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LAW OF THE KYRGYZ REPUBLIC

of May 10, 2017 No. 78

About lotteries

(as amended on 29-07-2021)

Accepted by Jogorku Kenesh of the Kyrgyz Republic on March 30, 2017

Article 1. The basic concepts used in this Law

In this Law the following concepts are used:

1) the affiliate - person corresponding to one or several following signs:

a) is the head, the worker of the organizer of professional lottery, and also their close relatives;

b) is supplier (contractor), founders and (or) members of whom are persons holding political state positions, political municipal positions, special state positions and their close relatives. At the same time the shareholder of joint-stock company owning less than 20 percent of shares does not treat this sign;

2) prize - the part of prize fund which dropped out on the lottery ticket, paid in cash or transferred in natural form to the possession to the participant of lottery recognized won in accordance with the terms of lottery. At the same time loss of prize on the lottery ticket is only matter of luck and cannot be specially arranged by anybody;

3) revenue from carrying out lottery - the total amount of money received from implementation of lottery tickets and estimated proceeding from the number of actually sold lottery tickets and their selling cost to persons which became participants of lottery at the price specified in the conditions of lottery (the lottery ticket);

4) the income of lottery - revenue from carrying out lottery less cash equivalent of the prize fund of lottery, operating and administrative expenses connected with release, management and sale of lotteries which is come to this rescue;

5) lottery - game which is held according to this Law, conditions of carrying out lottery in which one party (the organizer of lottery) holds draw of prize fund and the second party (the participant of lottery) acquires the right to prize if it is acknowledged the lottery which won in accordance with the terms of carrying out;

6) lottery activities - the type of activity (services) connected with the organization of group or mass game during which the organizer of lottery provides carrying out between participants of lottery - owners of lottery tickets the draw of prize fund of lottery performed according to the legislation of the Kyrgyz Republic. At the same time the prize does not depend on will and actions of the subject of lottery activities;

7) the lottery ticket - the data carrier (in paper or electronically) which is specially manufactured for distribution or the personal identification number (code) fixed by game system of lottery and certifying the right of person to participation in the carried-out lottery and to receipt of prize if on this ticket the prize dropped out;

8) the lottery equipment - the technical device (mechanical, electric, electronic, including hardware and software system) intended for holding draw in drawing lottery;

9) the lottery terminal - the equipment intended for implementation of lottery tickets and (or) acceptance of lottery rates (the choice or input of lottery combination (combinations), and also issue of the document provided by conditions of the carrying out lottery confirming registration of lottery rate (rates). The lottery terminal can also provide possibility of implementation of payment of prizes taking into account deduction of the individual income tax at payment source;

10) lottery combination - the set of symbols (texts, numbers, signs, drawings) provided by conditions of carrying out lottery which allows to determine the winner (winners), availability and the size of prize;

11) lottery rate - the paid lottery combination;

12) unclaimed prize fund - the cash and (or) property prizes which were not demanded in the time established by conditions of carrying out lottery;

13) the organizer of lottery - the legal entities performing lottery activities. Organizers of lottery share on:

a) the organizer of the stimulating lottery - the state bodies determined by the Cabinet of Ministers of the Kyrgyz Republic and also non-state business entities;

b) the organizer of the state lottery - the state bodies determined by the Cabinet of Ministers of the Kyrgyz Republic;

c) the organizer of professional lottery - the legal entity authorized by the Cabinet of Ministers of the Kyrgyz Republic in accordance with the established procedure on carrying out professional lottery based on the license;

14) prize fund of lottery - the set of means, property or services declared in the conditions of carrying out lottery and expressed in cash intended for payment (transfer, provision) prizes which is created due to receipt of payment for the implemented lottery tickets or at the expense of own means of the organizer of lottery;

15) carrying out lottery - implementation of the actions including the conclusion of agreements with the supplier of lottery tickets (the documents confirming the right of participation in lottery), the supplier of the lottery and necessary equipment for carrying out lottery, software products and (or) agreements, and also agreements, necessary for carrying out lottery, on distribution and accounting of lottery tickets (the documents confirming the right of participation in lottery), draw of prize fund, examination of advantageous lottery tickets (the documents confirming the right of participation in lottery), payment, transfer or provision of prizes to participants of lottery and also implementation of other actions and actions necessary for carrying out lottery;

16) draw of prize fund of lottery - the procedure during which (with use of the lottery equipment or without that) the won participants of lottery and subjects to payment, transfer or provision to these participants prizes are determined;

17) the participant of lottery - the physical person which reached eighteen-year age, owning the lottery ticket granting the participation right in draw of prize fund;

18) authorized body - the state body determined by the Cabinet of Ministers of the Kyrgyz Republic, regulating lottery activities in the Kyrgyz Republic;

19) fund of target assignments - the set of the money received as a result of carrying out lotteries created by the organizer of professional lottery;

20) the center of processing of lottery information - the hardware and software connected to communication networks and intended for obtaining, storage and accounting of information on revenue from the implemented lottery tickets, the accepted lottery rates and paid transferred in nature or the provided prizes;

21) target assignments - the part of revenue from carrying out lottery directed to the purposes and according to the procedure provided by this Law;

22) the operator of lottery - the legal entity who signed the agreement with the organizer of lottery on carrying out and maintenance of lottery. At the same time the operator of lottery shall create the legal entity in the territory of the Kyrgyz Republic.

Article 2. Subject of regulation of the Law

This Law determines the legal basis of state regulation of the relations arising under the organization and carrying out lotteries, regulations and sales of lotteries and creates basis for healthy development of lottery activities and increase in public welfare by transparent use of the income from lottery activities, and also determines the rights, obligations and responsibility of persons participating in the organization and carrying out lotteries.

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