Russian Law on Lotteries

The new law "On Lotteries" dated 11 November 2003 came into effect on 1st January 2004.

The Law is the first law in Russia regulating the procedure for the organisation and holding of lotteries and provides the legal foundation for the regulation by the State of the issues arising in connection with the organisation and holding of lottery games. It defines the permissible types and purposes of lotteries, the procedure for and supervision of their organisation and holding in the Russia and sets forth the mandatory requirements (normative rates) for lotteries, as well as defining the liabilities of people engaged in the organisation and holding of lotteries.

The Law divides all lotteries into drawing, non-drawing and combined type lotteries depending on how they are held as well as the circle of persons who are allowed to hold and act as organisers of all-Russian and international lotteries. The circle includes federal executive authorities and not-for-profit organisations that have the corresponding status.

A separate article of the Law is dedicated to issues of control over the organisation and holding of lotteries. The requirements and mandatory rates for lotteries have been systematised in order to enhance their efficiency. The Law provides for mandatory control over the awarding of prizes to be exercised by ad-hoc drawing commissions set up for such purposes.

Another article deals with lottery tickets and sets the requirements that must be met by issuers of such tickets. The Law provides remedies available to participants in lottery games for the protection of their rights (as persons having a contractual relations with the organiser of a lottery game).

In accordance with the Law, part of the lottery profit must be spent on funding socially important events and facilities, including sports, education, health, science, culture, arts, tourism and environmental protection in the Russian Federation.

The State is to regulate the issues arising in connection with lottery games by issuing licences to holding lottery games, by maintaining the State register of lotteries and by exercising control over the holding of lotteries, including inspections to ensure that the deductions made from lottery gains are used on funding socially important public needs.