Translation from Lithuanian

Translation from Lithuanian Translation from Lithuanian The Government of the Republic of Lithuania R E S O L U T I O N No. 572 On the Approval of Provisional Regulations for the Establishment and Operation of Gambling Houses, the Organization of other Gambling Games, and the Issuance of Permits (Licenses) to Organize such Activities Vilnius, 27 July 1993, The Government of the Republic of Lithuania r e s o l v e s :

1. To approve provisional regulations for the establishment and operation of gambling houses, the organization of other gambling games, and the issuance of permits (licenses) to organize such activities. These regulations are valid until the Law regulating the activities of gambling games.
2. To instruct the Ministry of Finance alongside with the Gambling Commission to define and approve a form of report on organization of gambling games to be submitted by entities organizing gambling games in due time.
3. The Gambling Commission with the help of specialists of the Republic of Lithuania and foreign specialists must prepare and submit to the Government of the Republic of Lithuania the draft law on the activities of gambling games in the Republic of Lithuania. Prime Minister Adolfas Ðleþevièius Minister of Finance Eduardas Vilkelis APPROVED by Resolution No. 572 of 27 July 1993 of the Government of the Republic of Lithuania Provisional Regulations for the Establishment and Operation of Gambling Houses, the Organization of other Gambling Games, and the Issuance of Permits (Licenses) to Organize such Activities General Provisions
4. These regulations regulate the establishment and operation of gambling houses, the organization of other games of chance, the issuance of permits (licenses) for these activities, and defines the entities organizing gambling games.
5. The following terms are used in these regulations: 2.
6. Gambling is a Game of Chance (hereinafter, Game), the organization of which is determined according to the rules established by the natural or legal persons organizing the Game, and Game Players (hereinafter, Gamblers or Players) seeking financial or material gain, who willingly risk losing the amount of money paid to participate (the Bet), and Game winners are determined by luck; 2.
7. A Numbers Lottery is a Game in which the Player wins by correctly choosing numbers or other symbols, and the amount won (depends on the amount paid to participate in the Lottery; 2.
8. A Cash (or Monetary) Lottery is a Game in which the Player participates by purchasing Lottery Tickets or other tokens denoting participation in the Game, and the entity organizing the Lottery pays out only Monetary (hereinafter Cash) prizes. 2.
9. A Raffle is a Game in which the Player participates by purchasing Raffle Tickets or other tokens denoting participation in the Game, and the organizer of the Game provides only material (other than Cash) prizes; 2.
10. A Cylindrical Game (Roulette) is a Game in which the Player wins by correctly choosing numbers or other symbols, the amount won depends on the amount bet and a predetermined ratio used in calculating winnings, and the result of the Game is determined by a spinning device (the Cylinder). 2.
11. A Card Game is a Game in which the Player participates by playing "blackjack", "poker", "baccarat" , etc. 2.
12. An Automated Game (hereinafter Slot Machine) is a Game in which winning and losing are determined by a Machine designed for that purpose. 2.
13. Cash Bingo is a Game in which the Player participates by purchasing a pre-selected array of numbers, and the natural or legal person organizing the Game pays out winnings only in Cash, the amount of which depends on the amount Bet. 2.
14. Prize Bingo is a Game in which the Player participates by purchasing a pre-selected array of numbers, and the natural or legal person organizing the Game pays out only material (other than Cash) prizes. 2.
15. Totalizator is a Game based on betting on the outcome of a contest involving people or animals. Participants in the betting pay in a pre-determined Bet, and the natural or legal person organizing the Game pays out only Cash prizes, the amount of which depends on the amount Bet. 2.
16. A Gambling House is a site at which one or more forms of Gambling are organized according to set rules. 2.
17. A Casino is a Gambling House, in which, according to set rules, Cylindrical Games (Roulette), Card Games, and Slot Machines are organized (not more than 5 Slot Machines may be mounted on one Game table); 2.
18. A Slot Machine Parlour is a site at which, according to set rules, Gambling using Slot Machines is organized, and at which no fewer than 6 Slot Machines are mounted. 2.
19. A Cash Bingo Hall is a site at which Bingo for Cash Games are organized according to set rules. 2.
20. A Pari-mutuel Betting Site is a site at which Bets are placed according to set rules during a Totalizator event. II. The Organization of Games
21. The following Games are legal in the Republic of Lithuania: Numbers Lotteries, Cash Lotteries, Raffles, Cylindrical Games (Roulette), Card Games, Slot Machines, Cash Bingo, Prize Bingo, and Totalizator; Gambling Houses which organize these Games may be established. The Gambling Commission determines to which category Games not listed in this Article belong, and whether such Games may be organized.
22. The Gambling Commission issues permits (licenses) to organize the Games provided for by Article
24. Permits (licenses) to organize Games may only be issued to economic entities registered within the Republic of Lithuania.
25. The State retains the exclusive right to organize Numbers or Cash Lotteries and Totalizator. For that purpose, the Ministry of Finance establishes appropriate State organizations (enterprises) or issues permits (licenses) to appropriate enterprises (organizations) to organize such Games. The Gambling Commission ratifies the regulations for organizing such Games. Only non-profit organizations (enterprises) may organize Raffles and Prize Bingo Games. The profits which these organizations (enterprises) obtain must be allocated to finance the charitable activity which is indicated on the issued permit (license) and confirmed in the Game regulations. Except as provided for by Article 8, other Games may be organized only by economic entities which specialize in the organization of one or several forms of gambling and have been established exclusively for that kind of activity.
26. Cylindrical Games (Roulette) and Card Games may be organized only by Casinos, while Slot Machines may be installed only in Casinos and Slot Machine Parlors, except in the case provided for in Article
28. Provided that the number of Slot Machines does not exceed 5, the probability of winning is not less than 0.6, one play does not exceed 15 seconds, and the maximum winning in a single play does not exceed 100 times the Bet placed, Games may be organized on the basis of individual Machines situated at sites designated for that purpose (movie theaters, cafes, bars, restaurant lobbies, etc.). In this case, it is not necessary to establish a specialized enterprise, however the natural and legal persons involved are required to constantly provide data about revenues received and expenses incurred, which are related to the use of an individual Slot Machine, as well as about the overall financial situation of said natural or legal person.
29. Natural and legal persons organizing Games may advertise in the mass-media (periodicals, radio, television) of the Republic of Lithuania only the sites at which Games are being organized, the conditions for participating in them, the addresses of sites at which Lottery Tickets will be sold or bets for participation in Games can be placed. It is forbidden to insistently urge the public to participate in Games, to advertise the benefits and advantages of Gambling.
30. The value of a Prize in a Game may not be less than the cost of a Game Ticket or other token denoting participation in the Game, or of the Bet placed.
31. The overall winnings of a Numbers Lottery, Totalizator, or a Cash Bingo Game may not be less than 50 percent of the total of all Bets placed, while those of a Cash Lottery or a Raffle may not be less than 45 percent of the total price of all the Lottery Tickets prepared for sale, or the total price of the other tokens denoting participation in the Game.
32. Game winnings are paid out upon the presentation by the claimant of Game Tickets or other tokens denoting participation in the Game, except for cases in which the rules of the Game explicitly provide otherwise. The amount won or lost by the participant is his/her personal secret, which the natural or legal person organizing the Game is obliged to keep confidential. The amount won or lost may be revealed only to individuals authorized by the Minister of Finance exercising supervision or control, as well as to individuals, as provided for by the laws of the Republic of Lithuania, or institutions authorized by normative acts which it has established.
33. If a winner so requests, the legal and natural persons organizing the game or working under contract, shall provide a written nominal certificate.The Commission determines the form of this certificate and issues it.
34. Natural and legal persons, seeking to gain an operation license for totalisator during a contest, must have the permission of the contest organizers.
35. Only persons having reached the age of 18 may enter the premises of a gambling house and participate in the games. Upon each entry to a casino or a cash bingo hall, individuals must pay the fee provided for in the decree " On State Duties " (No.163 of March 12, 1993), approved by the Government. Persons obliged to supervise and control, persons authorized by the minister of Finances and other persons, as provided for by laws or decrees of the Government or its authorized institutions, are exempt from these fees. Upon payment of said fee, the individual is provided with a 9receipt stamped by a cash register which allows entrance to the premises. The Collector applies the fees received to the local municipality of the site at which the gambling house is situated. The natural and legal persons organizing the games cover all costs related to the collection of said fees.
36. At least one person from the management board of natural and legal persons organizing the games shall have a qualification certificate approved by the Gambling Commission, or have passed the qualification exams, organized by said Commission.
37. Natural and legal persons, organizing games or establishing a casino, must install a game control system, which would enable the supervision of games and the settling of all disputes, related to the organization of games, with the use of a videofilm. Only persons, authorized by the Minister of Finance, and other persons, as determined by the laws of the Republic of Lithuania or other normative acts approved by the Government or its authorized institutions, shall have the right to view said videofilms.
38. Every site at which games are organized shall have supplementary sources and supplies of electricity, ensuring that games proceed without interruption.
39. The Commission defines the requirements for the amount of start-up capital which natural and legal persons, intending to open a casino, a slot machine parlor or a cash bingo hall must provide.
40. The start-up capital of companies organizing games may be raised only by distributing nominal shares, while shareholders, wishing to sell their shares or to use them as collateral, may do so only with the permission of the Commission.
41. The natural or legal person to whom a license to organize games has been granted, may not authorize another natural or legal person (either from the Republic of Lithuania or abroad) to act on his behalf in activities related to those games.
42. Gambling houses may be opened in accordance with the following: 22.1 Casinos - in cities having: 50 000 - 100 000 residents, 1 casino; 100 000 - 400 000 residents, 2 casinos; more than 400 000 residents, 3 casinos. 22.2 Slot machine parlors - in cities having: 20 000 - 50 000 residents, 1 parlor; 50 000 - 100 000 residents, 2 parlors; 100 000 - 400 000 residents, 3 parlors; more than 400 000 residents, 4 parlors. Casinos, slot machine parlors, and individual slot machines may be established on ocean cruise liners and passenger ferries, subject to the condition that the operation of games commences 30 minutes after departure from the port and ends 30 minutes before arrival at the requisite port of destination; 22.3 Cash Bingo Halls - in cities having: 20 000 - 100 000 residents, 1 hall; 100 000 - 400 000 residents, 2 halls; more than 400 000 residents, 3 halls.
43. Additional gambling houses may be established at tourist sites. At one tourist site, one casino, one slot machine parlor, and one cash bingo hall may be established. The overall number of gambling houses at one tourist attraction shall not exceed four casinos, 5 slot machine parlors and 4 cash bingo halls. The Gambling Commission, in cooperation with the State Tourism Office, defines a list of tourism places. The Gambling Commission, as proposed by municipal and regional authorities, may add new places to the list, provided that the economic entities, seeking to organize games in said places, pledge to transfer part of their profits for recreation, health or tourism purposes.
44. In the event that there are more entities wanting to organize games than provided for in Article 23, the Gambling Commission shall issue a request for tender offers and, with the help of experts, will select from the applicants through a contest. III. The issuance of permits (licenses) to organize games, and the suspension and annulment thereof
45. Natural and legal persons who wish to obtain a permit (license) to organize any form of gambling games, must submit proposed game rules for approval by the Gambling Commission. These rules shall be reviewed by the Commission no more than twice. The Commission shall approve, or refuse to approve, said rules within 50 days.
46. The rules of the game shall cover: 26.
47. Special conditions of the game or betting procedures; 26.
48. The rights and responsibilities of the gamblers (participants); 26.
49. A description of the natural or legal person, organizing the game; 26.
50. The procedures by which participants may lodge complaints, and the basis and methods used in evaluating such complaints; 26.
51. The size and means of payment of game capital that is to be used to pay out winnings without delay. All amendments to the rules shall be coordinated with the Gambling Commission (presented for approval by that Commission). The natural or legal persons organizing games, shall guarantee the participants the possibility to examine the rules.
52. Persons, who wish to obtain a permit (license) to organize, in accordance with approved rules, cylindrical gambling games, card-playing, slot machines, cash bingo games and Pari-mutuel betting, must present the following documents and information to the Gambling Commission: 27.
53. the bylaws (proposal thereof) of the firm that is being established; 27.
54. notarized copies of the founding and registration documents of the said firm; 27.
55. a list of founding members who hold more than 1/10 of the founding capital, members of the council, board and revisors commission, and information about the financial conditions of founding members. Individual (private) firms, genuine economic associations, trusts, state firms (or those belonging to local authorities), agricultural cooperatives and non-profit organizations (companies) provide analogous information, which is consistent with their internal structure; 27.4 a description of the building or site at which a gambling center is to be established, including a clear construction plan and general information; 27.
56. copies of documents affirming the right to manage (or an agreement which provides that right) gambling equipment and the building (facility) in which such games and betting will be organized; 27.
57. date on which activities will begin; 27.
58. the kinds of games that are provided for, their numbers, and information about the rules that will apply; 27.
59. information about the anticipated staff and their responsibilities; 27.
60. a description of the operation of the gambling house or pari-mutuel betting site; 27.
61. procedures for the safeguarding and accounting of moneys earned from gambling; 27.
62. a financial and economic proposal for the game being organized, that indicates the investments that are expected to be used, their form and amount, duration of use, and provides an account of expected income (profits) and expenses; 27.
63. the rules of the game; 27.
64. when required, the agreement described in Article 14; 27.
65. the opinion of the municipal or regional authorities on the issue of establishing a gambling house.
66. Natural or Legal persons, who wish to obtain a permit (license) to organize, in accordance with approved rules, a raffle or a prize bingo game must, in addition, provide the Gambling Commission with the following: 28.1 a description of the game; 28.
67. a description of the location (site) at which the game is planned to be held; 28.
68. the planned time at which the game will be held; 28.
69. information about how the anticipated profits will be used; 28.5 documents affirming the establishment of a risk fund, which is being accumulated according to the procedures provided for in Article 34, or other securities which would confirm the establishment of said fund.
70. Shareholders, holding more than 1/10 of company's founding capital, members of the council, board and revision Commission, persons requesting operation licenses, natural persons, acting on behalf of others in obtaining the operation license for a prize lottery or a prize bingo game, shall present evidence that they have never been convicted for deliberate criminal acts. Individual (private) firms, genuine economic associations, trusts, state (or belonging to local authorities) firms, agricultural cooperatives and non-profit organizations (companies) provide analogous information, which is consistent with their internal structure.
71. The Ministry of Finance issues a standard permit (license) to organize games. Attached to the permit (license) are the approved rules of the games.
72. An issued permit (license) ceases to be valid if, within one year of its date of issue, the gambling house, Pari-mutuel betting site or group of individual slot machines has not begun operation.
73. Operation licenses are granted for no more than 3 years. Operation licenses may be given for a longer period, but not for more than 5 years, if the building in which the games will be held will not be finished until after the date of issue of said license, or if said building is in need of major repairs.
74. A separate operation license is issued for each lottery and bingo game, also for each gambling house or slot machine group.
75. Natural and legal persons seeking to organize the games defined in Article 27 of these regulations, shall establish risk fund. This fund guarantees that winnings will be paid out promptly, and will help to temporarily avoid financial claims against the organizers in case of temporary misfortune. This fund is kept in the Ministry of Finance. The Gambling Commission determines sources of said fund and the ways in which it is to be formed, used, replenished, and liquidated.
76. If the natural or legal person, to whom an operation license has been issued, violates the laws of the Republic of Lithuania, other normative acts approved by the Government or it authorized institutions, these regulations,the game rules, or the conditions of the operation license,the Gambling Commission may suspend said operation license, upon informing said natural or legal persons in writing, for a period of time not exceeding 30 days.
77. The Commission revokes the operation license in the event that: 36.
78. after 30 days of suspension the causes of the violations have not been remedied, or such violations have been repeated; 36.
79. the founding capital of the economic entity falls below the minimum determined by the Commission. Natural and legal persons, whose permits (licenses) have been revoked by the Commission, may appeal that decision.
80. If there are more persons willing to organize games and to abide by the regulations provided herein, than are provided for by Article 22, the Commission shall solicit tender offers, and select among the possible candidates through a contest, having consulted with experts. _________________________