1.   Short title

   2.   Interpretation


   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

   9.   Remuneration

   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

   18.   Finances

   19.   Accounts and audit

   20.   Financial year


   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


   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


   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


   45.   Offences by bodies corporate

   46.   Unauthorized lotteries

   47.   General offences

   48.   Offences relating to National Lottery

   49.   Penalties


   50.   Regulations in respect of National Lottery and other lotteries

   51.   Savings

   52.   Lottery debt enforcement

   53.   Confidentiality

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



1.   Short title

   This Act may be cited as the Lotteries Act.

2.   Interpretation

   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.


3.   Establishment of the 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.

4.   Composition of the Board

   (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.

5.   Qualifications of members

   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.

6.   Chairperson of the Board

   The Minister shall designate one of the members appointed under section 4, other than an ex officio member, as Chairperson.

7.   Tenure and vacation of office of members

   (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.

8.   Meetings of the Board

   (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.

9.   Remuneration

   The members of the Board shall be paid such remuneration and allowances as the Minister may determine.

10.   Functions of the Board

   The Board shall have the following functions—

   (a)   issue one licence to conduct the National Lottery as contemplated in subsection (1) of section 21 and any matter contemplated in paragraph (g) of subsection (3) of section 22;

   (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.

11.   Powers of the Board

   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.

12.   Secretariat of the Board

   The Secretariat of the Board shall consist of a chief executive officer and other employees of the Board appointed under this Act.

13.   The Executive Director

   (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.

14.   Other employees

   (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.

15.   Procedures for the Board

   (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.

16.   Annual Report

   (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.


17.   Funds of the Board

   (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.

18.   Finances

   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.

19.   Accounts and audit

   (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.

20.   Financial year

   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.


21.   Licence to conduct 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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