator in the amount and form (monetary or in kind) in accordance with the terms of lottery to the lottery participant recognized as having won in accordance with the terms of the lottery.

Article 2. Legislation of the Republic of Kazakhstan on lotteries and lottery activities

      1. Legislation of the Republic of Kazakhstan on lotteries and lottery activities is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other normative legal acts of the Republic of Kazakhstan.
      2. If an international treaty ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of the international treaty shall apply.

Article 3. Basic principles in the field of lottery and lottery activities

      The basic principles in the field of lottery and lottery activities are:
      1) ensuring equality of conditions for participation in the lottery, which implies equality of chances of lottery participants to win;
      2) ensuring publicity, implying mandatory publication of the lottery terms and the results of circulation lottery prize fund.

Article 4. Guarantees of the rights of lottery participants

      1. The contract between the lottery operator and the lottery participant is recognized as concluded from the moment the participant pays the lottery ticket, receipt, or other document, a lottery bet and issuing (formalization) a lottery ticket, receipt or other document.
      2. The acquisition of a lottery ticket, receipt or other document serves as the basis for the beginning of a civil obligation under which the lottery participant has the right to demand from the lottery operator:
      1) compliance with the terms of the lottery;
      2) payout winnings.
      3. A lottery participant has the right to challenge in court the decisions and actions (inaction) of the lottery operator.
      4. The lottery operator does not have the right to disclose information about the prize lottery participant, unless his written consent is received, except for cases stipulated by the laws of the Republic of Kazakhstan.
      5. In case of withdrawal of the status of a lottery operator, the lottery operator must stop distributing (selling) lottery tickets, receipts or other documents, accepting and registering lottery rates, inform lottery participants through periodicals and on the lottery's Internet resource, within three months to pay out the winnings for the relevant lottery, the draw of which was held, and return the money for the realized lottery tickets, receipts or other documents, raffle of the prize fund has not been carried out.

Article 5. Types of lotteries

      1. The lottery, depending on the way it is held, is divided into the following types:
      1) instant;
      2) circulation.
      2. It is prohibited to organize and conduct other lotteries in the Republic of Kazakhstan, except for lotteries, organized and conducted in the manner prescribed by this Law.
      3. It is not allowed to conduct gambling and / or betting under the guise of lotteries.
      4. It is prohibited to conduct a lottery by a person who is not a lottery operator.

Chapter 2. STATE REGULATION IN THE SPHERE OF LOTTERY AND LOTTERY ACTIVITIES

Article 6. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan:
      1) develops the main directions of state policy in the field of lottery and lottery activities and organizes their implementation;
      2) determines the authorized body;
      3) determines the lottery operator and the term for granting him the right to conduct the lottery;
      4) performs other functions entrusted to him by the Constitution, laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 7. Competence of an authorized body

      An Authorized body:
      1) realizes the implementation of state policy in the field of lottery and lottery activities;
      2) exercise state control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities;
      3) develops and approves criteria for risk assessment, verification lists in accordance with the Business Code of the Republic of Kazakhstan;
      4) exercises other powers provided for by this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Chapter 3. CONDUCTING LOTTERY

Article 8. General requirements for the lottery operator

      1. The lottery operator is not entitled to engage in other types of entrepreneurial activities, except for the lottery.
      2. Legal entities can not act as a lottery operator in the following cases:
      1) whose financial and economic activities are suspended in accordance with the legislation of the Republic of Kazakhstan;
      2) included in the list of organizations associated with the financing of terrorism and extremism, in accordance with the procedure established by the legislation of the Republic of Kazakhstan;
      3) having unfulfilled obligations under executive documents and included in the relevant register of debtors by the authorized body in the field of executive documents enforcement;
      4) the founders (participants) and (or) the executive body, and (or) the affiliated person of whom are persons who are close relatives, spouse or relatives of the heads of the authorized body;
      5) the founders (participants) and (or) the executive body, and (or) whose affiliated person are persons with unfinished or unpaid conviction for economic crimes or intentional crimes of medium gravity, serious crimes, grave crimes, and (or) persons included in the list of persons associated with the financing of terrorism and extremism, in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
      3. The lottery operator shall ensure the placement of a lottery reporting center in the authorized body.
      The lottery operator through the lottery information processing center shall ensure collection, formation, storage and recording of information on distributed lottery tickets, receipts or other documents, registered lottery bets, revenue from realized lottery tickets, receipts or other documents paid out by the winnings and its presentation to the lottery center reporting at least once a month.

Article 9. Requirements for the lottery terminal, lottery information processing center, lottery reporting center, lottery equipment

      1. Lottery terminals must be equipped with cash registers which models are included in the state register of cash registers in accordance with the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (the Tax Code).
      Lottery terminals can also provide for the possibility of paying out winnings, taking into account the withholding of individual income tax at the source of payment.
      2. The lottery information processing center shall be located on the territory of the Republic of Kazakhstan.
      The lottery information processing center and the lottery reporting center should protect information from loss, theft, misrepresentation, forgery, unauthorized access and actions for its distribution, blocking, destruction, modification, copying and other unlawful actions.
      3. Technical characteristics of the lottery equipment should ensure the random distribution of winnings in the raffle of the prize fund.
      4. The lottery equipment should not contain hidden features and (or) procedures and algorithms that allow predetermining the result of the prize fund drawing before the beginning of such a rally.
      5. The lottery equipment should not provide acceptance and registration of a lottery bet, nor should it have a connection through a communication network with lottery terminals.

Article 10. Terms and Conditions for the Lottery

      1. The lottery conditions are developed and approved by the lottery operator.
      2. The conditions of the lottery shall include the following information:
      1) the name of the lottery;
      2) an indication of the type of lottery;
      3) the name of the lottery operator with indication of its location, bank details, business identification number;
      4) terms of the lottery;
      5) description of the lottery concept;
      6) organizational and technological description of the lottery;
      7) the rights and obligations of lottery participants;
      8) the procedure and terms for payment of winnings to the lottery participant recognized as a winner, as well as the timing of prize lottery tickets expertise, receipts or other documents;
      9) the procedure for informing the lottery participants about the rules of participation in the lottery and the results of the prize fund drawing;
      10) the procedure for distribution (realization) of lottery tickets, receipts or other documents, acceptance and registration of lottery bets;
      11) the price of a lottery ticket, receipt or other document (the size of lottery bets);
      12) the size and type (monetary or in kind) of the winnings;
      13) the planned size of the prize fund;
      14) the procedure for holding a prize fund draw, the algorithm for determining winnings, rules for the formation and drawing of a super prize (if any).
      3. The lottery operator must forward the original copy of the lottery conditions approved by him to the authorized body not later than ten calendar days prior to the beginning of the lottery and place the conditions for holding the lottery on its Internet resource no later than one calendar day before the start of the lottery.

Article 11. Formation and distribution of the prize fund

      1. The lottery operator is obliged to ensure the formation of a prize fund in the amount of not less than fifty percent of the proceeds from realized lottery tickets, receipts or other documents registered lottery rates of a particular lottery.
      2. The prize fund is formed in accordance with this article and the terms of the lottery.
      3. The prize fund of the lottery is formed before the start of its draw.
      4. The lottery operator is prohibited from encumbering the prize fund with any obligations, except for the obligations to lottery participants in the payment of winnings, and also to use the prize fund recourses for other purposes than the payment of winnings.
      5. The prize fund of circulation lottery must be fully played out within the circulation it relates to, with the exception of circulation lottery, which uses the principle of accumulative formation of the prize fund for several runs (super prize).
      6. The payment of winnings is carried out in accordance with this Law and the terms of the lottery.
      The payment of winnings must begin not later than within thirty days after the corresponding circulation and last no less than six months from the date of publication of the results of this circulation (prize fund drawing). At the end of this period, claims for unclaimed winnings are accepted in the manner prescribed by the lottery conditions.
      7. Winnings that are not claimed in the terms established by the conditions of the lottery are stored by the lottery operator within three years from the publication of the results of the relevant circulation (prize fund drawing), after which they are credited to the budget revenue in the form of a non-tax payment.

Article 12. Requirements for lottery tickets, receipts or other documents

      1. Lottery tickets, receipts or other documents must contain the following mandatory information:
      1) the name of the lottery;
      2) the name, location, phone numbers and Internet resources of the lottery operator;
      3) number or name of circulation (for circulation lotteries);
      4) the number of the lottery ticket, receipt or other document;
      5) the price of a lottery ticket, receipt or other document;
      6) date and place of the prize fund lottery (for circulation lottery);
      7) data on the place and timing of the winnings receipt;
      8) the size of the prize fund.
      2. The information contained in lottery tickets, receipts or other documents must meet the requirements of the legislation of the Republic of Kazakhstan on languages.
      3. The electronic form of a lottery ticket, receipt or other document does not require identification through an electronic digital signature.

Article 13. Requirements for the drawing of the prize fund

      1. The drawing of the prize fund is carried out in accordance with this Law and the terms of the lottery.
      2. Drawing of the prize fund of circulation lottery is carried out by lottery equipment generating a randomly won lottery combination, which the lottery participant must compare with the lottery combination in this drawing in order to reveal his winnings.
      3. When drawing a lottery prize fund, the lottery operator creates a draw commission.
      Representatives of public associations or other non-profit organizations may be included in the commission membership.
      4. Duties of the drawing commission:
      1) confirmation of the number of lottery tickets participating in the drawing, receipts or other documents and (or) registered lottery rates;
      2) confirmation of the circulation results.
      Confirmation of the circulation results is recorded by signing the minutes of the drawing commission and the official table of the circulation results by the members of the commission.
      5. The lottery operator provides translation of the prize fund draw of the circulation lottery with a demonstration of the procedure for determining wins on the television channel in live broadcasting or on the Internet.
      6. The results of each raffle of the prize fund and winnings of lottery tickets, receipts or other documents registered to the circulation lottery bet are published by the lottery operator in periodicals distributed throughout the territory of the Republic of Kazakhstan within three working days or posted on the operator's Internet resource lottery within twelve hours from the date of the specified drawing.
      7. In case of termination of circulation, its prize fund should be played out completely, including a super prize.
      8. Drawing of the instant lottery prize fund is in:
      1) identification by the lottery participant of a hidden lottery combination, which is incorporated in a lottery ticket, receipt or other document at the stage of its manufacture;
      2) comparison of information revealed by the lottery participant with the terms of the lottery.
      9. It is prohibited to use procedures and algorithms that allow predetermining the result of the lottery prize fund drawing before the beginning of such a lottery.

Article 14. Deductions from the lottery

      The lottery operator must quarterly allocate for sports development at least ten percent of the difference between the proceeds from realized lottery tickets, receipts or other documents, registered lottery rates and the prize fund.

Chapter 4. RESPONSIBILITY FOR VIOLATION OF LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON LOTTERIES AND LOTTERY ACTIVITIES.STATE CONTROL OF COMPLIANCE WITH THE LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON LOTTERIES AND LOTTERY ACTIVITIES

Article 15. Responsibility for violation of the legislation of the Republic of Kazakhstan on lotteries and lottery activities

      Violation of the legislation of the Republic of Kazakhstan on lotteries and lottery activities entails responsibility established by the laws of the Republic of Kazakhstan.

Article 16. State control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities

      1. The state control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities is carried out in the form of verification.
      2. Verification is carried out in accordance with the Entrepreneurial Code
      Code of the Republic of Kazakhstan.

Chapter 5. FINAL AND TRANSITIONAL PROVISIONS

Article 17. Transitional Provisions

      Licensees who carry out activities in the field of organizing and conducting lotteries are obliged to fully play the prize funds of the relevant lotteries, including superprizes, to pay out winnings and return money for realized lottery tickets, receipts or other documents, a rally within six months from the date of introduction of this law, which the prize fund was not held.

Article 18. Procedure for Enactment of this Law

      This Law shall be enacted upon expiration of ten calendar days after the date of its first official publication, with the exception of Article 5, paragraphs 2 and 4 of this Law, which shall come into force six months after the date of enactment of this Law.
      The President
of the Republic of Kazakhstan
N. NAZARBAYEV

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On lotteries and lottery activities (changes for 09 апреля 2016) Z1600000495

The Law of the Republic of Kazakhstan dated 9 April 2016 № 495-IV

      Unofficial translation
      This Law regulates public relations in the field of lottery and lottery activities in the Republic of Kazakhstan, determines the procedure and conditions for its organization and conduct, establishes organizational bases for state regulation in the field of lottery and lottery activities.

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

      The following basic concepts are used in this Law:
      1) super prize is a part of the prize fund of circulation lottery, not played out in the course of drawing and transferring from one draw to the next draw according to the terms of the lottery;
      2) prize fund is money and (or) other property generated by the sale of lottery tickets, receipts or other documents and (or) registration of lottery rates or at the expense of the lottery operator's own funds and paid to lottery participants in the form of winning;
      3) drawing of the prize fund is a process that takes place after the realization of lottery tickets, receipts or other documents and (or) registration of lottery rates and aimed at determining the prize (winning) participant (s) of the lottery;
      4) a lottery is a game that is held in accordance with this Law, the terms of the lottery and the contract in which one party (the lottery operator) holds a raffle of the prize fund, and the second party (the lottery participant) receives the right to win if it is recognized as the winner in accordance with the terms of the lottery. The lottery is not a drawing of prizes aimed at stimulating sales of goods (services) by commercial organizations;
      5) the lottery information processing center is a hardware and software complex connected to communication networks intended for registering accepted lottery bets, receiving, storing and recording information on common lottery tickets, receipts or other documents, registered lottery rates, revenue from realized lottery tickets, receipts or other documents paid out by the winnings and its transfer from the lottery operator to the lottery reporting center;
      6) a lottery ticket, receipt or other document is a document provided for with the lottery conditions, including in electronic form, confirming the right to participate in the lottery;
      7) the lottery reporting center is a hardware and software complex connected via communication networks to the lottery information processing center, which allows to receive information about lottery tickets, receipts or other documents, registered lottery bets, proceeds from realized lottery tickets, receipts or other documents paid out winnings;
      8) lottery equipment is a device or devices (a random number generator, mechanical, electrical, electronic or other technical devices) intended to determine a prize lottery combination;
      9) the authorized body in the field of lottery and lottery activities (hereinafter referred to as the authorized body) is the central executive body that exercises leadership in lottery sphere and lottery activities;
      10) lottery combination is a set of symbols (inscriptions, numbers, signs, figures) stipulated with the lottery conditions specified in the lottery ticket, receipt or other document;
      11) lottery participant is an individual who has reached the age of eighteen, owning a lottery ticket, receipt or other document entitling him to take part in the drawing of the prize fund;
      12) lottery bet is the cost of one paid lottery combination;
      13) lottery operator is a legal entity, determined by the Government of the Republic of Kazakhstan, carrying out activities on holding lotteries;
      14) holding a lottery is carrying out activities that include production of lottery tickets, receipts or other documents, or the conclusion of contracts for their production, as well as conclusion of contracts with the manufacturer of lottery and other equipment, software products and (or) other necessary for the lottery contract (contracts), distribution and accounting of lottery tickets, receipts or other documents, drawing of prize fund, examination of prize lottery tickets, receipts or other documents, payment of winnings to lottery participants, implementation of other actions and activities necessary for holding the lottery;
      15) lottery terminal is an equipment intended for accepting lottery bets (selecting or entering lottery combinations) and (or) selling (arranging) lottery tickets, receipts or other documents;
      16) instant lottery is a kind of lottery where a set of symbols (inscriptions, numbers, signs, drawings) that allows you to determine the winnings, is put into lottery tickets, receipts or other documents at the stage of manufacturing and prior to their realization among lottery participants or before receiving lottery bets . When holding an instant lottery, the participant of such lottery immediately determines the existence and size of his winnings or his absence immediately after payment of the lottery ticket, receipt or other document, lottery bet and issue (registration) of the lottery ticket, receipt or other document;
      17) circulation is a number of realized lottery tickets, receipts or other documents, registered lottery bets participating in drawing of the prize fund (part of the prize fund) in accordance with the terms of the lottery;
      18) a circulation lottery is a type of lottery where lottery drawing is held between lottery participants using lottery equipment at a time after the realization of lottery tickets, receipts or other documents and (or) registration of lottery rates;
      19) winning is a part of the prize fund paid by the lottery operator in the amount and form (monetary or in kind) in accordance with the terms of lottery to the lottery participant recognized as having won in accordance with the terms of the lottery.

Article 2. Legislation of the Republic of Kazakhstan on lotteries and lottery activities

      1. Legislation of the Republic of Kazakhstan on lotteries and lottery activities is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other normative legal acts of the Republic of Kazakhstan.
      2. If an international treaty ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of the international treaty shall apply.

Article 3. Basic principles in the field of lottery and lottery activities

      The basic principles in the field of lottery and lottery activities are:
      1) ensuring equality of conditions for participation in the lottery, which implies equality of chances of lottery participants to win;
      2) ensuring publicity, implying mandatory publication of the lottery terms and the results of circulation lottery prize fund.

Article 4. Guarantees of the rights of lottery participants

      1. The contract between the lottery operator and the lottery participant is recognized as concluded from the moment the participant pays the lottery ticket, receipt, or other document, a lottery bet and issuing (formalization) a lottery ticket, receipt or other document.
      2. The acquisition of a lottery ticket, receipt or other document serves as the basis for the beginning of a civil obligation under which the lottery participant has the right to demand from the lottery operator:
      1) compliance with the terms of the lottery;
      2) payout winnings.
      3. A lottery participant has the right to challenge in court the decisions and actions (inaction) of the lottery operator.
      4. The lottery operator does not have the right to disclose information about the prize lottery participant, unless his written consent is received, except for cases stipulated by the laws of the Republic of Kazakhstan.
      5. In case of withdrawal of the status of a lottery operator, the lottery operator must stop distributing (selling) lottery tickets, receipts or other documents, accepting and registering lottery rates, inform lottery participants through periodicals and on the lottery's Internet resource, within three months to pay out the winnings for the relevant lottery, the draw of which was held, and return the money for the realized lottery tickets, receipts or other documents, raffle of the prize fund has not been carried out.

Article 5. Types of lotteries

      1. The lottery, depending on the way it is held, is divided into the following types:
      1) instant;
      2) circulation.
      2. It is prohibited to organize and conduct other lotteries in the Republic of Kazakhstan, except for lotteries, organized and conducted in the manner prescribed by this Law.
      3. It is not allowed to conduct gambling and / or betting under the guise of lotteries.
      4. It is prohibited to conduct a lottery by a person who is not a lottery operator.

Chapter 2. STATE REGULATION IN THE SPHERE OF LOTTERY AND LOTTERY ACTIVITIES

Article 6. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan:
      1) develops the main directions of state policy in the field of lottery and lottery activities and organizes their implementation;
      2) determines the authorized body;
      3) determines the lottery operator and the term for granting him the right to conduct the lottery;
      4) performs other functions entrusted to him by the Constitution, laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 7. Competence of an authorized body

      An Authorized body:
      1) realizes the implementation of state policy in the field of lottery and lottery activities;
      2) exercise state control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities;
      3) develops and approves criteria for risk assessment, verification lists in accordance with the Business Code of the Republic of Kazakhstan;
      4) exercises other powers provided for by this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Chapter 3. CONDUCTING LOTTERY

Article 8. General requirements for the lottery operator

      1. The lottery operator is not entitled to engage in other types of entrepreneurial activities, except for the lottery.
      2. Legal entities can not act as a lottery operator in the following cases:
      1) whose financial and economic activities are suspended in accordance with the legislation of the Republic of Kazakhstan;
      2) included in the list of organizations associated with the financing of terrorism and extremism, in accordance with the procedure established by the legislation of the Republic of Kazakhstan;
      3) having unfulfilled obligations under executive documents and included in the relevant register of debtors by the authorized body in the field of executive documents enforcement;
      4) the founders (participants) and (or) the executive body, and (or) the affiliated person of whom are persons who are close relatives, spouse or relatives of the heads of the authorized body;
      5) the founders (participants) and (or) the executive body, and (or) whose affiliated person are persons with unfinished or unpaid conviction for economic crimes or intentional crimes of medium gravity, serious crimes, grave crimes, and (or) persons included in the list of persons associated with the financing of terrorism and extremism, in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
      3. The lottery operator shall ensure the placement of a lottery reporting center in the authorized body.
      The lottery operator through the lottery information processing center shall ensure collection, formation, storage and recording of information on distributed lottery tickets, receipts or other documents, registered lottery bets, revenue from realized lottery tickets, receipts or other documents paid out by the winnings and its presentation to the lottery center reporting at least once a month.

Article 9. Requirements for the lottery terminal, lottery information processing center, lottery reporting center, lottery equipment

      1. Lottery terminals must be equipped with cash registers which models are included in the state register of cash registers in accordance with the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (the Tax Code).
      Lottery terminals can also provide for the possibility of paying out winnings, taking into account the withholding of individual income tax at the source of payment.
      2. The lottery information processing center shall be located on the territory of the Republic of Kazakhstan.
      The lottery information processing center and the lottery reporting center should protect information from loss, theft, misrepresentation, forgery, unauthorized access and actions for its distribution, blocking, destruction, modification, copying and other unlawful actions.
      3. Technical characteristics of the lottery equipment should ensure the random distribution of winnings in the raffle of the prize fund.
      4. The lottery equipment should not contain hidden features and (or) procedures and algorithms that allow predetermining the result of the prize fund drawing before the beginning of such a rally.
      5. The lottery equipment should not provide acceptance and registration of a lottery bet, nor should it have a connection through a communication network with lottery terminals.

Article 10. Terms and Conditions for the Lottery

      1. The lottery conditions are developed and approved by the lottery operator.
      2. The conditions of the lottery shall include the following information:
      1) the name of the lottery;
      2) an indication of the type of lottery;
      3) the name of the lottery operator with indication of its location, bank details, business identification number;
      4) terms of the lottery;
      5) description of the lottery concept;
      6) organizational and technological description of the lottery;
      7) the rights and obligations of lottery participants;
      8) the procedure and terms for payment of winnings to the lottery participant recognized as a winner, as well as the timing of prize lottery tickets expertise, receipts or other documents;
      9) the procedure for informing the lottery participants about the rules of participation in the lottery and the results of the prize fund drawing;
      10) the procedure for distribution (realization) of lottery tickets, receipts or other documents, acceptance and registration of lottery bets;
      11) the price of a lottery ticket, receipt or other document (the size of lottery bets);
      12) the size and type (monetary or in kind) of the winnings;
      13) the planned size of the prize fund;
      14) the procedure for holding a prize fund draw, the algorithm for determining winnings, rules for the formation and drawing of a super prize (if any).
      3. The lottery operator must forward the original copy of the lottery conditions approved by him to the authorized body not later than ten calendar days prior to the beginning of the lottery and place the conditions for holding the lottery on its Internet resource no later than one calendar day before the start of the lottery.

Article 11. Formation and distribution of the prize fund

      1. The lottery operator is obliged to ensure the formation of a prize fund in the amount of not less than fifty percent of the proceeds from realized lottery tickets, receipts or other documents registered lottery rates of a particular lottery.
      2. The prize fund is formed in accordance with this article and the terms of the lottery.
      3. The prize fund of the lottery is formed before the start of its draw.
      4. The lottery operator is prohibited from encumbering the prize fund with any obligations, except for the obligations to lottery participants in the payment of winnings, and also to use the prize fund recourses for other purposes than the payment of winnings.
      5. The prize fund of circulation lottery must be fully played out within the circulation it relates to, with the exception of circulation lottery, which uses the principle of accumulative formation of the prize fund for several runs (super prize).
      6. The payment of winnings is carried out in accordance with this Law and the terms of the lottery.
      The payment of winnings must begin not later than within thirty days after the corresponding circulation and last no less than six months from the date of publication of the results of this circulation (prize fund drawing). At the end of this period, claims for unclaimed winnings are accepted in the manner prescribed by the lottery conditions.
      7. Winnings that are not claimed in the terms established by the conditions of the lottery are stored by the lottery operator within three years from the publication of the results of the relevant circulation (prize fund drawing), after which they are credited to the budget revenue in the form of a non-tax payment.

Article 12. Requirements for lottery tickets, receipts or other documents

      1. Lottery tickets, receipts or other documents must contain the following mandatory information:
      1) the name of the lottery;
      2) the name, location, phone numbers and Internet resources of the lottery operator;
      3) number or name of circulation (for circulation lotteries);
      4) the number of the lottery ticket, receipt or other document;
      5) the price of a lottery ticket, receipt or other document;
      6) date and place of the prize fund lottery (for circulation lottery);
      7) data on the place and timing of the winnings receipt;
      8) the size of the prize fund.
      2. The information contained in lottery tickets, receipts or other documents must meet the requirements of the legislation of the Republic of Kazakhstan on languages.
      3. The electronic form of a lottery ticket, receipt or other document does not require identification through an electronic digital signature.

Article 13. Requirements for the drawing of the prize fund

      1. The drawing of the prize fund is carried out in accordance with this Law and the terms of the lottery.
      2. Drawing of the prize fund of circulation lottery is carried out by lottery equipment generating a randomly won lottery combination, which the lottery participant must compare with the lottery combination in this drawing in order to reveal his winnings.
      3. When drawing a lottery prize fund, the lottery operator creates a draw commission.
      Representatives of public associations or other non-profit organizations may be included in the commission membership.
      4. Duties of the drawing commission:
      1) confirmation of the number of lottery tickets participating in the drawing, receipts or other documents and (or) registered lottery rates;
      2) confirmation of the circulation results.
      Confirmation of the circulation results is recorded by signing the minutes of the drawing commission and the official table of the circulation results by the members of the commission.
      5. The lottery operator provides translation of the prize fund draw of the circulation lottery with a demonstration of the procedure for determining wins on the television channel in live broadcasting or on the Internet.
      6. The results of each raffle of the prize fund and winnings of lottery tickets, receipts or other documents registered to the circulation lottery bet are published by the lottery operator in periodicals distributed throughout the territory of the Republic of Kazakhstan within three working days or posted on the operator's Internet resource lottery within twelve hours from the date of the specified drawing.
      7. In case of termination of circulation, its prize fund should be played out completely, including a super prize.
      8. Drawing of the instant lottery prize fund is in:
      1) identification by the lottery participant of a hidden lottery combination, which is incorporated in a lottery ticket, receipt or other document at the stage of its manufacture;
      2) comparison of information revealed by the lottery participant with the terms of the lottery.
      9. It is prohibited to use procedures and algorithms that allow predetermining the result of the lottery prize fund drawing before the beginning of such a lottery.

Article 14. Deductions from the lottery

      The lottery operator must quarterly allocate for sports development at least ten percent of the difference between the proceeds from realized lottery tickets, receipts or other documents, registered lottery rates and the prize fund.

Chapter 4. RESPONSIBILITY FOR VIOLATION OF LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON LOTTERIES AND LOTTERY ACTIVITIES.STATE CONTROL OF COMPLIANCE WITH THE LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON LOTTERIES AND LOTTERY ACTIVITIES

Article 15. Responsibility for violation of the legislation of the Republic of Kazakhstan on lotteries and lottery activities

      Violation of the legislation of the Republic of Kazakhstan on lotteries and lottery activities entails responsibility established by the laws of the Republic of Kazakhstan.

Article 16. State control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities

      1. The state control over compliance with the legislation of the Republic of Kazakhstan on lotteries and lottery activities is carried out in the form of verification.
      2. Verification is carried out in accordance with the Entrepreneurial Code
      Code of the Republic of Kazakhstan.

Chapter 5. FINAL AND TRANSITIONAL PROVISIONS

Article 17. Transitional Provisions

      Licensees who carry out activities in the field of organizing and conducting lotteries are obliged to fully play the prize funds of the relevant lotteries, including superprizes, to pay out winnings and return money for realized lottery tickets, receipts or other documents, a rally within six months from the date of introduction of this law, which the prize fund was not held.

Article 18. Procedure for Enactment of this Law

      This Law shall be enacted upon expiration of ten calendar days after the date of its first official publication, with the exception of Article 5, paragraphs 2 and 4 of this Law, which shall come into force six months after the date of enactment of this Law.
      The President
of the Republic of Kazakhstan
N. NAZARBAYEV