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Lotteries (Amendment) Act 1990

Commencement: 1 October 1990

REPUBLIC OF VANUATU

THE LOTTERIES (AMENDMENT) ACT
NO. 12 OF 1990

Arrangement of Sections

1. Amendment of section 18 of Act No. 9 of 1989.
2. Amendment of section 20 of the principal Act.
3. Insertion of new sections in the principal Act.
4. Commencement.

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REPUBLIC OF VANUATU

THE LOTTERIES (AMENDMENT) ACT
NO. 12 OF 1990

Assent: 10/9/90
Commencement: 1/10/90

An Act to amend the Lotteries Act No. 9 of 1989.

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

AMENDMENT OF SECTION 18 OF ACT No. 9 OF 1989

1. The Lotteries Act No. 9 of 1989, in this Act referred to as the "principal Act", is amended in section 18 by repealing subsection (1) and substituting the following subsection:-

"(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 -

(a) state the percentage of the gross proceeds designated to be allocated for prizes;

(b) be accompanied by the prescribed fee."

AMENDMENT OF SECTION 20 OF THE PRINCIPAL ACT

2. Section 20 of the principal Act is amended -

(a) in paragraph (c) of subsection 1 by deleting the fullstop and substituting the semi-colon;

(b) by adding after paragraph (c) of subsection (1) the following new paragraph:-

"(d) all forms of advertisement used by the holder of an overseas lottery licence shall state the percentage of the gross proceeds designated to be allocated for prizes."

INSERTION OF NEW SECTIONS IN THE PRINCIPAL ACT

3. The principal Act is amended by inserting after section 20 the following sections:-

"PRIZE FUND

20A. (1) The prize fund shall be a tangible amount of money, in cash, deducted from the gross proceeds arising from the sale of lottery tickets, equal to the percentage of such gross proceeds designated to be allocated for prizes plus an additional one percent of such gross proceeds, the latter to contribute to the cost of redistributing the prize fund as provided for in subsection (5) of this section.

(2) The holder of an overseas licence hereinafter referred to as the "licensee" shall, within 2 months after the date of issue of such licence open a trust account in the name of the Trust in a Bank in Vanuatu, and each month, or during such period as the Minister may approve, pay the percentage designated to be allocated for prizes, referred to in subsection (1), into the trust account to be held on trust for ticket holders.

(3) On each occasion, referred to in subsection (2), when the licensee pays into the prize fund the percentage designated to be allocated for prizes, the licensee shall submit to the Accountant General -

(a) evidence that the due amounts had been paid into the prize fund;

(b) names, addresses and amounts paid by every ticket purchaser.

(4) The money paid into the trust account shall not -

(a) form part of the working capital of the licensee;

(b) be encumbered, charged or used as collateral in any way;

(c) be used to finance day-to-day operations of the licensee.

(5) If the licensee fails to fulfil his obligation to hold a draw either through insolvency, fraud, receivership or any other cause, then, the prize fund is to be redistributed, less costs of postage, on a pro-rata basis to all ticket holders who hold a fully paid up valid ticket and creditors whether secured or otherwise of such licensee shall have no call on the prize fund.

TRUST

20B. (1) There shall be established in respect of each overseas lottery operated under a licence from Vanuatu a Trust to be known by such name as the Minister shall approve.

(2) The Trust shall consist of the licensee or his nominee and the Accountant General or his nominee.

(3) The members of the Trust shall hold office for the term of the licence and any necessary additional period agreed to by the Minister.

(4) Subject to section 20C.(2) no action whatsoever may be taken affecting the funds in the prize fund unless all members of the Trust agree so to do.

DRAWS

20C. (1) within 2 months of the date of issue of an overseas lottery licence, the licensee shall, in writing, inform the Minister of the dates on which draws shall be made.

(2) If at the end of one month following the date notified to the Minister on which a draw is to be made, no draw is made, the Minister shall, after giving the licensee an opportunity to show cause, authorize the Accountant General to operate the trust account independently for the purposes specified in subsection (5) of section 20A.

(3) The decision of the Minister under subsection (2) is final."

COMMENCEMENT

4. This Act shall come into force on the day of its publication in the Gazette.

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