What are the regulation on prize-winning video game machine, currency and game rules under the latest decree in Vietnam?
- What is a prize-winning video game machine? What are the quantity and types of prize-winning video game machines and categories of prize-winning video games in Vietnam?
- What is a token? What are regulation on token management in Vietnam?
- General regulation of the law on the rules of prize-winning video games in Vietnam
What is a prize-winning video game machine? What are the quantity and types of prize-winning video game machines and categories of prize-winning video games in Vietnam?
According to the definition in Clause 3, Article 2 of Decree No. 121/2021/ND-CP, “Prize-winning video game machine” means a special-use electronic device permitted for commercial operation referred to in this Decree for prize-winning games installed therein. The playing process between players and machines is fully automated.
Quantity and types of prize-winning video game machines and categories of prize-winning video games according to Article 7 of Decree 121/2021/ND-CP are regulated as follows:
- The quantity of prize-winning video game machines shall be specified in the business eligibility certificate of an enterprise based on the total number of accommodation rooms in the accommodation establishment already put into business. For every 5 accommodation rooms, the enterprise may operate only one prize-winning video game machine.
- Enterprises engaged in the prize-winning video game business may operate types of prize-wining video game machines and categories of games on such machines as provided in Appendix I to this Decree.
- Before organizing the prize-winning video game business, an enterprise shall send to the Ministry of Finance, and provincial-level Department of Finance, Department of Culture, Sports and Tourism or Department of Culture and Sports (below collectively referred to as provincial-level Department of Culture, Sports and Tourism) and Tax Department a report on the quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines actually used for commercial operation for monitoring and management.
- In the course of business activities, an enterprise may change the quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines used for commercial operation but must ensure compliance with the provisions on quantity and types of prize-winning video game machines and categories of prize-winning video games and the ratio of machines used for commercial operation of this Decree and relevant regulations.
In case of a change in the quantity or type of prize-winning video game machines or categories of prize-winning video games and the ratio of machines used for commercial operation, within 5 working days after the change occurs, the enterprise shall send a report thereon to the Ministry of Finance, and provincial-level Department of Finance, Department of Culture, Sports and Tourism and Tax Department for monitoring and management.
What is a token? What are regulation on token management in Vietnam?
According to the definition in Clause 9 Article 2 of Decree 121/2021/ND-CP, “Token” means a coin, card, coupon or equivalent scores or another cash substitute used instead of money to serve the organization of prize-winning video games and valid for use only within a business facility.
The Token management is carried out in accordance with Article 12 of Decree 121/2021/ND-CP as follows:
- Tokens of enterprises must bear separate marks or signs for identification. The par value of tokens may be nominated in Vietnam dong or a freely convertible foreign currency. The conversion of foreign-currency par value of tokens into Vietnam dong must comply with the guidance of the State Bank of Vietnam. Enterprises may not use tokens of other enterprises for business purposes.
- Enterprises shall strictly manage their tokens under the guidance of the Ministry of Finance as a basis for determining their turnover, and send a notice of models, quantity and types of tokens to provincial-level Departments of Finance and Tax Departments for monitoring and management.
- In case of a change in the model, quantity or type of tokens, within 5 working days after the change occurs, an enterprise shall send a notice thereof to the provincial-level Department of Finance and Tax Department for monitoring and management.
General regulation of the law on the rules of prize-winning video games in Vietnam
The rules of the prize-winning video game will depend on each Business location proposing. However, according to Article 8 of Decree 121/2020/ND-CP, the criteria that each game rule at each business location must satisfy as follows:
- When putting prize-winning video games into business, enterprises shall draw up game rules suitable to gaming methods, payout ratio and particular designs of each type of game machine and send them to the Ministry of Finance, and provincial-level Departments of Finance and Tax Departments for monitoring. Game rules must be compliant with law and have all the following principal contents:
+ Description and interpretation of terms of prize-winning video games;
+ Images and use instructions of functions of game machines;
+ Playing methods; tokens (if any);
+ Payout ratio;
+ Method of determining a win;
+ Handling of unexpected problems;
+ Other contents depending on management requirements.
- Enterprises shall post up and issue leaflets publicizing game rules at their business facilities.
- When changing any content of game rules, within 5 working days after the change occurs, an enterprise shall send the revised or replaced game rules to the Ministry of Finance and provincial-level Department of Finance and Tax Department and a document clearly indicating the revised or replaced articles/clauses and reasons for the revision or replacement. At the same time, the enterprise shall publicly post up the revised or replaced game rules at its business facility.
- In case a state management agency detects that game rules contain details that are unclear, invalid or incompliant with law, within 5 working days after the Ministry of Finance issues an official letter requesting and guiding the revision of game rules, the concerned enterprise shall revise the game rules to be compliant with law and send them to the Ministry of Finance and provincial-level Department of Finance and Tax Department for monitoring.
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