Goltsblat BLP advises that
Federal Law No. 416-FZ of 28 December 2013 "On Amending the Federal Law "On
Lotteries" and Certain Legislative Acts of the Russian Federation" (the “Law”)
comes into force on 30 January 2014.
The key amendments made by the
Law include the following:
incentive lotteries may be held from 30 January 2014 to 1 July 2014.
The lawmakers’ intention in instituting this ban is to put an end to gambling
practices in the guise of incentive lotteries permitted through a simplified
procedure (i.e., by notification).
procedure for organising and conducting lotteries has been amended. For
instance, from 30 January 2014, only bodies duly authorised by the Russian
Government to organise lottery tenders, sign lottery contracts with lottery
operators and approve lottery rules may act as lottery organisers.
Lottery operators are legal entities registered under the Russian
legislation that have concluded lottery operation contracts with lottery
organisers. The Law sets out the tender rules for awarding lottery operation
contracts, requirements on bidders, tender admission terms, etc.
operation terms are developed by lottery operators at the tender
stage for lottery operation contracts. Lottery organisers approve the lottery
terms on the basis of those provided by the winners of tenders for lottery
are to be conducted within 15 years but this term may be extended by
the Russian Government on the lottery organiser’s initiative.
procedure for conclusion of contracts between lottery operators and
players has been specified. Such contracts may only be made by
issuing a lottery ticket, quittance or electronic lottery ticket specifying
the game combination chosen by the player.
Law lists the specific mandatory details for lottery and, now
also, electronic lottery tickets, as well as the information
that must be published on the Internet by operators conducting lotteries using
electronic lottery tickets.
Law imposes a new obligation on lottery operators, i.e., to provide an
irrevocable bank guarantee securing their obligations to make purpose
payments. The bank guarantee must be valid for at least five years and must be
issued by any of the banks included on the list of complying banks whose
guarantees may be accepted for taxation purposes (article 74.1 of the Tax Code
of the Russian Federation).
lotteries (other than international and all-Russia state ones)
are now prohibited, as is gambling in the guise of lotteries
or lotteries using gaming equipment, including game machines.
of lottery tickets and electronic lottery tickets and installation of
lottery terminals in buildings accommodating children's, educational,
religious and certain other organisations are now
liability for violating the lottery legislation has been
changed. Under the new version of article 14.27 of the Code of Administrative
Offences of the Russian Federation, lotteries conducted without permission
from the Russian Government entail an administrative fine on individuals,
officials and legal entities of from 2000 to 2500 roubles, from 8000 to 20000
roubles, and from 200000 to 300000 roubles, respectively. The article has been
supplemented by new administrative offences: failure i) to publish annual
lottery reports or ii) to comply with the lottery ticket requirements
(punishable by an administrative fine on officials and companies of from 8000
to 20000 roubles and from 40000 to 60000 roubles,
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