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Law on lotteries

State guarantees

In almost all European countries, there are only state lotteries. Although private companies can act as operators, they are working on license.
Global practice has shown that there are no losers in state lotteries. All sides win. The state — the country’s coffers get a reliable source of funds from the sale of lottery tickets. The players — lottery money goes to important social projects — medical projects, education, culture, and sport. And finally, the lottery winners, who are guaranteed to get their prize.
July 1, 2014 was a historic day for the domestic lottery industry. This was the date after which all non-state lotteries were closed. Now all lotteries in Russian are run only under the aegis of the state. This guarantees each lottery participant that winnings will be paid in a timely fashion, and protects players from unscrupulous entrepreneurs and conmen.

Main features of the Law № 138-ФЗ «On Lotteries»

Types of lotteries in Russia

International

A lottery which is conducted in two or more countries, including the Russian Federation, on the basis of an international agreement. At present there are no such agreements on running international lotteries in the Russian Federation.
All-Russian State Lottery
A lottery which covers the entire Russian Federation. The organiser of an all-Russian state lottery can only be a federal authority, acting under the Government of the Russian Federation.

Draw lottery

A lottery in which the drawing of the prize fund for the lottery happens simultaneously for all players after the distribution of lottery tickets, electronic lottery tickets, and lottery receipts. Holding this sort of lottery can include separate drawings. To determine the winning lottery combination when doing the drawing for the prize fund in a draw lottery, it is not permitted to use more than one piece of lottery equipment simultaneously.

Non-draw lottery

A lottery in which the information required to determine a winner is included in the lottery tickets and electronic lottery tickets at the stage of ticket preparation. When running a non-draw lottery, the lottery player will immediately after making payment, obtaining a lottery ticket or electronic lottery ticket and revealing the hidden writings, drawings, numbers, or symbols on it, learn if he has won and the amount.

Organising and conducting lotteries

Conducting a lottery means:

• providing services including distributing (implementing, accounting) lottery tickets, electronic lottery tickets, and accounting of lottery tickets
- Concluding contracts with makers of lottery tickets, makers of lottery equipment and lottery terminals, distributors and (or) others necessary to conduct lottery agreements
- Concluding contracts with lottery participants, including accepting and accounting of lottery bets
- Drawing lottery prize funds
- Expert analysis of winning lottery tickets, electronic lottery tickets, and lottery tickets
- Paying out, transferring, or presenting the winnings to lottery winners.

Organiser of all-Russian State Lottery

Organising a lottery means carrying out the following:

• holding a tender to select a lottery operator
-signing a contract with the lottery operator
-confirming the lottery conditions

According to the decision of the Government of the Russian Federation, a lottery organiser can only be:
- the federal authority, carrying out the functions of developing and implementing state policy and normative legislative regulation in the area of physical culture and sport (the Ministry of Sport of Russia)
- the federal authority, carrying out the functions of developing state policy and normative legislative regulation in the area of budgets (the Ministry of Finance of Russia).

The lottery organiser conducts the lottery via the lottery operator by means of a contract. The contract is signed based on the results of an open tender process which the organiser conducts in accordance with the requirements of the law «On Lotteries».

Operator of all-Russian state lotteries

The lottery operator is a legal entity, registered in accordance with Russian legislation and having signed a contract with the lottery organiser to conduct lotteries in accordance with the law «On Lotteries».

Distributor of all-Russian state lotteries

A distributor is an entity having signed an agreement to distribute (implement, disburse) lottery tickets, lottery receipts, and electronic lottery tickets, accept lottery bets from lottery players, and pay out, transfer, or deliver winnings to lottery winners.
Distributors can without hinderance attract for lottery ticket distribution other parties, who will also be aknowledged as distributors.

Lottery regulations

• the size of the prize fund of the lottery must be no less than 50% of the takings from running it
- the size of the target allocations is 10% of the difference between the sum of the operator’s takings from running the lottery for the reporting quarter and the sum of the payouts by the operator on winnings in the reporting quarter. Accounting for the target allocations is conducted quarterly
- the operator’s obligations on paying the target allocations from running the lottery in the amount as envisaged in the contract, shall be made by a non-refundable bank guarantee.
Additional requirements for running a lottery:
-running a drawing of a prize fund in a draw lottery no more frequently than once every 15 minutes
-in a non-draw lottery, paying out, transferring, or delivering winnings in amounts up to 1,000 rubles must be made as soon as a winning lottery ticket or electronic lottery ticket is drawn and presented to the distributor. Winnings in amounts greater must be paid by the lottery operator to the player within 30 days after presentation of the winning lottery ticket or electronic lottery ticket
-the period for conducting a lottery is 15 years, with possible extension by the Government of the Russian Federation. The date of the beginning of the lottery is considered to be the date on which the Government of the Russian Federation made the decision to conduct the lottery.

Contract on lottery participation

The contract to participate in the lottery is concluded between the operator (earlier — the organiser) and the participant and is concluded by issuance (presentation) of:
- a lottery ticket
- a lottery receipt
- an electronic lottery ticket

The legislature has determined that only persons at least 18 years of age may enter into a contract with a lottery operator.

Lottery ticket

A lottery ticket is a document confirming the right to participate in the lottery and the conclusion of a contract between the lottery operator and the lottery participant.
The lottery ticket must have the lottery combination, printed (itemised) at the time of its preparation (creation) and (or) by the lottery participant.
According to the law, only a lottery ticket used in the running of a non-draw lottery is protected from fake printing products

Lottery ticket

A lottery ticket is a physical document issued by the lottery terminal, confirming the right to participate in the lottery and the conclusion of a contract between the lottery operator and the lottery participant.
The lottery ticket must also contain the lottery combination printed (itemised) at the time of its preparation (creation).
The principle difference between this lottery ticket and the previously described lottery ticket, is that this one is issued by the

lottery terminal.

The legislation provides for a precise definition of ‘lottery terminal’ and defines the conditions that it must meet.

Lottery terminal

A lottery terminal is a technical instrument intended to accept lottery bets (entry or selection of lottery combinations), issue lottery tickets, and to be used to run draw lotteries.

The lottery terminal can be used to issue tickets only for draw lotteries.

The lottery terminal cannot have secret (undeclared) capabilities, information storage, nodes or aggregators which are not accessible for inspection.

Lottery terminals must protect information from loss, hijacking, mistakes, counterfeits, unsanctioned actions to destroy, modify, copy or otherwise interfere, as well as from unsanctioned access to the internet.

Electronic lottery ticket

An electronic lottery ticket is an electronic document confirming the right to participate in the lottery, and the conclusion of a contract between the operator and participant, which contains protected information about the registration of a lottery bet (lottery bets), placed in a centre for processing lottery information and allowing the identification of the participant who has paid for the lottery bet (lottery bets) in the manner set out under the conditions of the lottery in accordance with the requirements of the Federal Law of July 27, 2006 № 149-ФЗ «On information, information technologies, and protection of information». The electronic lottery ticket must include the lottery combination, printed (itemised) at the time of its preparation (creation) and (or) by the lottery participant.


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