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Whereby The Regime's Own Financial Monopoly Of Games Of Chance Is Fixed

Original Language Title: Por la cual se fija el régimen propio del monopolio rentístico de juegos de suerte y azar

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LAW 643 OF 2001

(January 16)

Official Journal No 44,294 of 17 January 2001

COLOMBIA CONGRESS

For which the own regime of the profitable monopoly of games of luck and chance is fixed.

Vigency Notes Summary

DECRETA:

CHAPTER I.

GENERAL ASPECTS

ARTICLE 1o. DEFINITION. The monopoly of this law is defined as the exclusive power of the State to exploit, organize, manage, operate, control, control, regulate and monitor all modes of games of luck and chance, and for establishing the conditions under which private individuals may operate them, which should always be exercised as an activity which must respect the public and social interest and for the purposes of a financial arbitration in favour of health services, including their borrowing costs and research.

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ARTICLE 2o. OWNERSHIP. The departments, the Capital District and the municipalities are the owners of the income of the profitable monopoly of all the games of luck and chance, except the resources destined to the research in areas of the health that belong to the nation.

The rental monopoly of games of luck and chance will be exercised in accordance with the provisions of this law. The exploitation, organization and administration of all manner of game of luck and chance will be subject to this law and its regulations, issued by the National Government, which is obligatory application throughout the territory of the country, any is the order or level of government to which the dependency or administrative entity under which the operator develops the activity belongs. Surveillance will be carried out through the National Health Superintendence.

PARAGRAFO. The special districts will be governed by games of luck and chance, by the rules foreseen for the municipalities and will have the same rights.

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ARTICLE 3o. Principles governing the operation, organization, administration, operation, control and control of games of luck and chance. Game management of luck and chance will be performed according to the following principles:

a) Social finality prevalent. Every game of luck and chance must contribute effectively to the financing of the public health service, of its loan and pension obligations;

b) Transparency. The exercise of the monopoly power shall be directed to ensure that the operation of the games of luck and chance, is exempt from fraud, vices or interventions to alter the probability of approaching, or to subtract it from chance;

c) Economic rationality in the operation. The operation of games of luck and chance shall be carried out by the competent State entities, or by the individuals legally authorized or by means of companies organized as specialized companies, according to criteria of rationality economic and administrative efficiency which guarantee the profitability and productivity necessary for the full implementation of the public and social objective of the monopoly. The departments, the Capital District of Bogota and the municipalities will exploit the monopoly through the dependency or entity established for this purpose;

d) Link of income to health services. All the activity carried out in the exercise of the monopoly must take into account that the health services are financed with it and that is the reason for the monopoly. The concept of Health Services includes the financing of these services, their pension liabilities, loan, and other expenses related to research in areas of health. The resources obtained by the departments, the Capital District of Bogota and the municipalities as a product of the monopoly of games of luck and chance, must be transferred directly to the health services in the form established in this law and be used to directly contract with the social enterprises of the State or public or private entities the provision of the health services to the related population, or for the affiliation of that population to the subsidized regime.

e)

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f)

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ARTICLE 4. PROHIBITED GAMES AND UNAUTHORISED PRACTICES. Only games of luck and chance may be exploited under the conditions laid down in the law of their own regime and in accordance with their rules of procedure. The competent authority shall have the immediate interruption and closure and liquidation of the establishments and undertakings which exploit them outside it, without prejudice to the criminal, police and administrative penalties to be imposed on them. collection of the exploitation rights and taxes that have been caused.

The following practices are prohibited throughout the national territory:

(a) The circulation or sale of games of luck and chance whose offer will dissipate the random character of the game or its risks;

(b) The offering or sale of games of luck and chance to minors and persons suffering from mental illness that have been declared judicially;

c) The circulation or sale of games of luck and chance whose prizes consist or involve directly or indirectly goods or services that violate the fundamental rights of the persons or attack the good customs;

d) The circulation or sale of games of luck and chance that affect the health of the players;

e) The circulation or sale of games of luck and chance whose prize consists of or involves goods or services that the authorities must provide in the development of their legal functions;

f) The circulation, sale, or operation of games of luck and chance when engaging or engaging illicit or prohibited activities, goods or services, and

g) The circulation, sale or operation of games of luck and chance that do not have the authorization of the competent authority or authority, do not know the rules of the respective game or the authorized limits.

The police authorities or the competent control body shall definitely suspend unauthorised games and prohibited practices. They must also be transferred to the competent authorities where the State's assets, loss of public resources or crimes may be brought to the detriment of the State.

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ARTICLE 5o. DEFINITION OF GAMES OF LUCK AND CHANCE. For the purposes of this law, they are lucky and chance those games in which, according to rules predetermined by the law and the regulation, a person, who acts as a player, makes a bet or pay for the right to participate, to another person acting in an operator's capacity, who offers a prize, in money or in kind, which will win if he is right, given the results of the game, not being this predictable with certainty, for being determined by luck, chance or chance.

They are lucky and chance those games in which you participate without paying directly for doing so, and that offer as a prize a good or service, which you will get if you are right or if you give the required condition to win.

94 of Law 1753 of 2015. The new text is as follows: > It is excluded from the scope of this law the games of luck and chance of a traditional character, family and school, which are not the object of profit or professional exploitation by whom it operates, manages or manages, as well as the competitions of pure pastime or recreation; also excluded are the promotional games performed by the operators of games of luck and chance, the raffles for the financing of the fire body, the promotional games (a) of the departmental and capitalisation companies which may only be made directly by these entities. The sweepstakes, bingos, sports betting, instant lottery and pre-printed lotto may be used as promotional games, their exploitation rights will be paid on the total value of the prize plan and each prize contained in the plan will not be available. exceed one hundred and sixty (160) legal minimum monthly salaries in force.

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In any case the promotional prizes must be delivered in a period not greater than thirty (30) calendar days.

Sports games and those of strength, skill or skill are governed by the rules that are their own and by the relevant police. The bets that are crossed with respect to the same are subject to the provisions of this law and its regulations.

PARAGRAFO. The game contract of luck and chance between the bettor and the operator of the game is of adhesion, of random nature, duly regulated, whose object involves the expectation of gain or loss, depending on the occurrence or not of an uncertain fact.

For permanent bets the game documents must be submitted to the operator for recovery within two (2) months of the date of the draw; if they are not cancelled, they give rise to legal action through the verbal process of smaller and larger amounts, as set out in Chapter 1 of Title XXIII of the Code of Civil Procedure. The game document has a court expiration of six (6) months.

Editor Notes

PARAGRAFO 2o.

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CHAPTER II.

MODES OF OPERATION OF THE GAMES OF LUCK AND CHANCE, FIXATION AND DESTINATION OF THE RIGHTS OF EXPLOITATION

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ARTICLE 6o. OPERATION ADDRESS. The direct operation is that carried out by the departments and the Capital District, through the industrial and commercial enterprises, mixed and public capital companies established in this law for that purpose. In this case, the income of the monopoly is constituted by:

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a) A percentage of the gross revenue for each game, which must be entered into a special account defined for that purpose, while the transfer to the corresponding health sector is given in the terms defined by this law;

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(b) Surpluses obtained in the course of the operation of different games, which may not be lower than those established as a minimum efficiency criterion in the framework of this law. If the minimum financial results are not achieved, the seventh indent of Article 336 of the Political Charter must be applied;

c) For lotteries the income will be of twelve percent (12%) of the gross of each game, without prejudice to the surpluses contemplated in the previous literal.

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ARTICLE 7o. THIRD-PARTY OPERATION. The third-party operation is that which is performed by legal persons, under the authorization, by means of concession or contract contracts in terms of the href="ley_0080_1993.html#1"> 80 of 1993, concluded with the territorial entities, the industrial and commercial enterprises of the State, the territorial entities or the publicly owned companies authorized for the exploitation of the monopoly, or any person able under authorization granted in the terms of this law, as the case may be.

The income of the monopoly is constituted by the operating rights that the operator must pay for the operation of each game.

The term established in the concession contracts for the operation of games of luck and chance shall not be less than three (3) years nor exceed five (5) years.

The concession of games of luck and chance will be contracted according to the general rules of public procurement, regardless of the legal nature of the contracting authority.

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ARTICLE 8o. RIGHTS OF EXPLOITATION. In cases where the games of luck and chance are operated through third parties, by contract of concession or by authorization, the dependency or authorized entity for the administration of the respective game of the A profit-making monopoly for games of luck and chance, shall be entitled to a percentage of the gross proceeds of each game, except for the exceptions laid down in this Law.

Operating rights anticipated or caused by third-party transactions must be entered into a special account for that purpose and be directly rotated to the health services or to the entity that does its times, to the Fund of the Passive Corresponding Health Sector Pensional, within the first ten (10) business days of the month following your collection.

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ARTICLE 9o. RECOGNITION AND FIXING OF ADMINISTRATIVE COSTS. In the case of direct operating mode, the maximum allowable costs for administration and operation shall be those laid down in the Regulation; these shall be recognised as entities managing the rental monopoly of games of luck and chance for each mode of play that is directly exploited. For this purpose, the efficiency criteria set out in this Law shall be observed.

Without prejudice to exploitation rights, when the game is operated through third parties, they will recognize the monopoly management entity as administrative expenses a percentage not exceeding one percent (1%) of the operating rights.

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PARAGRAFO.

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ARTICLE 10. SPECIAL INABILITIES TO HIRE OR OBTAIN AUTHORIZATIONS. Without prejudice to the inabilities and incompatibilities provided for in the General Staff Regulations of Public Administration, they are disabled to conclude contracts of granting of games of luck and chance or obtaining authorisations to exploit or operate them:

1. Natural and legal persons who have been punished for tax evasion, by administrative act or judicial judgment, executed according to the case. This inability will be for five (5) years, counted from the three months (3) following the execution of the administrative act or court judgment, but will cease immediately when the person pays the due sums.

2. Natural and legal persons who are liable for payment of obligations relating to transfers, operating rights or fines, originating in contracts or authorizations or permits for the exploitation or operation of games of luck and chance at any level of the State. This inability will be for five (5) years, counted from the execution of the administrative act, but it will cease immediately that the person pays the due sums.

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CHAPTER III.

LOTTERIES REGIME

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ARTICLE 11. TRADITIONAL LOTTERY. It is a type of game of luck and chance carried out periodically by an authorized legal entity, which issues and puts into circulation undivided or fractionated banknotes of fixed prices singularized with a combination numerical and other characters in sight forcing to award a prize in money, previously fixed in the corresponding plan to the holder of the ticket or fraction whose combination or preestablished approximations coincide in his order with that obtained at random from public draw by the managing body.

PARAGRAFO. <Paragraph added by article 13 of Act 1393 of 2010. The new text is as follows: > The marketing of traditional lottery can be carried out by electronic channels, without therefore becoming novel games, in accordance with the regulations that for this purpose the Council will issue National of Luck and Azar Games.

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ARTICLE 12. EXPLOITATION OF LOTTERIES. It is up to the departments and the Capital District to exploit the traditional lotteries as a rent. For this purpose the regulation will distinguish between ordinary sweepstakes and extraordinary draws based on the number of draws and the plan of prizes to be distributed, always seeking the efficiency of the same and the guarantees to the bettor.

Each department, or the Capital District, will not be able to exploit more than one traditional ticket lottery, directly, through third parties, or in associated form.

The operating rights for the operation of each game cannot be used to cover operating expenses and must be rotated to the corresponding Health Fund within the first ten (10) working days of the month next to the realization of the game.

PARAGRAFO 1o. The Colombian Red Cross will be able to continue exploiting its traditional lottery. The operation, operation and other aspects of the operation shall be governed by the provisions laid down in this Law, and in the international legal and treaty rules relating to the organization and functioning of the National Society of the Colombian Red Cross.

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PARAGRAFO 2o. The municipalities that the issuing of this law, are exploiting a lottery with ordinary and/or extraordinary draws will be able to maintain their exploitation in the same terms in which they were authorized. The other aspects shall be governed by the provisions laid down in this Law, except for the operation to be regulated by the National Government.

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ARTICLE 13. SCHEDULE OF ORDINARY LOTTERY DRAWS. The circulation of traditional lotteries is free throughout the national territory, but the ordinary sweepstakes will be carried out according to the annual schedule indicated by the National Government.

PARAGRAFO. The schedule of ordinary draws will begin to apply six (6) months after the current law is in force. As long as the timetable referred to in this article is issued, the lotteries existing at the time of publication of this law will continue to make their drawings with the same periodicity as they do.

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ARTICLE 14. ADMINISTRATION OF THE LOTS. Traditional lotteries or banknotes will be administered by industrial and commercial enterprises of the State of the Departmental Order or Capital District or by Departmental Public Capital Societies (SCPD) created by the association of various departments and/or the Capital District. Participation in these companies will be authorized by the Departmental Assembly or the District Council, on the initiative of the governor or mayor, as the case may be. These companies and companies shall have legal status, administrative autonomy and independent assets, the social object of which shall be the administration and/or operation of the traditional lottery or banknotes and other games of their competence. referred to in this law.

Prior ordinance of the respective assembly that so provides, or of the respective agreement in the case of the Capital District, the departments or the Capital District will be able to withdraw freely and request the payment of their contributions in the societies of departmental public capital to directly exploit the monopoly or be part of another company.

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ARTICLE 15. ASSOCIATED EXPLOITATION. Each Departmental Public Capital Society (SCPD) shall have the right to exploit directly or indirectly, a single conventional or traditional lottery game.

PARAGRAFO 1o. The departments and Capital District will be able to exploit a traditional lottery directly or in an associated manner. No department may have a stake in the exploitation of the lottery in more than one Departmental Public Capital Society (SCPD).

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ARTICLE 16. MODES OF OPERATION OF THE LOTTERIES. The lotteries may be exploited by means of the operating procedures laid down in this law. Consequently, the territorial entity may operate the traditional lottery directly, or through association or through third parties.

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ARTICLE 17. RELATIONSHIP BETWEEN ISSUE AND SALES OF LOTTERIES. The regulation issued by the National Government will determine the relationship that the issuance of tickets must keep in relation to the tickets sold. Compliance with this relationship will be one of the efficiency criteria to be considered for the application of article 336 of the Political Charter.

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ARTICLE 18. LOTTERY AWARDS PLAN. The prize plan of the traditional lotteries or bills, will be approved by the management body of the respective industrial and commercial enterprise of the State, departmental or district, administrator of the lottery, or by the Council or Board of Directors of the respective Society of Public Capital of Departmental (SCPD) that have constituted for the exploitation of the same, taking into account the criteria indicated by the National Government, through the regulation.

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ARTICLE 19. EXTRAORDINARY LOTTERY DRAWS. The departments, the Capital District, the National Red Cross Society and the municipalities authorized by this law, are empowered to hold an extraordinary traditional lottery lottery annually or of banknotes. For this purpose, they may be associated with each other, through their Industrial and Commercial Companies managing lotteries or the Society of Public Capital of Departmental that have been constituted for the exploitation of the same. The National Government will set the corresponding timeline.

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ARTICLE 20. From 1o. January of the year 2001, the lottery game will be carried out by means of water-umatic system or other system that corresponds to the technical advances that guarantee safety and transparency to the draws. Draws are declared in the national public interest and will be broadcast live and live on national and/or regional public channels.

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CHAPTER IV.

PERMANENT OR CHANCE BETTING GAME REGIME

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ARTICLE 21. PERMANENT BETS OR CHANCE. It is a game mode of luck and chance in which the player, in official form, in manual or systematized form, indicates the value of his bet and chooses a number of no more than four (4) figures, so that if their number matches, according to the default rules, with the result of the jackpot prize or game authorized for the effect, wins a prize in money, according to a pre-defined prize plan and authorized by the National Government by regulatory decree.

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ARTICLE 22. EXPLOITATION OF THE GAME OF PERMANENT BETS OR CHANCE. It is up to the departments and the Capital District to exploit the game of permanent bets or chance as a rentable. The exploitation will be able to be carried out by directly through the Industrial and Commercial Companies of the State operating of lotteries, or through the Societies of the Departmental Public Capital (SCPD). authorizes and orders to create in this law.

You can only operate the permanent betting or chance game, through third parties selected by public tender, and for a period of five (5) years.

Private operators of this gaming mode must have a minimum technical heritage, grant the guarantees and meet the other requirements that the issued by the National Governmentregulation.

PARAGRAFO. For the purposes of this law, revenues from permanent betting games in Bogota and Cundinamarca will continue to be distributed by seventy percent (70%) for the Bogota Health Financial Fund and the Thirty percent (30%) for the Cundinamarca Departmental Health Fund, discounted the administrative costs of the operation.

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ARTICLE 23. OPERATING RIGHTS. The dealers in the permanent betting game or chance shall pay the entity in a monthly payment for the right of exploitation, 12% (12%) of their gross income.

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At the time of the presentation of the declaration of the rights of exploitation, a value equivalent to seventy-five per cent (75%) of the operating rights shall be paid for the following period: which are declared.

In the case of new dealers the first advance payment will be made based on the expected gross receipts, according to the market study prepared for the effect and presented in the framework of the tender prior to the conclusion of the concession contract.

If it is a dealer that has already been operating the game, the advance payment that will be made from the current law will be based on the simple average of the gross income of the concessionaire of the twelve (12) months. above; in any event, the advance may not be less than the average of the amount paid as royalty in the last twelve (12) months.

PARAGRAFO. The difference between the total value of the rights settled in the period and the advance paid in the preceding period shall constitute the remainder or balance of the operating rights to be paid for the period respective.

In the event that the total value of the rights of exploitation of the period is less than the advance paid by the same, the recognition of compensation against future exploitation rights will proceed.

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ARTICLE 24. AWARDS PLAN AND MINIMUM PROFITABILITY. <Article as amended by Article 23 of Act 1393 of 2010. The new text is as follows: > The National Government will fix the structure of the permanent betting game awards plan that will govern across the country.

The minimum profitability of the permanent betting game or chance, for each territorial jurisdiction, shall be established as a criterion of efficiency and contractual obligation in the respective concession contracts, and corresponds to the minimum income gross that, by the sale of the game of permanent bets or chance, must generate the operators for each year and for the entire duration of the respective contract, so that the sales are sustained and its growth is sought as a rentable for health.

The minimum return will be equal to the highest number between the average annual gross income earned from the sale of the permanent betting game or chance during the four (4) years prior to the opening of the bidding process and the In the year immediately preceding the opening of the tender process, the gross income for the year immediately preceding the opening of the tender process, plus a percentage of year-on-year growth which will be equal to the consumer price index. In order to determine the average or the sum referred to in this paragraph, the data shall be used for the online and real time connectivity or, until such data are available, to those with the different territorial entities and the National Superintendence of Health.

It is up to the concessionaire to pay 12% (12%) on gross income for health-related exploitation rights, plus the additional value that will come into being between that percentage of operating rights and the twelve (12%) on the minimum value of gross receipts which, by sales to the game, were previously indicated in the contract as a minimum return; this additional value will be paid by the concession holders for contractual compensation with a destination to health, without there being any claim or compensation in your favour.

It will be a causal termination of the concession contracts for non-compliance with minimum profitability, without the right to compensation or compensation.

PARAGRAFO 1o. The conditions set out in this law are permanently governed for all permanent wagering or chance contracts.

TRANSIENT TRANSIENT. In order to determine the minimum profitability in the bidding processes that are opened within two (2) years after the current law, the updated average of the gross proceeds obtained by the sale of the game during the two (2) years prior to the opening of the tender process plus 1.25 percentage points.

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ARTICLE 25. PERMANENT OR CHANCE BETS. The permanent betting or chance game will operate throughout the national territory on a single form preprinted on security paper, with consecutive numbering and security code issued by the companies managing the profitable monopoly, according to the format established by the National Government. Operators will only be able to purchase forms from those companies.

You can only operate the permanent betting game, through third parties, selected by public tender and for a period of five (5) years.

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ARTICLE 26. BETTING REGISTER. Employers of permanent bets, must keep a manual or magnetic journal record, duly followed for the accounting entry of the bets, whose values will be in accordance with those recorded in the system forms or records. The journal must be kept up to date and available on a permanent basis in the case of a request by the audit, control and surveillance entities.

CHAPTER V.

DEPARTMENTAL, MUNICIPAL AND CAPITAL DISTRICT RIFFLES REGIME

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ARTICLE 27. RIFAS. It is a mode of gambling of luck and chance in which they are drawn, at a predetermined date prizes in kind between those who have acquired or are holders of one or several ballots, issued in continuous series and put on sale in the market at fixed price by a prior and duly authorised operator.

Permanent character raffles are prohibited.

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ARTICLE 28. EXPLOITATION OF THE RAFFLES. It corresponds to the municipalities, departments, the Capital District of Bogota, and the Territorial Health Enterprise (ETESA)<2 >, the exploitation, as a rentistic the raffles.

When the raffles are operated in a municipality or the Capital District, it corresponds to these their exploitation.

When the raffles are operated in two or more municipalities of the same department or a municipality and the Capital District, their exploitation corresponds to the department, through the Society of Departmental Public Capital (SCPD).

When the raffle is operated in two or more departments, or in one department and the Capital District, the holding corresponds to ETESA<2 >.

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ARTICLE 29. METHOD OF OPERATION OF THE RAFFLES. Only the rentier monopoly on raffles can be operated by means of the operation mode through the intermediary of third parties by means of authorization.

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ARTICLE 30. OPERATING RIGHTS. The raffles generate exploitation rights equivalent to fourteen percent (14%) of gross income. At the time of the authorization, the person managing the raffle shall credit the payment of the operating rights corresponding to one hundred percent (100%) of all the ballots issued. The raffle will be adjusted for the payment of the operating rights to the total of the ticket sold.

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CHAPTER VI.

OF THE EXPLOITATION, ORGANIZATION, AND ADMINISTRATION OF THE OTHER GAMES

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ARTICLE 31. PROMOTIONAL GAMES. It is the modalities of games of luck and chance organized and operated for purposes of advertising or promotion of goods or services, establishments, companies or entities, in which a prize is offered to the public, without access the game is paid directly.

The promotional games generate in favor of the monopoly management entity rights of exploitation equivalent to fourteen percent (14%) of the total value of the prize plan.

The rights mentioned must be cancelled by the natural or legal person who manages the game at the time of authorization.

All prizes for a promotion must be held by the public.

The Territorial Health Enterprise (ETESA)<2 > originating in the departments and Capital District association, will exploit the national promotional games and authorize their realization. Departmental and municipal level promotional games will be exploited and authorized by the Departmental Public Capital Society (SCPD).

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ARTICLE 32. LOCALIZED GAMES. These are modes of games of luck and chance that operate with equipment or game elements, in commerce establishments, to which the players attend as a necessary condition to be able to bet, such as the bingos, videobingos, spherodromes, slot machines, and those operated in casinos and the like. Local games are those establishments where the operation of different types of games are combined from those considered by this law as localized or those establishments where the operation of localized games is combined with other business or service activities.

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The exploitation of the localized games corresponds to the Territorial Health Enterprise, ETESA<2 >. The rights will be of the municipalities and the Capital District and will be distributed monthly during the first ten (10) days of each month.

The resources coming from games located in cities of less than one hundred thousand (100,000) inhabitants will be allocated to the municipality generating the same and those generated in the rest of the cities will be distributed fifty percent (50%) according to with the jurisdiction where the rights or royalties were generated and the other fifty percent (50%) according to the criteria of distribution of the participation of the current income of the Nation.

The localized games that from the sanction of this law will seek authorization from the Territorial Health Company, ETESA<2 >, must have a favorable previous concept of the mayor where the game will operate.

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ARTICLE 33. MODALITIES OF OPERATION OF THE LOCALIZED GAMES. The rental monopoly of the localized games will be operated through third parties, prior authorization and subscription of the concession contracts.

25 of Decree 4142 of 2011 >

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ARTICLE 34. OPERATING RIGHTS. The dealers or operators authorized for the operation of localized games shall pay the following monthly fees for the following monthly rates:

Description of the Tarifa game

1. Slot machines% of a statutory monthly minimum wage

Slot machines 0-$500 30%

Slots $500 on 40%

Interconnected Progressive 45%

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2. Casino games Minimum monthly salary in force

Casino Table (Black Jack, Poker, Bacara, Craps, Point & Banking, Roulette) 4

3. Other different games (spherodromes, etc.) 4

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4. Bingo Halls Minimum legal daily wage in force

4.1 For municipalities less than 100,000 inhabitants cartons up to 250 pesos per chair 1.0

4.2 For municipalities less than 100,000 inhabitants more than 250 pesos per chair rate 1.5

No bingo will pay fare less than the one set for one hundred (100) chairs in the municipalities under one hundred thousand (100,000) inhabitants.

4.3 For municipalities larger than 100,000 inhabitants cartons up to 250 pesos per chair 1.0

Cartons of more than 250 up to 500 weights per chair 1.5

Cardboard over 500 pesos per chair 3.0

Interconnected simultaneous chairs A statutory minimum daily wage is added in each item above.

No bingo will pay fare less than that set for two hundred (200) chairs.

5. Other Games Located 17% of gross receipts

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ARTICLE 35. LOCATION OF LOCALIZED GAMES. The operation of the game modalities defined in this law as localized, will be allowed in commerce establishments located in areas suitable for the development of commercial activities.

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ARTICLE 36. BETTING ON SPORTING EVENTS, GALLISTICS, CANINES AND THE LIKE. These are methods of games of luck and chance in which the players ' bets are linked to the results of sporting events, gallistics, canines and the like, such as as the marker, winner, or preset combinations or approximations. The player who is successful with the result of the event is awarded a percentage of the overall amount of the bets or other pre-established prize.

25 of Decree 4142 of 2011 >

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ARTICLE 37. EQUESTRIAN EVENTS. <Article as amended by article 15 of Law 1393 of 2010. The new text is as follows: > It is for each of the departments and Districts, the exploitation, as a rentable, of the events and the horse-race bets.

The operation of the same will be carried out by concession with a period of ten (10) years, through third parties selected by public tender. The operators of this game mode must have a minimum technical heritage, provide guarantees and meet the other requirements that the regulation of the game points out to them.

The exploitation rights derived from horse-riding bets are the property of the departments and districts in which the operation is carried out. The horse-race bets, the concession of which is awarded in a department or district, may be operated in other territorial entities prior to the fulfilment of the conditions and authorizations established by the regulation, and will pay seventy percent. (70%) of the operating rights to the District or department in which the bet is placed.

Horse-racing bets on races held in Colombia will pay as operating rights one percent (1%) of gross revenue per concept of betting sales.

Horse-race bets on races held outside the national territory will pay as operating rights the fifteen percent (15%) of gross proceeds by the sale of bets.

In the event that the horse race betting operator in Colombia, exploit horse racing bets on races held outside the national territory, will pay as operating rights five percent (5%) of the income gross by concept of sale of those bets.

The exploitation rights generated by the horse-race bets will be distributed in each of the departments or districts as follows: 50% (50%) for the financing of services provided to the population This is not covered by subsidies to the demand and the related population that is used through the public hospital network, which must be subject to the conditions established by the National Government for the payment of these benefits in health, and fifty percent (50%) remaining for funding of technological renovation of the public network in the respective territorial entity.

The game regulation will set the percentage of the horse bets to be distributed to the public.

PARAGRAFO. When the operator to whom the award of horse racing bets has been awarded to Colombia builds its racecourse, it may be extended its concession contract for the operation of the Horse bets for a period equal to that set out in paragraph 2 of this Article.

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ARTICLE 38. NOVEL GAMES. 93 of Act 1753 of 2015. The new text is as follows: > They are any other mode of games of luck and chance other than the traditional lotteries or tickets, the permanent bets and the other games referred to in this law. New games are considered, among others, the pre-printed lotto, the instant lottery, the online lotto in any of its modalities, sports betting or in events and all games operated by internet, or by any other modality of information technologies that do not require the presence of the bettor. The above only in relation to the games you manage and/or exploit Colgames.

The operating rights to be transferred by those who operate new games shall be at least 17% of gross revenue. When new games are operated in which the return to the player according to the regulation of the game is equal to or greater than 83% the operating rights will have a minimum rate of 15% on the gross receipts minus the prizes paid. Without prejudice to the above, those who operate online games will additionally pay eight hundred and eleven (811) statutory minimum monthly salaries, which will be cancelled during the first twenty (20) working days of each year of operation.

It is understood that the game operates on the Internet when the bet and the payment of prizes are made only by this means, prior registration of the player on the site or portal authorized and whose mechanics are supported in a generator of random number virtual or in the occurrence of actual events whose results are not controlled. Internet-operated games that include the realization of physical draws, such as the chance and lotteries, among others, in which case the Internet will be a means of marketing, are not understood. Colgames will regulate the games of its competition that operate and market on the Internet.

PARAGRAFO 1o. The legal persons who subscribe to the corresponding concession contract will be able to operate the games of luck and chance on the internet after verification of compliance with the requirements of the Regulation of the game and the others defined by Colgames; the operation of the other new games must be authorized in compliance with the selection processes established in the General Staff Regulations of the Public Administration.

PARAGRAFO 2o. New games other than those operated by the Internet may use this medium only as a sales channel, subject to the authorization of the monopoly administrator who will determine the conditions and requirements to be met for that purpose.

PARAGRAFO 3o. The monopoly managers, inspection, surveillance and control authorities, the police authorities and the National Police will be able to monitor the channels, financial institutions, pages of Internet and means that in any way serve the exploitation, operation, sale, payment, advertising or marketing of unauthorized games of luck and chance, and order the corresponding alerts and blockades.

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ARTICLE 39. INDUSTRIAL AND COMMERCIAL ENTERPRISE OF THE STATE. 175 of 2010, the Territorial Enterprise for Health is deleted, Etesa created by this article >

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ARTICLE 40. DISTRIBUTION OF RESOURCES. The distribution of the income obtained by the Territorial Health Enterprise, Etesa, by way of the exploitation of the new games referred to in article 39 38 > of this law shall be made semi-annually to the courts of 30 June and 31 December of each year, as follows:

Eighty percent (80 percent) for municipalities and the Capital District of Bogota. Twenty percent (20%) for departments

Fifty percent (50%) of each allocation will be distributed according to the jurisdiction where the rights or royalties were generated and the other fifty percent (50%) according to the criteria for the distribution of income participation In the case of the departments, the city and the tax district are current.

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CHAPTER VII.

EXPLOITATION RIGHTS STATEMENT

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ARTICLE 41. SETTLEMENT, DECLARATION AND PAYMENT OF THE RIGHTS OF EXPLOITATION. Without prejudice to the advance, the dealers and the authorized to operate games of luck and chance shall have the obligation to liquidate, declare and pay the rights of exploitation monthly to the competent authority for the administration of the respective monopoly game or the departmental, district or municipal authorities, as the case may be.

The declaration and payment must be made within the first ten (10) working days of the month following its collection, and shall contain the settlement of the rights of exploitation caused in the month immediately preceding it.

The declaration will be presented on the forms that the regulation, issued by the National Government, will determine for the effect.

16 of Law 1430 of 2010. The new text is as follows: > The declarations of exploitation rights and administrative expenses of the games of luck and chance presented without total payment, will not produce any legal effect, without the need of administrative act declare.

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CHAPTER VIII.

OF TRANSFERS TO THE HEALTH SECTOR

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ARTICLE 42. DESTINATION OF REVENUES FROM THE MONOPOLY TO THE HEALTH SECTOR. The resources obtained by the departments, the Capital District and municipalities, as a product of the monopoly of games of luck and chance will be used to hire with the companies State or public or private entities the provision of health services to the related population or for the linkage to the subsidized regime.

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PARAGRAFO 1o. The resources obtained, by the exploitation of the lotto, pre-printed lottery and instant lottery monopoly, will be distributed as follows:

a) Eighty percent (80%) to meet supply and demand in the provision of health services, in each territorial entity;

b) Seven percent (7%) to the Health Research Fund;

c) Five per cent (5 per cent) for linkage to the contributory subsidised regime for senior citizens;

d) Four per cent (4 per cent) for linkage to the disabled, limited visual and mental health regime;

(e) 4% (4%) for the link to the subsidized health regime for the population under 18 years of age not beneficiaries of the contributory schemes.

The resources to be allocated to the Health Research Fund will be allocated to the projects through the Ministry of Health and Colciencias for each department and the Capital District.

PARAGRAFO 2o. The above resources will be used for the supply and demand in the health service delivery. In proportion to the supply and demand of the health services, according to regulations issued by the National Government, by means of a decree originating in the Ministry of Health.

PARAGRAFO 3o. The resources of the instant lottery, the pre-printed lottery and the online lotto, will be allocated first, to the payment of the passive territorial pension of the health sector, which has been assumed according to Law 60 of 1993, in shared form. Once the resources for the payment of pensions are guaranteed, the territorial health sector will be used for the financing of the health services in the terms established in the previous paragraph.

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PARAGRAFO 4o. 42 of Act 715 of 2001. The new text is as follows: > 80% referred to in the literal (a) of article 42 of Law 643 of 2001, the departments of Amazonas, Arauca, Caqueta, Casanare, Guainia, Guaviare, Putumayo, Vaupes and Vichada, may allocate up to 40% (40%) to cover the costs of running the secretariats or health departments, while maintaining the double characteristic of being administrative and health service providers in your jurisdiction.

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