LAW OF THE REPUBLIC OF ARMENIA

of January 7, 2004 No. ZR-1

About games with prize, Internet games with prize and gaming houses

Accepted by National Assembly of the Republic of Armenia on December 13, 2003

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

1. This Law governs the relations connected with the organization and streamlining of games with prize, the Internet of games with prize and activities of gaming houses, and also establishes the state control of them.

2. Operation of this Law does not extend to activities for the organization of games with prize by means of any telecommunication communication, except as specified, established by this Law.

3. Game with prize are not chess, checkers, backgammon, shooting gallery, billiards and similar plays of sports nature, except for types of gamblings.

Article 2. The basic concepts used in the Law

In this Law the following basic concepts are used:

game with prize – any automated or live game which somehow creates possibility of prize or creates opportunity for participation in some game with prize (provisions of the participation right, except for the totalizator Internet) directly (in the game hall) and (or) by means of the Internet or any similar global system and any systematized network channels, the services in data transmission except for provided by means of land network of mobile communication and (or) interactive draws by means of short messages;

The Internet is considered game with prize creation in the territory of the Republic of Armenia of opportunity for the playing participation in any game with prize (provisions of the participation right in any way, except for the totalizator Internet) independently or under the agreement on assignment of the rights, as the contractor, under the commission agreement – as the broker, under the agreement of the agency – as the agent, under the agreement of guarantee – as the guarantor, based on the power of attorney – as the representative (including, trade), and also the being reseller or any person authorized in any way (further - the organizer the game Internet with prize) under public or other agreements or without them is direct (in the game hall) and (or) by means of the Internet or any similar global system and any systematized network channels, except for the provided services in data transmission by means of land network of mobile communication and (or) interactive draws by means of short messages.

The game Internet reckon organized in the territory of the Republic of Armenia with prize if servers of the organizer the game Internet with prize are placed in the territory of the Republic of Armenia, have the corresponding address internetwork the Internet of the protocol (IP) of the Republic of Armenia (Internet Protocol Address - the address the protocol Internet), and information resources are in the AM domain;

the mechanized game – devices for holding the programmed or mechanical games (including the lottery drum, bingo and other devices for the programmed mechanical draw) when holding games by means of which the winner is determined by the special program containing in automatic machines with the direct or mediated participation of the participant of games;

live game - any game in which except the player participates also playing, or in which the opportunity of simultaneous participation of several players without participation playing is given (except for the mechanized games);

the organization of activities of gaming houses - carrying out in gaming house of games with prize;

gaming house - the gambling hall in which the live game (games) is held;

authorized body – the Ministry of Finance;

playing - the physical person authorized by the organizer who is actually participating in game with the player on behalf of the organizer for holding game either confirmation of its outcome or performing draw;

the player - the physical person or persons (except playing) participating in game with prize;

the organizer – the organization, the aim of income acquisition (profit) in the procedure established by the law obtained the license for activities for the organization of games with prize or the Internet of games with prize or gaming house, and pursuing by means of implementation of activities for the organization of games with prize or the Internet of games with prize or gaming house;

authorized body – the state body of management authorized by the Government of the Republic of Armenia, performing licensing and monitoring activities for the organization the Internet of games with prize, games with prize, gaming houses;

executive positions – the head of executive body of the organizer (further - the Director) managing the gambling hall, the head or the responsible of division of internal observations who is engaged in prevention of money laundering and financing of terrorism;

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