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LAW OF THE KYRGYZ REPUBLIC

of August 11, 2008 No. 201

About gambling activities in the Kyrgyz Republic

(as amended on on January 18, 2010)

Accepted by Jogorku Kenesh of the Kyrgyz Republic on June 20, 2008

This Law determines the legal basis of activities of gambling institutions in the territory of the Kyrgyz Republic, state regulation of gambling activities, the basic concepts, procedure for creation and content of gambling institutions, the organizations of gamblings and their licensing, control of the organization and carrying out gamblings and responsibility of subjects of gambling activities.

Activities of subjects of gambling activities regarding the prevention, identification and suppression of the acts connected with financing of terrorism and legalization (washing) of income gained in the criminal way are performed according to the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way".

CHAPTER 1. GENERAL PROVISIONS

Article 1. The main determinations used for the purposes of this Law

In this Law the following determinations are applied:

gambling activities - the business activity which is not sales of goods, works or services, connected with extraction by gambling starting the income from operation of the gambling equipment, and also the income from participation in gamblings and bet in the form of prize;

gambling institution - the room (building) in which based on the license for creation and content of gambling institutions, the organization of gamblings gamblings are held and (or) rates on bet are accepted: casino, totalizator, slot machine hall, bookmaker office;

the participant - the physical person which is directly involved in the gamblings and bet which are carried out by gambling institution;

gambling - based on risk and concluded between two or several participants by the rules established by gambling institution, the agreement on prize which outcome depends on circumstance on which approach the parties have opportunity to influence the actions;

the bet - the agreement on prize based on risk and signed between two or several participants which outcome depends on circumstance concerning which it is unknown will come it or not;

casino - gambling institution in which with use of the gambling equipment gamblings with the announced winnings are held;

the gambling equipment - roulette, card tables, table for dicing, gaming machines, including the equipment of totalizator and bookmaker office;

game table - specially equipped place in gambling institution intended for carrying out gamblings with any kind of prize in which gambling institution through the representatives participates as the party or as the organizer and (or) the observer (roulette, card tables, table for dicing);

the gaming machine - the special equipment (mechanical, electric, electronic and other technical equipment) installed and used for carrying out gamblings with winnings without participation in the specified games of representatives of gambling institution including electronic roulette.

At the same time each landing (game) place of electronic roulette and the gaming machine is accepted as one gaming machine;

the slot machine hall - gambling institution in which with use of gaming machines gamblings are held;

game zone - the part of the room of gambling institution intended for installation of the gambling equipment;

totalizator - gambling institution in which mutual bets between all participants for the outcome of event which result is not determined in advance, characterized by certain place of acceptance of rates at participants, payment of prize to them and use of the appropriate technical means and procedures (including "Bingo-loto" and "The Russian lotto") consist;

bookmaker office - gambling institution in which bets between all participants and gambling institution for the outcome of event which result is not determined in advance consist;

the cash desk - specially equipped place in gambling institution where the total amount of rates is considered and is determined the prize amount which is subject to payment;

prize - the economic benefit in the form of money which is independently determined by the participant as positive difference between the amounts of the means paid and received in gambling or bet.

CHAPTER 2. SUBJECTS OF GAMBLING ACTIVITIES

Article 2. Subjects of gambling activities

1. Subjects of gambling activities are legal entities, including foreign, registered in accordance with the established procedure and performing gambling activities, independently organizing and performing the activities within the competence and the rights established by this Law and the current legislation of the Kyrgyz Republic.

2. Subjects of gambling activities in the trade names and other documents intended for acquaintance of wide range of persons when holding advertizing campaigns without fail shall specify specific type of gambling institution.

3. The state does not bear responsibility according to obligations of subjects of gambling activities. Subjects of gambling activities do not bear responsibility according to obligations of the state.

Article 3. Unions and associations

1. The legal entities performing the gambling activities having the right to create on voluntary basis the unions or associations for the purpose of coordination of activities, protection and representation of common interests, implementation of joint projects and the solution of other general tasks.

2. The unions or associations are created according to requirements of the legislation of the Kyrgyz Republic.

3. Activities of such organizations are performed according to requirements of the legislation and their constituent documents. Receipt of the license is not required to such organizations.

4. The unions or associations have no right to perform gambling activities.

Article 4. Persons having the right to perform gambling activities

In the territory of the Kyrgyz Republic residents of the Kyrgyz Republic in the forms of business established by this Law have the right to perform gambling activities.

Article 5. Form of business

1. Only legal entities connected in the form of limited liability company or closed joint stock company have the right to be engaged in gambling activities (further - Society). Society shall perform the activities according to the current legislation of the Kyrgyz Republic based on the license granted in accordance with the established procedure by authorized state body.

2. The legal entities performing the gambling activities having the right to perform in accordance with the established procedure economic activity, connected with the organization of public catering (restaurants, cafe, bars, etc.), the organization of travel and hotel business.

3. The legal entities who are not meeting the requirements provided by part of 1 this Article having no right to be engaged in gambling activities.

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