The Consent Procedure and Its Advance Deadline
Article 31 of the Georgian Law on Gambling Games regulates how the lottery organizer obtains the consent of the Revenue Service. The lottery organizer must apply to the Revenue Service for consent concerning the organization of a game no later than 2 weeks before its organization, and submit the documents defined by the law. This advance deadline gives the controlling authority the opportunity to examine the submitted materials and assess the conditions of the lottery for legality before the tickets enter circulation. The documentary package differs for draw lotteries and instant lotteries, because the technology of these two types of game and the logic of delivering value to the player are different. Without consent the launch of the game is a violation of the law, and the quality of the submitted regulation largely determines how smoothly the examination proceeds.
Documents for a Draw Lottery
For organizing a draw lottery the Revenue Service receives: the draw lottery organization conditions, the regulation, which must cover the general rules of the game, the start date of the lottery, the bounded deadline and place for paying out winnings, the ticket price, the procedure and time limit for reviewing claims, and the number and numbering of the tickets to be printed; the contract between the lottery organizer and the person who prepares the draw lottery tickets, indicating the quantity and numbering of the tickets to be produced — except where the organizer prepares the tickets itself; and a sample of the draw lottery ticket. The listed elements of the regulation together expose the conditions essential for the player: what participation costs, when and where winnings are paid, how many tickets are printed and how they are numbered. The ticket sample verifies that the printed ticket corresponds to the approved form.
Documents for an Instant Lottery and Its Term
For an instant lottery the documentation follows the same structure: the organization conditions, the regulation, with the general rules of the game, the start date, the bounded deadline and place for paying out winnings, the ticket price, the procedure and time limit for reviewing claims, and the number and numbering of the tickets to be printed, additionally — the amount of the prize fund, the list of prizes, their quantity and the value per unit; the contract with the person preparing the tickets, unless the organizer prepares them itself; and the ticket sample. The detailization of the prize fund and the prizes is conditioned by the nature of the instant lottery: the result is determined on the spot, and the player must know what is being played out. The same article establishes that an instant lottery may be organized for a term of no more than 2 years — the maximum period during which an approved instant lottery may function.
Notification of Changes and Control of the Draw
The lottery organizer must notify the Revenue Service in writing 3 days in advance of other changes — a change of director, of legal address, the printing of an additional quantity of tickets and the like — that do not cause a substantial change of the game. The organizer is further charged with ensuring the publicity of the game rules and their unimpeded provision to players. For controlling the play-out of the prize fund a commission is created, which ensures the draw in observance of the organization conditions, the regulation, and in accordance with them; this commission must consist of at least 3 invited members independent of the lottery organizer. The independence requirement exists so that no doubt is cast on the integrity of the draw. Finally, the organizer must submit information on the course and results of the draws to the Revenue Service within 5 working days, which allows the authority to verify the results of the draws within an adequate time.
Prohibited Locations
Article 35 of the law extends the territorial prohibitions to lotteries as well: it is impermissible to organize lotteries, gambling and profit-making games, except promotional games, and to sell or distribute their tickets in children's, medical and educational institutions, cult buildings, children's sanatoriums, libraries, museums, administrative buildings of state government bodies and municipal bodies, as well as in locations prohibited by decision of the relevant municipal body, whether territorial zones or buildings. The relevant municipal body is authorized to define the locations where gambling and profit-making games, other than promotional games, may be organized, excluding the protected places listed above. These prohibitions determine where lottery tickets may and may not be sold, and municipal decisions add a locally determined ring of restrictions on top of the statutory list.
Frequently Asked Questions
How early must the Revenue Service be approached for consent?
No later than 2 weeks before the game is organized. The regulation must be submitted at that point, together, where applicable, with the contract with the ticket producer and a ticket sample.
If we print the tickets ourselves, is a contract still required?
No. The contract with the ticket producer is required only where another person prepares the tickets; where the organizer prepares them itself, the regulation and the sample suffice.
Where may a lottery not be organized or its tickets sold?
In children’s, medical and educational institutions, cult buildings, children’s sanatoriums, libraries, museums, administrative buildings of state and municipal bodies, and locations prohibited by the municipality.
Who controls the draw?
A commission of at least 3 invited members independent of the organizer; information on the results reaches the Service within 5 working days.
How We Help on Legal.ge
The lawyers of Legal.ge support lottery organizers from the preparation of consent to the control of the draw: we refine the regulation, check the documentary package, and align the distribution plan with the prohibited locations. Contact us, and the consent procedure will be planned without the risk of a violation.