ARRANGEMENT OF SECTIONS
1. Short title
ESTABLISHMENT OF NATIONAL LOTTERIES BOARD
3. Establishment of the National Lotteries Board
4. Composition of the Board
5. Qualifications of Members
6. Chairperson of the Board
7. Tenure and vacation of office of members
8. Meetings of the Board
10. Functions of the Board
11. Powers of the Board
12. Secretariat of the Board
13. Executive Director of the Board
14. Other employees
15. Procedures for the Board
16. Annual Report
17. Funds of the Board
19. Accounts and audit
20. Financial year
LICENSING OF THE NATIONAL LOTTERY
21. Licence to conduct the National Lottery
22. Requirements and conditions of licence
23. Variation of conditions of licence
24. Enforcement of conditions of licence
25. Grounds for revocation of licence
26. Notice of revocation
27. Suspension of licence
28. Revocation of licence
ESTABLISHMENT OF NATIONAL LOTTERY DISTRIBUTION FUND
29. Establishment of National Lottery Distribution Fund
30. Fund to vest in and be administered by the Board
31. Revenue of the Fund
32. Banking account
33. Investment of money not immediately required
34. Allocation of money in the Fund
35. Payments from Fund in respect of expenses
AUTHORIZATION OF OTHER LOTTERIES
36. Authorization of other lotteries
37. Powers of the Board in respect of other lotteries
38. Imposition of conditions in respect of other lotteries
39. Utilization of gross proceeds of a lottery for certain purposes
40. Prescribed fees
41. Invalid conditions by promoters
42. Power to require incorporation by promoters
43. Lotteries incidental to certain entertainment
44. Private lotteries
OFFENCES AND PENALTIES
45. Offences by bodies corporate
46. Unauthorized lotteries
47. General offences
48. Offences relating to National Lottery
50. Regulations in respect of National Lottery and other lotteries
52. Lottery debt enforcement
9 of 2003
An Act to provide for the regulation of National Lotteries and other lotteries; for the control and licensing of other lotteries, for the generation of funds for economic development and matters connected with or incidental thereto
[19TH SEPTEMBER 2003]
This Act may be cited as the Lotteries Act.
In this Act, unless the context otherwise requires—
“Board” means the National Lotteries Board established under section 3;
“Chairperson” means the person designated as Chairperson of the Board under section 6;
“date” means in relation to a lottery, the date on which the winners of that lottery are determined;
“licensee” means the person to whom the licence for the National Lottery has been issued under subsection (1) of section 2;
“lottery” includes any game, scheme, arrangement, system plan, promotional competition or device of distributing prizes by lot or chance and any game, scheme, arrangement, system, plan, competition or device, which the Minister may by notice in the Gazette declare to be a lottery;
“National Lottery” means the lottery contemplated in section 21 and includes all the lotteries conducted under the licence for the National Lottery, taken as a whole;
“net proceeds of the National Lottery” means the sums that are payable to the Board under paragraph (e) of subsection (3) of section 22 but not the sums which are paid in prizes of the National Lottery;
“newspaper” includes a journal, magazine or other periodical publication;
“participant”, in relation to a lottery, means a person who is in possession of a valid ticket in that lottery;
“place” means any place, whether or not it is a public place and includes any premises, building, dwelling, flat, room, office, shop, structure, vehicle, vessel or aircraft;
“prescribe” means prescribe by the Minister by regulation;
“political office” means the office of a Cabinet Minister, a Member of Parliament, a Member of a City, Town or District Council, as the case may be;
“prize” means the prize awarded to the winner of a lottery;
“promoters” means persons promoting other lotteries referred to in section 36;
“software” means a set of instructions fixed or stored in any manner and which, when used directly or indirectly in a computer, directs its operation to bring about a result;
“subscription” means the payment, or delivery of any money goods article, matter or thing, including any ticket, coupon or entry form, for the right to compete in a lottery;
“ticket” means, in relation to a lottery, any symbol, sign, token, coupon, warrant, card, printed paper, document or list or any other means or device which confers or purports to confer the right to take part in a lottery and which is issued by or on behalf of the lottery in question.
ESTABLISHMENT OF NATIONAL LOTTERIES BOARD
There is hereby established a Board to be known as the National Lotteries Board (hereinafter referred to as the “Board”) which shall be a body corporate with perpetual succession and a common seal and shall have the capacity of suing and being sued and, subject to the provisions of this Act, of doing all such acts as a body corporate may by law perform.
(1) The Board shall consist of not more than nine (9) and not less than six (6) members to be appointed by the Minister.
(2) In order for the Board to fulfill its mandate effectively the composition of the Board shall include—
(a) a person with a business and an accounting background;
(b) a person with a social rehabilitation background who has been in practice for not less than five (5) years;
(c) a person with a legal background and is registered to practice in Malawi;
(d) a person with law enforcement experience not below the rank of Commissioner;
(e) a person with knowledge and experience in the operation of lotteries and who is not in any gainful employment with any lottery operator; and
(f) four ex officio members.
(3) In making an appointment under this section, the Minister shall require the person to be appointed to declare whether he has any, and if so what, financial interest in any lottery undertaking operating in Malawi.
The person to be appointed as a Member of the Board shall be—
(a) a Malawian of not less than twenty-five (25) years of age;
(b) a person who has not been declared bankrupt for the last five (5) years;
(c) a person who has not been convicted of any criminal offence for the past five (5) years; and
(d) a person who is not holding a political office.
The Minister shall designate one of the members appointed under section 4, other than an ex officio member, as Chairperson.
(1) The members of the Board, other than ex officio members, shall hold office for a period of three years but shall be eligible for re-appointment for one more term.
(2) Any member of the Board, other than an ex officio member, may at any time, by notice in writing to the Minister, resign from his office.
(3) The office of a member, other than an ex officio member shall become vacant—
(a) upon his death;
(b) if he is adjudged bankrupt;
(c) if he is convicted of an offence and sentenced to imprisonment;
(d) if he is mentally or physically incapable of performing his duties as a member of the Board;
(e) if he is guilty of gross misconduct and is so notified in writing by the Minister; or
(f) if he is absent from three consecutive meetings of the Board, for which he has had notice, without any reasonable excuse.
(1) The Chairperson shall preside over every meeting of the Board, but in the event of the Chairperson being absent from any meeting of the Board, the members present shall elect from among their number a person to preside over that meeting.
(2) At all meetings of the Board, six (6) members shall form a quorum.
(3) Meetings of the Board shall be held at least once in every three months and at such other times and at such places as the Chairperson may determine.
(4) The Chairperson shall have a deliberative vote and, in the case of an equality of votes, shall also have a casting vote.
(5) The Board may invite, for such a period of time as it thinks fit, any person whose knowledge or advice it may require, but a person so invited shall not be entitled to vote at any meeting of the Board or be counted as a member for the purpose of forming a quorum.
The members of the Board shall be paid such remuneration and allowances as the Minister may determine.
The Board shall have the following functions—
(b) ensure that—
(i) the National Lottery is conducted with all due propriety and strictly in accordance with the provisions of the Constitution, this Act, all other applicable laws and the licence for the National Lottery together with any agreement pertaining to that licence;
(ii) the interest of every participant in the National Lottery are adequately protected; and
(iii) subject to subparagraphs (i) and (ii), the net proceeds of the National Lottery are as large as possible;
(c) monitor, regulate and police all lotteries;
(d) advise the Minister of percentages of money to be allocated or review the percentage under paragraph (e) of subsection (3) of section 22 as required;
(e) advise the Minister on the efficacy of legislation pertaining to lotteries and ancillary matters;
(f) administer and invest the money paid to the Board in accordance with this Act and the licence for the National Lottery;
(g) perform such additional duties in respect of lotteries as the Minister may assign to the Board;
(h) ensure that arrangements are made as may be specified in the licence for the protection of prize monies and sums for distribution;
(i) advise the Minister on any matter relating to the National Lottery and on any other matter upon which the Minister requires the advice of the Board; and
(j) set up a fund for prize money.
The Board shall have the following powers to—
(a) acquire and dispose of assets of the Board;
(b) set up a secretariat and employ management staff with appropriate qualifications;
(c) generate revenue;
(d) ensure that the winners in a lottery are paid their prize money promptly;
(e) ensure that part of the funds generated are channeled towards poverty reduction programs, including to sectors such as sports, culture, small medium enterprises and social welfare services; and
(f) develop guidelines for the operation of the National Lottery business in Malawi.
The Secretariat of the Board shall consist of a chief executive officer and other employees of the Board appointed under this Act.
(1) The Board shall appoint, on such terms and conditions as it may determine, an Executive Director of the Board who shall be the Secretary of the Board as well as the Chief Executive Officer of the Board and in addition shall perform such duties as the Board shall assign to his office and ensure the effective administration and implementation of this Act.
(2) Without derogation from the generality of the responsibilities and duties of the Executive Director conferred under subsection (1), the Executive Director shall be responsible for the day-to-day administration of the Board.
(3) The Executive Director or such other officer of the Board as the Executive Director may designate, shall attend meetings of the Board and may address such meetings, but shall not vote on any matter:
Provided that the person presiding at any meeting may, for good cause, require the Executive Director or such other officer to withdraw from such meetings.
(1) The Board may appoint, on such terms and conditions as it may determine, such other employees, subordinate to the Executive Director, as it considers necessary for the performance of its functions and to assist the Executive Director in discharging his duties.
(2) The Board may delegate to the Executive Director the appointment of employees of such junior ranks, as the Board shall specify.
(1) The Chairperson or another person duly authorized by the Board shall sign all licences issued under this Act and all communications from the Board, and such documents may be published in the Gazette.
(2) The application of the seal of the Board shall be authenticated by the signatures of the Chairperson or some other members of the Board duly authorized by the Board to authenticate the application of the seal thereof.
(1) The Board shall, within three months after the end of each financial year, furnish to the Minister the full report on the exercise and performance of its functions during that year and such report shall include financial statements duly audited, the report of the auditors and such other information as the Minister may by notice in writing to the Board, require.
(2) The Minister shall, after receiving the Report referred to in subsection (1), present it to Parliament at its next sitting.
(1) The funds of the Board shall consist of—
(a) such sums as may be appropriated by Parliament;
(b) subject to the provisions of this Act, the proceeds from the sale of tickets in any National Lottery;
(c) other money lawfully paid to the Board excluding any prize money paid by the licensee to the Board; and
(d) the payments to the Board in terms of section 35.
(2) Subject to the provisions of sections 72 and 73 of the Public Finance Management Act, the Board may with the approval of the Minister, borrow either temporarily, by way of overdraft or otherwise, such sum as it may require, for meeting its obligations or discharging its functions under this Act.
There shall be paid out of payments made to the Board in terms of section 35 such sums as are necessary to defray any expenses incurred by the Board, including the remuneration, allowances and other employment benefits of the Executive Director and members of staff of the Board.
(1) The Board and the licensee shall keep proper books of accounts and records of all their transactions in respect of the National Lottery.
(2) The Minister shall appoint independent auditors at the end of each financial year to examine and audit the accounts and all relevant documents of the Board.
The financial year of the Board shall be the period commencing on the date of commencement of this Act and ending on the following 30th June and thereafter it shall be a period of twelve months ending on 30th June every year.
LICENSING OF THE NATIONAL LOTTERY
(1) The Board shall issue one licence at any one time authorizing a person to conduct the National Lottery which for purposes of section 46 will constitute a lottery, in accordance with the provisions of this Act.
(2) Before a licence is granted under this section—
(a) the Board shall, by notice in the Gazette and in not less than two newspapers, invite interested parties to apply in writing for a copy of a request for proposal or any other document which may be made public and the Board shall require payments for such documents;
(b) the Board shall, before granting a licence, be satisfied that—
(i) the applicant for the licence contemplated in subsection (1) has sufficient and appropriate knowledge or experience to conduct the National Lottery, or has unconstrained and continuous access thereto, and shall be able to conduct the National Lottery strictly in accordance with this Act, the licence of the National Lottery and any agreement pertaining to the licence;
(ii) the applicant has the necessary financial and other resources to conduct the National Lottery; and
(iii) no political party in the country or political office bearer has any direct financial interest in the applicant or is a shareholder of the applicant.
(3) In considering whether to grant the licence, the Board shall take into account—
(a) whether any person who appears before the Board is likely to manage the business or any part of the business of the National Lottery under the licence, is a fit and proper person to do so;
(b) whether any person for whose benefit that business is likely to be conducted is a fit and proper person to benefit from it; and
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