Vietnam Proposes Stricter Penalties for Lottery and Casino Violations

As part of its ongoing efforts to modernize national regulations and align with the updated legal framework, the Vietnamese Ministry of Finance has introduced two draft Government Decrees. These proposals establish a comprehensive structure for administrative penalties targeting violations within the lottery, betting, and games of chance sectors.

Overview of Regulatory Changes

The proposed amendments stem from the critical need to update compliance standards and incorporate current guidelines associated with the Law on Anti-Money Laundering, the Law on Counter-Terrorism, the amended Law on Handling Administrative Violations, and the Law on Inspection. Under the new frameworks, organizations face a maximum fine of 200 million VND for non-compliance, while penalties for individuals are set at half that amount.

Lottery Business Sector Framework

The draft Decree governing the lottery industry spans 4 Chapters and 32 Articles, outlining clear categories of violations, forms of punishment, remedial measures, and enforcement authority.

Specific Offenses and Penalties: Certain infractions apply strictly to individuals, such as forging or altering lottery tickets, purchasing tickets when ineligible, falsifying application files for lottery agencies, organizing illegal prize draws using lottery results, and providing unauthorized predictions of lottery outcomes.

Sanctions and Remedial Measures: The text introduces temporary suspension of lottery business operations alongside the confiscation of evidence and means used in administrative violations.

Statute of Limitations: Limitations follow Article 6 of the Law on Handling Administrative Violations, specifying exact cessation points for ongoing acts.

Compliance Expansion: New provisions strictly penalize violations regarding anti-money laundering, counter-terrorism, and the financing of weapons of mass destruction.

Enforcement Authorities: Responsibilities for issuing penalties and reporting violations are distributed among state management agencies, local People's Committees, and the People's Police.

Betting, Casino, and Electronic Gaming Sectors

The second draft Decree covers the betting, casino, and electronic gaming industries across 4 Chapters and 65 Articles, dividing violations into 17 betting groups, 15 casino groups, 15 electronic gaming groups, and 4 groups dedicated to anti-money laundering and terrorism financing.

Fines and Sanctions: Organizations face a maximum fine of 200 million VND, whereas individuals face up to 100 million VND depending on the offense. Additional punitive measures include the temporary suspension of business operations and the confiscation of material evidence.

Statute of Limitations: The enforcement period is generally set at one year, measured from the discovery date for continuous acts or from the precise moment the violation ceased for completed acts.

Enforcement Scope: Accountability for drawing up violation reports and executing penalties lies with the People's Police, provincial and local authorities, Directors of the Departments of Finance, and specific state management regulators.