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Lotteries Act 1989

Commencement: 26 June 1989.

REPUBLIC OF VANUATU

THE LOTTERIES ACT
No. 9 OF 1989

Arrangement of Sections

1. Interpretation.

PART I
Prohibition of Conduct or Promotion of Lotteries

2. Prohibition of conducting or promoting lotteries.
3. Offences in connection with lotteries.

PART II
Lotteries Incidental to Entertainment

4. Lotteries incidental to entertainment.

PART III
Societies Lotteries

5. Societies lotteries.
6. Permission to hold lotteries.
7. Returns.
8. Unclaimed prizes.
9. Persons who are deemed to promote society's lottery.
10. Offences relating to societies lotteries.

PART IV
Lotteries to Promote Trade

11. Lottery for the promotion of trade.
12. Application for grant of permit.
13. Issue of permit.
14. Lotteries conducted during a specified period.
15. Penalty for non-compliance.

PART V
Overseas Lotteries

16. Conduct or promote overseas lotteries.
17. Minister to issue overseas lottery licence.
18. Application for grant or renewal of overseas lottery licence.
19. Duration of licence.
20. Conditions of licence.
21. Lottery tax.
22. Prohibition of publication etc.
23. Penalty for non-compliance.
24. Production of accounts and records.
25. Audit.
26. Penalties for non-compliance.
27. Falsification of books etc.

PART VI
General

28. Search warrants.
29. Offences by bodies corporate.
30. No prosecution but by authority of Attorney General.
31. Delegation of powers of the Minister.
32. Regulations.
33. Commencement. Schedule.

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REPUBLIC OF VANUATU

THE LOTTERIES ACT
No. 9 OF 1989

Assent: 19/6/89
Commencement: 26/6/89.

An Act to make provisions with regard to lotteries promoted and conducted as incidents of entertainments, on behalf of societies, for the promotion of trade, and to authorise persons to promote and conduct overseas lotteries and for matters connected therewith.

BE IT ENACTED by the President and Parliament as follows:-

INTERPRETATION

1. (1) In this Act, except where the context otherwise requires:-

'date' in relation to a lottery, means the date on which the winners in that lottery are ascertained;

'entertainment' has the meaning assigned to it by section 4 of this Act;

'governing body' in relation to any society, means the person or body of persons for the time being charged with the management or administration of the affairs of that society;

'head' in relation to any society means the president for the time being of that society or in the absence of the president, the person who for the time being occupies the position of head, by whatever name called, of the management or administration of the affairs of that society;

'lottery' includes any game, method or device whereby money or moneys worth is distributed or allotted in any manner depending upon or to be determined by chance or lot;

'Minister' means the Minister for the time being responsible for lotteries;

'money' includes a cheque, banking note, postal order or money order;

'newspaper' includes any journal, magazine or other periodical publications;

'overseas lottery' has the meaning assigned to it by section 16 of this Act;

'premises' includes any place;

'printing' includes writing and other modes of reproducing words in a visible form;

'society' includes any club, institution, organization of persons, by whatever name called, and any separate branch or section of such a club, institution, organisation or association;

'society lottery' has the meaning assigned to it by section 5 of this Act;

'ticket' in relation to any lottery includes, any document or token or other article whatsoever evidencing the claim of a person to participate in the chances or the lottery.

(2) In this Act, unless the context otherwise requires, a reference to the promotion of a lottery includes a reference to conduct of such lottery and 'promote' and 'promoter' shall be construed accordingly.

PART I
Prohibition of Conduct or Promotion of Lotteries

PROHIBITION OF CONDUCTING OR PROMOTING LOTTERIES

2. Subject to the other provisions of this Act, no person shall promote or conduct any lottery within or outside Vanuatu, except in accordance with the provisions of this Act or, regulations made thereunder or under the authority of a licence issued under this Act.

OFFENCES IN CONNECTION WITH LOTTERIES

3. (1) Subject to the other provisions of this Act, no person shall in connection with any lottery promoted or proposed to be promoted either in Vanuatu or elsewhere -

(a) print any tickets for use in lottery;

(b) sell, or distribute, or offers or advertises for sale or distribution or have in his possession for the purpose of sale or distribution, any tickets or chances in the lottery;

(c) print, publish or distribute, or have in his possession for the purpose of publication and distribution -

(i) any advertisement of the lottery;

(ii) any list, whether complete or not of prize winners or winning tickets in the lottery; or

(iii) any such matter descriptive of the drawing or intended drawing of the lottery, or otherwise relating to the lottery, as is calculated to act as an inducement to persons to participate in that lottery or in other lotteries;

(d) bring or invite any person to bring or send, into Vanuatu for the purpose of sale or distribution any ticket in, or advertisement of, the lottery;

(e) send or attempt to send out of Vanuatu any ticket or chance in the lottery, any money or valuable thing received in respect of the sale or distribution, or any document recording the sale or distribution or identity of the holder, of any ticket or chance in the lottery;

(f) use any premises, or cause or knowingly permit any premises over which he has cause or control to be used, for purposes connected with the promotion or conduct of the lottery;

(g) draw, throw or declare or exhibit expressly or otherwise the winner or winning number, ticket, lot, figure design, symbol or other result of any lottery; or

(h) cause, procure or attempt to procure any person to do any of the above mentioned acts.

(2) Any person who contravenes the provisions of subsection (1), shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding 500,000 vatu or to imprisonment for a term not exceeding two years or to both.

(3) In any proceedings instituted under subsection (1), it shall be a defence to prove that the lottery to which the proceedings relate was such a lottery, promoted or conducted in accordance with the provisions of this Act or any regulation made thereunder, or under the authority of a licence issued under this Act.

PART II
Lotteries Incidental to Entertainment

LOTTERIES INCIDENTAL TO ENTERTAINMENT

4. (1) Any person may promote or conduct a lottery as an incident of an entertainment, if the conditions specified in subsection (2) are observed in connection with the promotion and conduct of that lottery.

(2) In this section, 'entertainment' means a bazaar, sale of work, fete, dinner, dance, sporting or athletic event or other entertainment of a similar character, whether limited to one day or extending over to two or more days.

(3) The conditions referred to in subsection (1) are as follows:-

(a) the whole of the proceeds of the entertainment (including the proceeds of the lottery) after deducting, the expenses of the entertainment, including expenses incurred in connection with the lottery, and in particular -

(i) the expenses incurred in printing tickets in the lottery; and

(ii) such sum, if any not exceeding 500,000 vatu as has been expended by the promoters of the lottery on account of any expenses incurred by them in respect of the prizes in the lottery,

shall be devoted to purposes other than private gain;

(b) none of the prizes in the lottery shall be money prizes;

(c) tickets or chances in the lottery shall not be sold or issued, nor shall the result of the lottery be declared, except in the premises on which the entertainment takes place and during the progress of the entertainment; and

(d) the facilities afforded for participating in lotteries shall not be the only, or the only substantial, inducement to persons to attend the entertainment.

(4) Any person who is concerned in the promotion or conduct of the lottery referred to in subsection (1) shall, if he fails to observe the conditions specified in subsection (2), be guilty of an offence and shall be liable on conviction to a fine not exceeding 500,000 vatu or to imprisonment for a term not exceeding two years or to both.

PART III
Societies Lotteries

SOCIETIES LOTTERIES

5. (1) Subject to the provisions of this Act, any person may conduct a Society's Lottery if -

(a) it is promoted in Vanuatu;

(b) permission is granted by the Minister under section 6 of this Act;

(c) if the conditions specified in subsection (3) are observed in connection with the promotion and conduct of that lottery.

(2) In this section 'Society's Lottery' means a lottery promoted on behalf of a society which is established and conducted wholly or mainly for one or more of the following purposes -

(a) charitable purposes;

(b) participation in or support of athletic sports, or games or cultural activities;

(c) purposes which are not described in paragraph (a) or (b) above but are neither purposes of private gain nor purposes of any criminal undertaking.

(3) The conditions referred to in subsection (1)(c) are-

(a) the promoter of the lottery shall be a member of the society authorized in writing by the governing body of the society to act as such;

(b) except with the approval of the Minister no ticket or chance shall be sold at a price exceeding 2,000 vatu;

(c) no person shall be admitted to participate in a society's lottery in respect of a ticket or chance except after payment to the society of the whole price of the ticket or chance, and no money received for or on account of a ticket or chance shall in any circumstances be returned;

(d) the whole proceeds of a society's lottery, after deducting sums lawfully appropriated on account of expenses or for the provision of prize, shall be applied to purposes of the society, being purposes described in subsection (2)(a), (b) or (c);

(e) except as otherwise permitted by the Minister -

(i) the amount of the proceeds appropriated on account of expenses shall not exceed the expenses actually incurred, or ten percent of the whole proceeds whichever is the less; and

(ii) the amount of the proceeds appropriated for the provision of prizes shall not exceed one-half of the whole proceeds;

(f) the price of every ticket or chance shall be the same, and the price of any ticket shall be stated on the ticket;

(g) a notice stating the number of each winning ticket or chance in every lottery and the name and address of the winner of that ticket or chance, shall within 14 days from the date of the lottery, be exhibited by the promoter of that lottery on the premises of the society and a copy of notice shall be sent to the Minister;

(h) every ticket and every notice of advertisement of the lottery lawfully exhibited, distributed or published shall specify the name of the society, the name and address of the promoter and the date on which the draw or other determination by which the prize winners are ascertained will take place.

PERMISSION TO HOLD LOTTERIES

6. The Minister may, in his discretion, grant permission to a society, established and conducted wholly or mainly for any of the purposes specified in subsections (2)(a), 2(b) and (2)(c) of section 5 to promote and conduct lotteries in accordance with this Part.

RETURNS

7. (1) The promoter of a Society's lottery shall, not later than the end of the third month after the date of the lottery, send to an officer duly authorized by the Minister a return certified by two other members of the Society, being persons of full age appointed in writing by the governing body of the society, showing -

(a) the whole proceeds of the lottery;

(b) the sums appropriated out of these proceeds on account of expenses and on account of prizes respectively;

(c) the particular purpose of purposes referred to in subsection (2) of section 5 and the amount applied for that purpose, or for each of these purposes, as the case may be, and

(d) the date of the lottery.

(2) The officer duly authorized by the Minister referred to in subsection (1) shall preserve at his office any return sent him under subsection (1) for a period of at least 18 months, and during that period any member of the public may inspect it during office hours free of charge.

UNCLAIMED PRIZES

8. Any prize unclaimed by the person holding the ticket entitling him thereto, or by some person duly authorized in that behalf, for a period of three months after the drawing of the lottery shall be sold under the discretion of the Minister and the proceeds of the sale paid in to the Fund for which the society is formed.

PERSONS WHO ARE DEEMED TO PROMOTE SOCIETY'S LOTTERY

9. The head, secretary, and every member of the governing body of a society to which permission is granted under this Part, shall be deemed for the purposes of this Act, to promote the lottery in respect of which the permission is granted and, the provisions of this Act shall be construed accordingly.

OFFENCES RELATING TO SOCIETIES LOTTERIES

10. (1) If any provision of this Act or any regulations made under it in respect of a society's lottery is contravened, the promoter of that lottery and any other person who is a party to the contravention shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding 500,000 vatu, or to imprisonment for a term not exceeding two years or to both.

(2) It shall be a defence for a person charged with any such offence only by reason of his being the promoter to prove that the contravention occurred without his consent or connivance and that he exercised all due diligence to prevent it.

PART I V
Lotteries to Promote Trade

LOTTERY FOR THE PROMOTION OF TRADE

11. Subject to the provisions of this Act, any person may promote and conduct a lottery in connection with a competition for the promotion of trade if -

(a) a permit for the conduct of the lottery has been issued by the Minister, under this Part;

(b) any condition subject to which the permit was issued are complied with;

(c) no entry fee is charged in connection with the lottery; and

(d) any regulation made under this Act and relating to the lottery are complied with.

APPLICATION FOR GRANT OF PERMIT

12. An application for a permit to conduct a lottery referred to in section 11 shall be made in writing to the Minister and shall be accompanied by the prescribed fee.

ISSUE OF PERMIT

13. (1) A permit to conduct or promote a lottery referred to in section 11 may be issued by the Minister under this section without conditions or subject to such conditions as may be imposed by the Minister either generally or in respect of any particular matter.

(2) The Minister after considering an application for the grant of a permit, may issue or refuse to grant a permit.

LOTTERIES CONDUCTED DURING A SPECIFIED PERIOD

14. (1) Where in a permit issued under this Part, the Minister specifies that it is issued for all lotteries under this Part conducted during a specified period, that permit shall be deemed to be a permit issued separately for each lottery conducted under the authority of and by the holder of the permit during the period specified in the permit.

(2) Where in a permit issued under this Part, the Minister specifies that it is issued for a specified number of lotteries conducted during a specified period, that permit shall be deemed to be a permit issued separately for each lottery that does not exceed the number so specified, and conducted under the authority of and by the holder of the permit during the period specified in the permit.

PENALTY FOR NON-COMPLIANCE

15. Any promoter of a lottery referred to in section 11 or any other person who contravenes the provisions of this Act, or fails to comply with the conditions of a permit issued under this Part, shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding 500,000 vatu, or to imprisonment for a term not exceeding two years or to both.

PART V
Overseas Lotteries

CONDUCT OR PROMOTE OVERSEAS LOTTERIES

16. (1) Any person may promote and conduct an overseas lottery, subject to the terms and conditions of a licence issued under this Part and in accordance with the provisions of this Act.

(2) In this section 'overseas lottery' means a lottery promoted and managed from within Vanuatu and which is conducted or operated or to be conducted or operated outside Vanuatu, whether it is described as a lottery or as a sweep, consultation, or golden casket, or called by any other name or designation.

(2) Any person who contrary to the provisions of this section promotes or conducts an overseas lottery shall be guilty of an offence, and on conviction shall be liable to a fine not exceeding 5 million vatu or to imprisonment for a term of ten years or to both.

MINISTER TO ISSUE OVERSEAS LOTTERY LICENCE

17. Licence to promote or conduct an overseas lottery may, in accordance with the provisions of this Act, be issued by the Minister.

APPLICATION FOR GRANT OR RENEWAL OF OVERSEAS LOTTERY LICENCE

18. (1) An application for the grant of an overseas lottery licence may be made by any person to the Minister in the prescribed form and shall be accompanied by the prescribed fee.

(2) The holder of an overseas lottery licence may apply from time to time for the renewal of that licence.

(3) The Minister may, after considering an application for the grant or renewal of a licence made under this section, refuse to grant or renew a licence, as the case may be.

DURATION OF LICENCE

19. Subject to the provisions of this Act, an overseas lottery licence issued under this Part -

(a) shall cease to have effect on such date as may be specified in that licence:

Provided that the term of period of validity of that licence shall not exceed five years;

(b) if renewed shall be valid for a further period not exceeding five years as may be specified, commencing from the date on which it was renewed or last renewed as the case may be.

CONDITIONS OF LICENCE

20. (1) The licence issued under this Part shall be subject in addition to any condition which may be prescribed by the Minister to the following conditions:-

(a) the overseas lottery in respect of which the licence is issued shall be conducted in accordance with the laws of the country where it is conducted;

(b) the agent for overseas lottery may only transact business on the premises and in the manner specified in this licence:

Provided that the limitation shall not prevent business being transacted by post or by telephone to or from such premises;

(c) the premises and the books and documents kept in connection with the lottery by the agent shall be open to inspection during normal office hours by any person authorized in that behalf by the Minister.

(2) The agent in this section means the agent appointed or approved in accordance with the conditions of a licence granted under this Part.

LOTTERY TAX

21. (1) There shall be levied a tax (in this Part referred to as 'overseas lottery tax') in respect of every overseas lottery.

(2) Overseas lottery tax shall, subject to the provisions of this Act, be charged to and paid by the promoter of every overseas lottery.

(3) Overseas lottery tax shall, subject to the provisions of this Act, be levied on gross turnover (i.e. all tickets sales and other receipts for purchasing of draw chances) of every overseas lottery.

(4) The rates of overseas lottery tax levied under this section shall be as determined by the Minister, in consultation with the Minister responsible for Finance, and such rates shall be within the minimum and maximum levels of rate and shall be for such period as specified in the schedule to this Act.

(5) The rate to be applicable to each individual receipt shall be determined according to the date of ticket sale and shall not be determined by the closure of the lottery to which it relates.

(6) For the purposes of this section, where an overseas lottery licence is renewed under this Act, the renewed period shall be construed as a continuation of the period, commencing from the date of the first issue of that licence, under this Act.

(7) Regulations may be made by the Minister in consultation with the Minister responsible for Finance in respect of all matters necessary for the effective levy and collection of overseas lottery tax under this section.

PROHIBITION OF PUBLICATION ETC.

22. No person shall, except in accordance with the provisions of this Act and subject to the conditions of the licence issued under this Part -

(a) print or publish any advertisement, notice or information relating to an overseas lottery in furtherance of the conduct of the lottery;

(b) announce the result of an overseas lottery or;

(c) display upon any premises in his occupation any card, poster, or notice relating to an overseas lottery in furtherance of the conduct of the lottery.

PENALTY FOR NON-COMPLIANCE

23. Any promoter of an overseas lottery, or any other person who contravenes the provisions of this Act, or fails to comply with the terms and conditions of the licence issued under this Part, shall be guilty of an offence and shall on conviction be liable to a fine not exceeding 1 million vatu or to imprisonment for a term not exceeding five years or to both.

PRODUCTION OF ACCOUNTS AND RECORDS

24. The Minister may by notice in writing require a promoter of an overseas lottery -

(a) to lodge with the Minister a statement, of all money received and all payments made in connection with that overseas lottery; and

(b) to produce to a person specified in the notice, at a time and place so specified, all records that relate to the overseas lottery and statements, specifying all information contained in the records relating to the overseas lottery that are not written.

Record includes any book account, deed, writing and document and any other source of information, compiled, recorded or stored in written form, or on microfilm, or by electronic process, or in any other manner or by any other means.

AUDIT

25. (1) The Minister may direct that the statements and records referred to in section 24 shall be handed to the Auditor General or any other persons nominated by the Minister, and the Auditor General or person so nominated, as the case may be, shall receive, examine and audit the same and for that purpose make such inquiries as to him shall seem proper and necessary, and to report the result of his audit to the Minister.

(2) If the Minister so directs, the cost of examination or audit carried out pursuant to subsection (1), or any part thereof specified in that direction shall be recoverable as a debt due to the Government from the promoter of the overseas lottery.

PENALTIES FOR NON-COMPLIANCE

26. (1) Any person who is required to lodge a statement referred to in section 24 and who fails to do so within the time specified in that behalf in the notice given to him shall be guilty of an offence and shall be liable to a fine not exceeding 500,000 vatu or to imprisonment for a term not exceeding two years or to both.

(2) Any person who refuses to answer the inquires made by the Auditor General or person nominated by the Minister under section 25 shall be guilty of an offence and shall be liable to a fine not exceeding 500,000 vatu or to imprisonment for a term not exceeding two years or to both.

FALSIFICATION OF BOOKS ETC.

27. Any person who with intent to defraud or deceive any other person -

(a) alters or falsifies any record or statement referred to in section 24;

(b) makes or concurs in the making of any false or fraudulent entry in any record or statement, referred to in section 24;

(c) omits or concurs in omitting any mutual particular from any record,

shall be guilty of an offence and shall be liable to a fine not exceeding 5 million vatu or to imprisonment for a term not exceeding ten years or to both such fine and imprisonment.

PART VI
General

SEARCH WARRANTS

28. (1) If a Magistrate is satisfied on information on oath that there is reasonable ground for suspecting that an offence under this Act is being, has been, or is about to be committed on any premises he may issue a warrant in writing authorizing any police officer to enter these premises, at any time within 14 days from the issue of such warrant with the assistance and using such force as may be necessary and search them and any police officer who enters the premises under the authority of the warrant may -

(a) seize and remove any document, money or valuable thing, instrument or other thing whatsoever found on the premises which he has reasonable cause to believe may be required as evidence for the purposes of proceedings in respect of any such offence; and

(b) arrest and search any person found on the premises whom he has reasonable cause to believe to be committing or to have committed any such offence.

(2) In exercising the powers under subsection (1), any police officer may be assisted by any person authorized by the Minister.

OFFENCES BY BODIES CORPORATE

29. Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and be liable to be proceeded against and punished accordingly.

NO PROSECUTION BUT BY AUTHORITY OF ATTORNEY GENERAL

30. It shall not be competent for any court within Vanuatu to try any person for any offence or alleged offence against this Act, unless the prosecution of such person for such offence shall have been expressly authorized by the Attorney General.

DELEGATION OF POWERS OF THE MINISTER

31. The Minister may delegate to any person, any of his powers and functions under this Act.

REGULATIONS

32. (1) The Minister may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) The regulations may impose penalty not exceeding 500,000 vatu for any breach thereof.

COMMENCEMENT

33. This Act shall come into force on the date of its publication in the Gazette.

SCHEDULE

Section 21 (3)

RATES OF OVERSEAS LOTTERY TAX

The rates of Overseas Lottery Tax levied under section 21(3) shall be as follows:-

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