Article 1
The purpose of this Act is to invigorate sports, raise funds to
develop, train and nurture sports talents, and to facilitate a
balanced issuance, management and utilization of profits from
sports lottery.

Article 2
The competent authority referred to in this Act is the central
competent authority for sports.

Article 3
Terminologies used in this Act are defined as follows:
1. Sports lottery: Refers to any lottery that predicts the
outcome of competitive sports, in the form of a game.
2. Issuer: Refers to an organization that is commissioned by the
competent authority to be responsible for the issuance, sales,
marketing, games process and results announcement, awards,
management of sports lottery and other related affairs.
3. Commissioned organization: Refers to an organization that is
commissioned by the issuer and approved by the competent
authority to handle the issuance, sales, marketing, games
process and results announcement, awards and management of
sports lottery.
4. Operator: Refers to an entity that has the distribution
license to market sports lottery, through an agreement with the
issuer or commissioned organization.
5. Prize winner: Refers to a person who has the right to claim
prize money in accordance with the wagering rules of the issuer.
6. Profit: Refers to the remainder of the total revenue from the
sale of sports lottery less payable prize money and sports
lottery issuer marketing and management fees.

Article 4
The issuance of sports lottery should be handled by professional
issuance organization, established by the competent authority or
selected through a public selection process.
The organizational structure and operational rules of the
aforementioned organization, or the selection criteria, are
determined by the competent authority.

Article 5
Measures governing the issuance, sales, marketing, games process
and results announcement, awards and management of sports
lottery are determined by the competent authority.

Article 6
The total prize money from the sale of sports lottery is not
allowed to exceed 78% of the total sports lottery revenue.
However, operational maintenance plans or accompanying measures
proposed by the issuer, after approval by the competent
authority, are not restricted by such stipulations.

Article 7
Marketing and management fees of sports lottery are not allowed
to exceed 12% of the total sports lottery revenue. In accordance
with article 11 of this Act, when the sale of sports lottery
from the telephone, the internet or other telecommunication
equipment exceed 50%, the said marketing and management fees are
not allowed to exceed 10% of the total revenue.
The aforementioned marketing and management fees include
commission for the sale of sports lottery, compensation for
operator, loss resulting from the sale of sports lottery,
liability payout and costs of events pertaining to the issuance
of sports lottery.

Article 8
10% of the profits from the issuance of sports lottery will be
injected into the profits of Taiwan Lottery and regulated in
accordance with the Public Welfare Lottery Issue Act; the
remaining 90% will be handled by the competent authority for the
development of sports, and is not allowed to be compensated as
government budget for sports. The scope of its use will be
announced by the competent authority and publicized on the
government gazette.
The aforementioned profits appropriated for the development of
sports should be handled in the form of a fund or ledger
(credits/debits).
The said affairs could be handled through the establishment of a
sports development fund in accordance with the annual budget
procedure. Prior to the establishment of the fund, the profits
from sports lottery should be deposited in a public account, and
budgeted in the form of credits/debits. After the establishment
of the fund, all balance from the public account should be
transferred into the fund immediately.

Article 9
The issuer should create an operation report based on situations
arising from the issuance of sports lottery, together with a
profit/loss chart, payout of prize money summary, profit
distribution chart and details of marketing and management fees.
The report should be submitted to the competent authority before
the 15th of next month.

Article 10
The selection of operator by the issuer or commissioned
organization should be limited to licensed operator which
possess professional sports knowledge and passed qualification
examinations, or operator with experiences in Sports Special
Public Welfare Lottery; the standard required with respect to
professional sports knowledge is determined by the competent
authority; implementation guidelines governing the examination
and licensing criteria of issuer will be implemented after
reporting and filing to the competent authority.
For operator with more than four employees, at least one of the
employees should have working disability, is part of the
indigenous population or from the low-income households.
Prior to the implementation of this Act, all primary and
secondary operator selected in accordance with article 8 of the
Public Welfare Lottery Issue Act can continue to market sports
lottery within the period of contract.
The issuer should be responsible for the marketing of sports
lottery and other educational training of operator; all relevant
plans will be formulated by the issuer and implemented after
reporting and filing to the competent authority.

Article 11
The marketing of sports lottery by the issuer and commissioned
organizations can be achieved, in addition to operator, through
the telephone, the internet and other telecommunication
equipment. The issuer should formulate pertinent operation and
management guidelines to be implemented after approval from the
competent authority.
The aforementioned guidelines should include the following items:
1. Affairs pertaining to the protection of consumers.
2. Protection of confidential information of wagers.
3. Response to disputes.
4. Prevention of money laundering.
5. Prevention of wagering addiction.
6. Operation procedures related to the marketing of sports
lottery through the telephone, the internet or other
telecommunication equipment.
The issuer or commissioned organization should adopt reasonable
methods to inform wagers who wager through the telephone, the
internet or other telecommunication equipment, the relevant
risks and mental and physical hazards with regard to wagering
addiction.
There should be identity confirmation system with regard to the
marketing of sports lottery through the telephone, the internet
or other telecommunication equipment by the issuer or
commissioned organization; a secure trading system should be
established by a credible professional organization to ensure
that all sales information will be kept secure and free from
unauthorized tempering.

Article 12
Target games of the sports lottery should formulated in the form
of a plan by the issuer and reported to the competent authority;
only after approval can the games serve as targets for wagering.

Article 13
The issuer, commissioned organization and operator cannot sell
or pay out prize money of sports lottery to minors.
Employees of sports lottery issuer or commissioned organization
cannot purchase or receive sports lottery.
Hosting personnel of target games and athletes of related teams
cannot purchase sports lottery related to the said games.
All sales revenue and amount equivalent to prize money payouts
for the issuer, commissioned organization or operator which
violate item 1, will be counted as sports lottery profits.

Article 14
The name, address and other personal information of sports
lottery winners should be kept strictly confidential, unless
required by other laws that have higher jurisdiction.
Any violation of the aforementioned item that results in the
loss of rights for prize winners will entitle them to seek
reparation from the issuer.
The aforementioned condition entitles the issuer to seek
reparation from the source of leak.

Article 15
Winners of sports lottery should, with the exception of those
who purchase through the telephone, the internet and other
telecommunication equipment that will receive prize money
payment directly from the issuer, seek payment from the issuer,
commissioned organization or operator with proof of purchase and
carry personal identification or documents within three months
of prize announcement; payment is nullified once the payment
period expires; all unclaimed prize money will be classified as
sports lottery profits.
The issuer, commissioned organization or operator who violates
the aforementioned condition by paying prize money to prize
winners beyond the payment period should allocate an amount
equivalent to the said prize money as sports lottery profits.
Sports lottery prize money below a certain amount as sanctioned
by the competent authority will not be bound by the
aforementioned criterion pertaining to the proof of purchase and
personal identification or documents.
Loss or theft of sports lottery is not eligible for
nullification of payment and bylaw 1 of article 720, article 725
and 727 of the Civil Code are not applicable to such condition.

Article 16
All prize money of sports lottery should be in one single
payment.

Article 17
Winning sports lotteries that are difficult to ascertain due to
fumigation, soaking, oil stains, dying, damage or other
conditions will not be compensated.

Article 18
Any void wagers will entitle the purchaser to seek refunds from
the issuer, commissioned organization or operator; the right to
seek refund will be nullified within two years, commencing from
the day that the issuer announced the invalidity of the wager.
Purchasers of the aforementioned wager through the telephone,
the internet or other telecommunication equipment should be
refunded directly by the issuer.
The void condition as stated in item 1 should be formulated by
the issuer and implemented after approval by the competent
authority.

Article 19
Article 19 and article 19-1 of the Consumer Protection Law are
not applicable to sports lottery purchased through the
telephone, the internet or other telecommunication equipment.

Article 20
The competent authority should send agents or commission
professional organizations to inspect the issuer, commissioned
organization or operator; or command the issuer to send agents
to inspect the sales and financial matters of the commissioned
organization and operator.
The issuer, commissioned organization and operator are not
allowed to avoid, impede or reject the aforementioned
inspections, and should comply by providing all pertinent
information.

Article 21
Perpetrators of fairness of games relating to wagering targets
through means of violence, coercion, swindle or other illegal
ways will be subjected to imprisonment of one to seven years and
a concurrent capital fine of NTD 10 million to NTD 30 million.
A syndicate of more than three persons which violate the
aforementioned condition will be subjected to imprisonment of
three to ten years and a concurrent capital fine of NTD 20
million to NTD 50 million.
Attempted perpetrators will also be penalized.
Legal persons, associations or their corresponding
representatives, managers and accompanying personnel of sports
teams should collaborate with prosecutors’ office and police
agencies to investigate the aforementioned behaviors in items 1
and 2. Any attempts to hide or oppose, after verification, will
be subjected to a capital fine of NTD 2 million to NTD 10
million.

Article 22
The issuer will be subjected to a capital fine of NTD 50,000 to
NTD 250,000 if any of the following situations occurs:
1. Prize money payout ratio exceeds the rate stipulated in
article 6.
2. Marketing and management fees violate the condition
stipulated in article 7.

Article 23
The following conditions render a capital fine of NTD 30,000 to
NTD 150,000, and will be penalized on a case-by-case basis:
1. Violation of item 4 of article 11 by the issuer or
commissioned organization by failing to establish a identity
verification system or secure technological system for trading
certified by professional organizations.
2. Violation of item 1 of article 14 by failing to maintain
strict confidentiality by any person familiar with the personal
information of sports lottery winners through job responsibility
or affairs.
3. Violation of item 1 of article 15 by failing to categorize
expired prize money as sports lottery profits by the issuer,
commissioned organization or operator.

Article 24
The following conditions render a capital fine of NTD 30,000 to
NTD 150,000, and will be penalized on a case-by-case basis,
unless improved within the specified period:
1. Violation of article 5 by the issuer pertaining to the
issuance, marketing, promotion, exchange or management
stipulations.
2. Violation of article 9 by the issuer by failing to produce
the necessary report.
3. Violation of item 2 of article 10 by operator that hire more
than four employees by failing to hire at least one person with
working disability, is part of the indigenous population or from
the low-income households.
4. Violation of items 1, 2 and 3 of article 13 by the issuer,
commissioned organization or its employees, operator, hosting
personnel of wagering games or games related team personnel and
athletes by failing to observe stipulations regarding the
marketing, prize money payout, purchase or receiving of sports
lottery.
5. Violation of item 2 of article 20 by the issuer, commissioned
organization or operator by avoiding, impeding or rejecting
inspections or failing to provide pertinent information.

Article 25
The issuer or commissioned organization that had been penalized
based on the aforementioned penalties will be subjected to the
following punishment, based on the severity of the violations or
at least had been punished three times:
1. Restrictions on the period, marketing volume or number of
operator of the issuer.
2. Terminate the issuance or marketing of sports lottery for the
commissioned organization.

Article 26
If any of the application documents, affidavit or other
guarantee pledges provided by the issuer during the selection
process is found to be invalid, the competent authority can
revoke the issuance of sports lottery of the issuer.
After the issuance of sports lottery, if the issuer undergoes
disposal through guardianship, custodianship, or halting of
business by the central financial competent authority, the
competent authority can terminate the issuance of sports lottery
of the issuer.

Article 27
After the commencement of issuance, if any one of the following
conditions occurs, any issuance will be immediately halted after
approval from the Executive Yuan:
1. Important matters pertaining to the disturbance of social
peace or acceptable practices.
2. Amendments in law.

Article 28
The issuer of sports special public welfare lottery as defined
by item 2 of article 4 of the Public Welfare Lottery Issue Act
of the Ministry of Finance will, after the coming into force of
this Act, continue to function until 31st December 2013.
The appropriation of the aforementioned sports special public
welfare lottery will be in accordance with item 1 of article 8.

Article 29
The coming into force for this Act is determined by the
Executive Yuan.
Amendments to this Act will come into force as of the date of
announcement.