‘Approved’
Financial Markets Supervisory
Authority of the Republic of Azerbaijan
Resolution № 1951100017
11 March 2019

Acting Chairman of the Management Board

___________________ Ibrahim Alyshov

Regulations on organization and conduction of promotional lotteries

1. General provisions

1.1. These Regulations have been developed in accordance with Articles 3.2.4, 3.2.5, 7.2, 7.4, 7.9, 8-2.2 and 10.1.7 of the Law of the Republic of Azerbaijan ‘on Lotteries’ (the Law) and determine procedures on control over organization and conduct of promotional lotteries by the lottery organizer (hereinafter - the Organizer), disclosure of information, preparation of lottery tickets, details of lottery tickets and other equivalent data carriers, storage of winning lottery tickets, a list of information on electronic lotteries to be reflected in information systems of personal information and submitting information on the organization and conduct of the lottery to the Financial Markets Supervisory Authority of the Republic of Azerbaijan (hereinafter - the FIMSA).
1.2. These Regulations do not apply to the organization and holding of competitions based on knowledge and skills of participants.

2. Terms of lotteries

2.1. The head of the executive body of the Organizer signs and stamps the decision on approval of the terms of the lottery and submits with the terms of the lottery.
2.2. Terms of the lottery should include:
2.2.1. Information on the Organizer (full name, taxpayer identification number, location and contact facilities);
2.2.2. The name and the form of the lottery;
2.2.3. Duration of the lottery;
2.2.4. The area where the lottery is held;
2.2.5. Information on lottery tickets (other equivalent data carriers) and the rules for their acquisition;
2.2.6. Information on the lottery prize fund (name and amount of each lottery prize (each draw) included in the prize fund, or total amount of the prize fund consisting only of cash without dividing the winnings);
2.2.7. Information on how to play the lottery winning fund (including date(s));
2.2.8. Information on acceptance by the Organizer of winning lottery tickets (other equivalent data carriers) and terms and procedure for issuance (payment) of winnings;
2.2.9. Whether it is possible to pay cash equivalent instead of non-cash winnings at the request of the lottery participant.

3. Requirements for lottery tickets (other equivalent data carriers)

3.1. Lottery tickets (equivalent other data carriers) should indicate the following details:
3.1.1. Full name and location of the Organizer;
3.1.2. the name and form of the lottery, including the words ‘promotional lottery’;
3.1.3. the number and/or series of the lottery ticket;
3.1.4. the date of drawing of the prize fund;
3.1.5. If the lottery consists of two or more draws, the serial number of the draw the lottery ticket is used in (except for the cases where the right to participate in the drawing of winning funds of several draws with a lottery ticket is set);
3.1.6. Information on the winning fund of the lottery;
3.1.7. Information on the terms of the lottery prize fund;
3.1.8. Information on the period of acceptance by the Organizer of winning lottery tickets for the issuance (payment) of winnings and the rules for the issuance (payment) of winnings;
3.1.9. information about the company that issues lottery tickets (except for lottery tickets used in electronic lotteries);
3.1.10. Information on obtaining the right to hold the lottery (including date).
3.2. If it is not possible to fully reflect the information specified in Item 3.1 herein in lottery tickets (other equivalent data carriers), this information should be provided to lottery participants on paper or electronically (by sending information to e-mail or mobile number).
3.3. The information provided in the lottery tickets should correspond to the one provided in the lottery terms.
3.4. Lottery tickets (other equivalent data carriers) should allow identification of the lottery (draw) they are used in, as well as determine whether they are winning.

4. Conduction of the lottery

4.1. The Organizer should submit the following documents to the FIMSA on paper or electronically, taking into account the requirements of Item 4.2 herein at least 20 (twenty) working days prior to the start of the lottery:
4.1.1. Notice on intention to hold a lottery (Annex № 1);
4.1.2. Terms of the lottery;
4.1.3. Sample lottery ticket (data carrier) to be used in the lottery;
4.1.4. A notarized copy of Organizer’s state registration certificate;
4.1.5. A copy of the document on registration of the organizer by tax authorities;
4.1.6. If the promotional lottery is conducted in accordance with the assignment agreement, a copy of the agreement certified by the person who commissioned the lottery.
4.2. The FIMSA obtains the documents or information at the disposal of another administrative body. If not possible, submission of these documents is requested by the relevant authority upon request of or provided by the Organizer.
4.3. Copies of the documents specified in sub-items 4.1.4 and 4.1.5 herein (except for the cases of changes to these documents) are not required to be submitted by the same Organizer during the appeals for next promotional lotteries.
4.4. The FIMSA within 15 (fifteen) working days from the date of submission of these documents requires elimination of shortcomings in the documents specified in Item 4.1 herein or prohibits holding of the lottery on the following grounds:
4.4.1. the documents specified in Item 4.1 herein are submitted to the FIMSA not in full;
4.4.2. submitted documents contain information that does not meet the requirements of the legislation on lotteries or is incomplete, inaccurate or distorted;
4.4.3. the Organizer applies to the FIMSA for a new lottery without fulfilling mandatory instructions established by the Law adopted by the latter in connection with it;
4.4.4. Less than 6 (six) months have passed since the date of termination by the court of the Organizer's promotional lottery.
4.5. If it is not prohibited to hold a promotional lottery within 15 (fifteen) working days from the date of submission of the documents specified in Item 4.1 herein, the Organizer obtains the right to hold the lottery
4.6. The Organizer may appeal against the decision to refuse to change the terms of the lottery, as well as the ban on the lottery in the administrative or judicial order.
4.7. It is not allowed to hold promotional lotteries that are prohibited to be held, as well as those that have not been authorized to be held.
4.8. Prior to starting the lottery, the Organizer should announce its terms in mass media.
4.9. The organizer should indicate in proposals for purchase of goods (works, services) stimulated by the lottery, as well as in proposals for participation in the lottery, including offers to win, terms of the lottery, or possible places to be acquainted with them, or provide a reference to obtain related information.

5. Making additions and/or changes to the terms of lottery

5.1. The decision to make additions and (or) changes to the terms of the lottery is made by the head of the executive body of the Organizer. Additions and (or) changes to the terms of the lottery by the Organizer are allowed only with the permission of the FIMSA.
5.2. To obtain permission to make additions and (or) changes to the terms of the lottery, the Organizer should submit the following to the FIMSA at least 15 (fifteen) business days prior to the date of drawing of the prize fund:
5.2.1. An application to issue a permit to make additions and/or changes to terms of the lottery. The application should contain the Organizer’s full name, location, name and form of the lottery, the date and number of the decision to make the addition and (or) changes to the terms of the lottery, as well as the date of entry into force of the additions and (or) changes;
5.2.2. A text of the addition and (or) changes to the terms of the lottery, certified by the seal of the Organizer and signed by the head of the executive body;
5.2.3. A new version of lottery terms.
5.3. No later than 5 (five) working days from the date of receipt of the documents specified in Item 5.2 herein the FIMSA decides to allow or refuse to make additions and (or) changes to the terms of the lottery. The decision to agree or refuse to change the terms of the lottery is submitted to the Organizer or sent by registered mail.
5.4. The FIMSA refuses to issue a permit to make additions and/or changes to the terms of the lottery if:
5.4.1. the documents specified in Item 5.2 herein are submitted to the FIMSA not in full;
5.4.2. Documents submitted to the FIMSA include additions that violate the legislation on lotteries, including restricting the rights of lottery participants, affecting the change of the form of the lottery, additions and (or) changes, the composition of the winning fund of the lottery with the participation of distributed lottery tickets (other equivalent data carriers) or reduce the size of the prize fund.
5.5. The Organizer should announce additions and (or) changes to the terms of the lottery through mass media at least 7 (seven) working days before the date of the prize fund.

6. Organization and conduction of electronic lotteries

6.1. The Organizer organizes and conducts electronic lotteries through information systems of personal data registered in accordance with the Law of the Republic of Azerbaijan ‘on Personal Data’ and in accordance with the legislation on e-commerce.
6.2. The information system is developed by the Organizer (or at its order).
6.3. The information system includes the following information:
6.3.1. Lottery participant’s first, last, middle names, date of birth;
6.3.2. Series and number of Lottery participant’s ID card, PIN code;
6.3.3. Lottery participant’s mobile number and e-mail.
6.4. The right to participate in the lottery is available only to holders of lottery tickets (other equivalent data carriers) who have reached the age of 18 and intend to participate in the lottery voluntarily.
6.5. The Organizer provides direct access in a view mode for the FIMSA to ensure control over the electronic information system and conduct searches for the name of the lottery, the form of the lottery, the number of draws and the date of the prize fund, the number and (or) series of lottery tickets, as well as personal data specified in Item 6.3 herein.

7. Drawing panel

7.1. The Organizer creates a drawing panel (excluding e-lotteries) that provides control over compliance of the prize fund with the legislation.
7.2. The drawing panel is created in an odd number of not less than 5 (five) persons.
7.3. The organizer appoints at least one member of the drawing panel from representatives of mass media or public organizations.
7.4. Officials of the Organizer, their family members (spouses, parents, children, adoptees, their spouses, siblings, nieces and nephews, in-laws, spouses of siblings, siblings of parents, foster parents and children), as well as the seller of the promotional lottery point (if he/she is an organizer of the promotional lottery) may not be members of the drawing panel.
7.5. The organizer should submit to the FIMSA information on the members of the drawing panel at least 1 (one) working day prior to the drawing of the prize fund in a form signed and stamped by the head of the executive body.
7.6. The head of the drawing panel is elected by members of the drawing panel by simple majority of votes.
7.7. Decisions of the drawing panel are made by simple majority of votes. A member of the drawing panel may not abstain when making a decision.
7.8. Results of the lottery prize fund are confirmed by an act signed by members of the drawing panel.
7.9. The drawing panel notes in the act on results of the drawing of the prize fund the violations revealed during the drawing of the prize fund and informs the FIMSA and the Organizer no later than 3 (three) working days.
7.10. Upon receipt of information on violation of the terms of the lottery during the drawing of the prize fund, the organizer suspends the issuance (payment) of prizes until the FIMSA makes the relevant decision.
7.11. If the drawing panel is established in violation of the requirements of the legislation, the FIMSA instructs the Organizer to make changes to the composition of the drawing panel.

8. Lottery prize fund and issue (payment) of winnings

8.1. The prize fund of the lottery is formed at least 1 (one) hour before the draw of this fund, and the prize fund of electronic lotteries before the start of the game.
8.2. The lottery prize fund should be used only for fulfillment of Organizer's obligations to the participants of the lottery.
8.3. The lottery prize fund should be played in full in the draw it relates to.
8.4. Information on the prize fund and the numbers and (or) series of winning lottery tickets are announced in mass media within 5 (five) working days after the drawing of the prize fund of each lottery draw.
8.5. Results of the drawing of the prize fund of each lottery draw of identification numbers of winning lottery tickets (if any) or indicators that allow to identify winning lottery tickets (other equivalent data carriers) or their owners, as well as winnings for each of them is disclosed by announcing through mass media.
8.6. The organizer should accept winning lottery tickets (other equivalent data carriers) for issuance (payment) of prizes at the first request of lottery participants in the manner and within the period specified in the terms of the lottery.
8.7. The period of acceptance of winning lottery tickets (other equivalent data carriers) by the Organizer starts no later than 7 (seven) working days from the date of playing the lottery prize and no less than 90 (ninety) working days
8.8. Winnings should be issued (paid) no later than 30 (thirty) business days from the date of receipt by the Organizer of the winning lottery ticket (other equivalent data carrier).
8.9. The Organizer should comply with the requirements of the Law of the Republic of Azerbaijan ‘on Prevention of Legalization of Criminally Obtained Funds or Other Property and the Financing of Terrorism’.
8.10. Where provided by the terms of the lottery, the Organizer, at the request of the lottery participant, should pay him/her monetary equivalent of the value of the non-cash prize.
8.11. When the organizer pays the prize to the lottery participant, the identity document of the lottery participant and the lottery ticket (and other equivalent data carriers) should be checked for winning.
8.12. Payment of winnings to persons under 18 is prohibited.
8.13. Winnings are paid to the lottery participant with pre-paid cards based on the ‘Regulations on issuance and usage of payment cards’.
8.14. The Organizer should store paid lottery tickets (in the database of electronic ticket information system) for 3 (three) years.
8.15. Upon receipt of information from the drawing panel on violation of the terms of the lottery during the drawing of the prize fund, the Organizer should suspend issuance (payment) of winnings until the FIMSA takes a relevant decision.

9. Suspension and termination of the lottery

9.1. In case of violation of the requirements of the legislation on lotteries or the terms of the lottery by the Organizer, the FIMSA notifies the former to eliminate such violations or decides to suspend the lottery.
9.2. The organizer should eliminate revealed violations within 20 (twenty) working days from the date of receipt of the notice or warning on suspension of the lottery and inform the FIMSA accordingly.
9.3. Upon receipt of information on elimination of violations from the Organizer, the FIMSA sends a written notice to it no later than 5 (five) working days on resumption or maintaining the suspension of the lottery with indication of unresolved violations.
9.4. If the organizer does not eliminate revealed violations within the period specified in Item 9.2 herein or does not provide information on their elimination, the FIMSA may file a petition in court to terminate the lottery.
9.5. The FIMSA terminates the lottery if:
9.5.1. the Organizer applies to the FIMSA to terminate the lottery;
9.5.2. the Organizer is liquidated;
9.5.3. there is a court decision.
9.6. If the organizer receives a notice on suspension or termination of the promotional lottery, it should announce it in mass media within 1 (one) working day.
9.7. The announcement by the Organizer on suspension or termination of the promotional lottery should include:
9.7.1. The organizer’s full name;
9.7.2. The name and the type of the lottery;
9.7.3. The date of the decision to suspend or terminate the lottery and the name of the decision-making body;
9.7.4. The basis for the decision to suspend or terminate the lottery;
9.7.5. The number of the failed draw and the date on which the prize fund is to be drawn.
9.8. In case of suspension or termination of the lottery, it is prohibited to make offers in any form to participate in the lottery.
9.9. Suspension or termination of the lottery does not relieve the Organizer of the obligation to issue (pay) the winnings.

10. Advertising lotteries

10.1. The Organizer acts as the customer of lottery advertising. Advertisements may be placed on lottery tickets (or other equivalent media).
10.2. Without a written consent of the lottery winner, the name cannot be disclosed in advertising.
10.3. The following is prohibited in advertising lotteries:
10.3.1. Appeal to non-adults;
10.3.2. Creating the idea that participation in lotteries is a means of gaining prestige in society;
10.3.3. Guaranteeing winnings in lotteries;
10.3.4. Discrediting those who do not participate in lotteries.
10.4. Lottery advertising can be placed in telecommunications, mass media, vehicles, and outdoor advertising media. Outdoor advertising of lotteries is placed on advertising media at least 100 meters away from children's and educational institutions.
10.5. Lottery advertising should contain or sound information on conditions, time and duration of the lottery, the prize fund, the place and time of prize giving, the conditions of receipt, their organizer.
10.6. Lottery ticket holders may not be offered alcoholic beverages, tobacco and tobacco products with a darkness of more than 5% as prizes.
10.7. Lotteries to stimulate sale of alcoholic beverages, tobacco and tobacco products with a darkness of more than 5 percent are prohibited.
10.8. Advertising of promotional lotteries prohibited or not authorized to be held is not allowed.

11. Organization of control

Control over the organization and conduct of lotteries is carried out based on reports submitted by the Organizer and on-site inspections by the FIMSA as prescribed by law.

12. Requirements for compiling and submission of reports

12.1. The organizer submits the following information and reports to the FIMSA:
12.1.1. at least 30 (thirty) minutes before the drawing of the lottery prize fund (until the start of the prize fund in electronic lotteries) - copies of documents confirming formation of the lottery prize fund;
12.1.2. at least 30 (thirty) minutes before the drawing of the prize fund of the draw (excluding electronic lotteries) - report on lottery tickets (Annex №2);
12.1.3. at least 1 (one) working day before the drawing of the prize fund - information on members of the drawing panel (Annex №3);
12.1.4. no later than 5 (working) working days from the date of completion of the drawing of the prize fund - a copy of the act drawn up by the drawing panel on results of the drawing of prize fund (Annex №4).
12.2. The following should be indicated in the lottery ticket report:
12.2.1. The organizer’s full name;
12.2.2. The lottery name, type and the number of the draw;
12.2.3. Date and time of drawing of the prize fund;
12.2.4. The number and identification numbers of lottery tickets (other equivalent data carriers) participating in the drawing of the prize fund.
12.3. Information on members of the drawing panel should include the following:
12.3.1. The organizer’s full name;
12.3.2. The lottery name, type and the form of holding;
12.3.3. The number of the draw (if the lottery consists of several draws) and the date of drawing of the prize fund;
12.3.4. 1st, last, middle names and place of employment of every drawing panel member.
12.4. The following should be indicated in the act on results of the drawing of the prize fund:
12.4.1. The organizer’s full name;
12.4.2. The lottery name, type and the form of holding;
12.4.3. Start and completion date of the lottery;
12.4.4. A series number of the draw (if the lottery consists of several draws) and the date of drawing of the prize fund;
12.4.5. The name and date of issue of mass media outlet in which results of the drawing of the prize fund are published;
12.4.6. Sequential indicators that allow determining whether lottery tickets (other equivalent data carriers) are winning tickets;
12.4.7. identification numbers of winning lottery tickets by drawing, or other indicators that allow to identify winning lottery tickets (other equivalent data carriers) or their owners, and the winnings for each of them;
12.4.8. 1st, last, middle names, the place of employment and signature of every member of the drawing panel.
12.5. The information and reports provided for in Item 12.1 herein should be certified by the signature and seal of the head of the executive body of the Organizer or a strengthened electronic signature.
12.6. If the Organizer fails to submit the report and information specified in Item 12.1 herein to the FIMSA within the required period, the FIMSA issues a written instruction to the Organizer within 3 (three) working days. The instruction requires an explanation of the reasons for non-submission of reports together with the reports within 7 (seven) working days.
12.7. The FIMSA checks compliance of reports with the requirements herein, and in case of deficiencies, instructs to make appropriate changes to reports and eliminate deficiencies. Within 5 (five) working days after notification of the Organizer on shortcomings in reports, the Organizer eliminates them and re-submits reports and required written information to the FIMSA.
12.8. Failure of the organizer to submit reports as prescribed by these Regulations entails obligation under the Code of Administrative Offenses of the Republic of Azerbaijan

13. Inspection

13.1. The FIMSA conducts on-site inspections to verify compliance of the organization, the conduct of lotteries with the law, and protect the rights of lottery participants.
13.2. The FIMSA takes into account the requirements of Article 2.2 of the Law of the Republic of Azerbaijan ‘on regulation of inspections in entrepreneurship and protection of interests of entrepreneurs’ when inspecting the Organizer.
13.3. Inspection is carried out in the following cases:
13.3.1. incorrect or distorted information is found in reports submitted by the organizer;
13.3.2. for on-site investigation of incoming complaints(s) and information on the source of information about illegal operations;
13.3.3. in case of violation of the requirements of the legislation;
13.3.4. for the purpose of checking the conduct of drawing of prize funds in accordance with the requirements of the legislation.
13.4. The inspection is carried out based on a document approved by the decision of the FIMSA (signed inspection card). The inspection card contains the number and the date of the decision, the name of the Organizer and the taxpayer identification number, the address of the Organizer, 1st, last, middle names, position of inspector(s) and duration of the inspection (including start and end dates) and a reference to the relevant case specified in Item 13.3 herein. The inspection certificate is drawn up in two copies.
13.5. A copy of the inspection card remains with the Organizer and the other with the FIMSA.
13.6. The inspection period should not exceed 5 (five) working days. The period of inspection is deemed to have begun from the date of submission of the inspection card to the Organizer and completed from the date of submission of the inspection report to the Organizer in accordance with Item 13.9 herein.
13.7. During the inspection, authorized persons of the Organizer should create necessary conditions for the inspection team of the FIMSA to perform their duties, provide information and documents, as well as provide access to relevant information systems. Inspections are carried out during the working day and during the working hours of the Organizer.
13.8. Within 3 (three) working days from the date of completion of the inspection, the inspection report on the issues covered by the inspection, identified deficiencies and violations is prepared and signed by the employees of the FIMSA in duplicate.
13.9. Within one day after the inspection report is signed by the inspection team of the FIMSA, one copy is submitted to the Organizer for signing on paper or sent by registered mail on the same day, and the other copy remains in the FIMSA.
13.10. The organizer gets acquainted with the inspection report within 5 (five) working days from the date of its receipt and submits it to the FIMSA upon signing.
13.11. If a copy of the inspection report is not submitted to the FIMSA within this period, a note to this effect is made in the remaining copy of the FIMSA.
13.12. If the organizer does not agree with the findings reflected in the report, he/she signs the inspection report and adds a related explanation to the report.