Procedures for Supervision and Control of Organising of Lotteries of Goods and Services

Issued pursuant to
Section 21 of the Law on
Lotteries of Goods and Services

1. These Regulations prescribe the procedures by which the Lotteries and Gambling Supervisory Inspection (hereinafter - Inspection) supervises and controls the order in which the recipient of the lottery of goods and services permit complies with the Law on Lotteries of Goods and Services, other regulatory enactments and the regulations on goods or services lottery.

2. In order to supervise and control the organisation of the goods and services lotteries, the Inspection shall arrange for inspections to be made in locations where the goods are being sold and services are being provided, in locations where during the lottery the persons who are the winners are being determined, as well as in the locations where the documents related to organisation of the goods or services lotteries and databases are located.

3. If the date when the lottery has begun and ended and the source of information, where it is possible to become acquainted with the provisions of the lottery of goods or services, are not indicated on the package of the goods of lottery, the organiser of the lottery ensures that at the location of the selling of goods or provision of the services a copy of the provisions of the lottery of goods or services, certified by the Inspection, is present and shall be provided immediately upon the request of the Inspection.

4. The person responsible for the lottery of goods or services, authorised by the recipient of the lottery permit (hereinafter - responsible person), shall ensure that at the premises of the recipient of the lottery permit where the documents and databases related to the organisation of goods or services lottery are located the following documents shall be present and shall be produced upon the request of the official of the Inspection:

4.1. a permit issued by the Inspection;

4.2. the provisions of the lottery approved by the Inspection; and

4.3. accounting documents confirming the value in lats of the items in the prize fund or documents in which the evaluation in lats of the non-material valuables is provided (if the merchant itself produces the items present in the prize fund, the value of the prizes is determined by adding the value-added tax to the cost price of the item).

5. The recipient of the lottery permit shall ensure that during the organisation of the lottery and at least five years after the lottery has ended, in the premises of the recipient of the lottery permit where the documents and databases related to the lottery of goods and services are located, the following documents shall be stored and presented, upon the request of the Inspection official, and the following information shall be available:

5.1. a permit issued by the Inspection;

5.2. the provisions of the lottery of goods or services approved by the Inspection;

5.3. a list of the existing items of the prize fund and accounting documents that confirm the value of the prizes or documents in which the evaluation in lats of the non-material valuables is provided;

5.4. a procedure protocol of determining the persons who have won the lottery in which the prizes and receivers thereof are listed;

5.5. documentary proof of participation in the lottery sent in by persons;

5.6. received objections and replies thereto;

5.7. information regarding the announcement of the persons winning the lottery; and

5.8. the act of the acceptance and delivery acknowledging the receipt of the prize.

6. If the lottery of goods or services is organised as an instant lottery, the recipient of the lottery permit is not required to produce the procedure protocol of determining the persons who have won the lottery, if the requirement of the Law on Lotteries of Goods and Services regarding the enlisting of the winning persons is observed.

7. If the merchant is organising a lottery with the prize fund not exceeding LVL 500, it shall ensure that the documents acknowledging participation in the goods or services lottery sent by the persons are stored during the organisation of the lottery and at least six months after the end of the lottery.

8. If claims regarding the process of the lottery are submitted, the merchant, organising the lottery with the prize fund not exceeding LVL 500, shall store the claims and replies thereto in his or her premises for at least 12 months.

9. The recipient of the lottery permit shall ensure that in the premises of the lottery permit recipient a report regarding the organisation of the goods or services lottery, together with the accounting documents, is stored after the end of the lottery procedure. A confirmation regarding the receipt of the report at the Inspection is necessary thereon.

10. The merchant organising the lottery with the prize fund not exceeding LVL 500 shall ensure that during the organisation of lottery and at least for five years after the lottery procedure has taken place, in its premises the following documents are stored and presented, and the following information is available to the official of the Inspection upon request:

10.1. the confirmation of compliance with the requirements specified in Section 4, Paragraph one of the Law on Lotteries of Goods and Services;

10.2. the provisions of the lottery;

10.3. the list of the items included in the prize fund and accounting documents affirming the value of the prizes or documents containing the evaluation in lats of non-material valuables;

10.4. the procedure protocol of determining the persons who have won the lottery, in which the prizes and winners thereof are listed;

10.5. information regarding announcement of the persons which have won the lottery; and

10.6. the act of the acceptance and delivery confirming the receipt of the prize.

11. Regarding the inspection performed at the place where the lottery of goods or services is organised, the officials of the Inspection, by inviting a representative (an employee) (hereinafter - invited person) of the seller of goods or the provider of services or a responsible person, shall draw up an inspection act of the place of organisation of the goods or services lottery (hereinafter - inspection act).

12. The following information shall be indicated in the inspection act:

12.1. the location, address, date and time of drawing up of the inspection act;

12.2. the Inspection official (given name, surname and position) who has performed the inspection of the place of organisation of the goods or services lottery;

12.3. the name of the merchant or the recipient of the lottery permit;

12.4. the name of the goods or services lottery;

12.5. the essence and the result of the inspection; and

12.6. the given name, surname, personal identity number, place of employment and position of the invited person or the given name, surname and position of the invited person (if the inspection is performed at the location where the documents and databases related to the organisation of the goods and services lottery are located).

13. The inspection act shall be signed by:

13.1. the official of the Inspection who has performed the inspection of the location of goods or services lottery organisation; and

13.2. the invited person or responsible person.

14. If the invited person after drawing up of the inspection act refuses to sign it, a reinspection is performed by inviting another person.

15. The invited person or the responsible person has the right to make notes in the inspection act regarding the procedure of the inspection performed at the location of the goods or services lottery organisation.

16. If the official of the Inspection takes part in determination of the winning persons, the inspection act need not be drawn up, however, one copy of the protocol of determining the persons who have won the lottery shall be passed on to the relevant official of the Inspection.

17. Cabinet Regulation No. 731 of 16 December 2003, Procedures for Supervision and Control of the Organising of Lotteries of Goods and Services (Latvijas Vēstnesis [the official Gazette of the Government of Latvia], 2003, No. 182) is repealed.

Acting for the Prime Minister -
Minister for Finance O. Spurdziņš

Minister for Special Assignments
for Administration of European Union Funds N. Broks

Translation © 2008 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)