LOTTERY LICENSING
LOTTERY LICENSING
Clause 3.1.1, Article 3, Law of Mongolia on Licensing states that “license to conduct a business activity’ /’License’/ means an official document issued by an authorized body to an individual, profit and non-profit legal entity to conduct certain type of business for a fixed period of time and upon meeting specific terms and requirements”.
In addition, clause 7.1, Article 7 of this law states that “unless otherwise stated in law, a license specified in Article 15 of this law shall be issued by the relevant central administrative body” and clause 15.4, Article 15 describes the “types of business activities to be conducted under a license in the area of finance and economy”.
Particularly, clause 15.4.4 states on “issuing lottery”.
In accordance above regulations, licensing on lottery is issued by the State administrative agency in charge of the financial and economic matters or the Ministry of Finance.
Also, clause 12.1, Article 12 of this law states that “the authorized licensing body shall receive and review an application and other relevant documents and shall make a decision whether to issue a license within 21 days after receiving the application, unless otherwise stated in law”.
Thus, in order to receive a lottery operation license, The Ministry of Finance receives and reviews an application and other relevant documents and makes a decision whether to issue a license within 21 days after receiving the application, unless otherwise stated in law.
The stamp duty/fee amount for lottery licensing as stated in clause 19.1.4, article 19, Law on Stamp Duty, shall be MNT 240 000 – 600 000.
A required application document for lottery licensing as follows:
1. Application /containing description of expected manufacturing or service intended, term of such activity/
2. If the applicant is a legal entity, the registration certificate; if the applicant is a citizen, a notarized copy of the identification card; and
4. Payment receipt of the state stamp fee.
Depending on feature of manufacturing or service, the following documents are submitted:
- Draft on lottery terms and conducting operations;
- Notarized recent quarterly financial statements of the applicant;
- Bank guarantee on the tax liability;
- Normative allocation of Lottery income;
- Lottery tickets or forms of other documents agreed under lottery terms and requirements, methods of preventing from copying lottery tickets, writings or pictures;
- Rule for examining or proving the tickets at the time of awarding or payments;
- Lottery conducting feasibility study, costs finance source in connection with organizing a lottery, preliminary estimates of lottery income;
- Lottery market research;
- Lottery equipment technical specifications;
- Distributed or undistributed lottery tickets registration procedure;
- Procedure on collecting, keeping and removing the undistributed tickets;
- Procedure on keeping the lottery winnings that do not required by the winner;
If the electronic lottery to be conducted, a project shall be submitted with an explanation as more simple and understandable, and an agreement made with operators shall be attached to it.
Grounding on above documents, under the order of Minister of Finance, a license is issued for no less than 3 years.