Official Translation

REPUBLIC OF LITHUANIA

GAMING LAW

May 17, 2001. No. IX - 325

(as amended by June 28, 2001) No. IX - 412

Vilnius

CHAPTER ONE

GENERAL PROVISIONS

Article 1. Purpose of the Law.

This Law regulates the conditions and terms and procedure of organisation of gaming in the Republic of Lithuania.

Article 2. Basic Definitions in this Law.

1. Gaming (hereinafter - playing) means playing such games or mutual betting in accordance with the established regulations,  in which the participants, seeking to win money, of their own accord risk losing their wager or bet, and the bet or gain or loss depends on chance, of any event or result of a sports match.

2. Gaming device means a machine or mechanical device, created and produced for gaming purposes, by the use of which money may be won or lost by chance.

3.  Gaming machine (hereinafter-machine) means an electronic device, created and produced for gaming purposes, through the use whereof money may be won or lost by chance.

4. Gaming establishment (casino) means a place, where table games (roulette, card games, dice games) and gaming machine-operated games are organised according to established gaming regulations.

5. Gaming machines hall means a place where gaming machines are operated  according to established gaming regulations.

6. Bingo facility means a place where bingo is played according to established regulations.

7. Player  means a natural person taking part in gaming.

8. Winning fund means the sum of money earmarked for winning players.

9. Person in control of a legal person means a natural or legal person who:

1) has the right to select (appoint) more than a half of the Supervisory Board (Management Board) members and the chief of administration;

2) actually controls the decisions made by the legal person: has the right of ownership to the entire assets or a part thereof of the economic entity or the right use all or a part of the economic entity’s assets.

10. Direct Communication System means  a system whereby stakes are accepted and winnings are paid out via direct coupling network terminals, located in various places in the Republic of Lithuania, connected with the central computer by telecommunications network, ensuring centralised registering of acceptance of stakes and payment of winnings.

11. Bookmaker  means a natural person who serves as a go-between for persons

wagering: establishes the coefficient of the bookmaking relationship, records the wagered sums, collects and pays out the money.

12. Bookmaker’s  means the location where the sums wagered by gaming clients are accepted.

13.  Totalisator station means the place where bets from the totalisator players are  accepted.

14. Gaming machine  means an electronic or mechanical device playing which by chance and (or) through the player’s ability, it is possible to win a chance of additional free play time or material winnings, the value whereof  does not exceed LTL 100.

Article 3.  Types of Games

1. A gaming machine game is played by putting tokens into the gaming machine; the result of the game and amount of the winnings is determined by the gaming machine.

2. Bingo is a game which is played using cards with numbers printed on them and a scoreboard; the amount of winnings depends on the entire sum pooled and the guessed  number combination, selected at random. The general bingo winnings fund comprises at least  50 percent of the total amount of the stakes pooled.

3. Table games:

1)  roulette is a game played by guessing in which place a small ball  dropped  on a spinning wheel  shall stop; the amount of the winnings depends on the total sum staked and the pro rata distribution of the winnings  established in advance.

2) card games or games of dice, when winners or the amount of winnings is determined  on the basis of   symbol of the cards dealt or  number of  dice spots scored.

4. Totalisator is a system of wagering on sports events, when the amount of the winnings depends on the ratio of totalisator player’s paid in (fixed in advance by the totalisator organisers) sum and the totalisator’s winning fund. The general totalisator winnings fund shall comprise at least 50 percent of the amount of total stakes.

5. Wagering is a contract between two or more parties on the outcome of an uncertain event based on chance, when the amount of the winnings shall depend on  the sum paid in by the player and the pro ratia coefficient fixed by the bookmaker in advance.

CHAPTER  TWO

REQUIREMENTS FOR THE ORGANISATION OF GAMING

Article 4. Authority Issuing Licences to Operate Games

1. Licences to organise games shall be issued by the State Gaming Control Commission (hereinafter - Control Commission).

2.  Prior to issuing a licence  for  the organisation of gaming, the Control Commission must obtain the evaluations by the State Security Department, Special Investigation Service and Police Department under the Ministry of the Interior.

Article 5. Types of Licences for the Organisation of Gaming

1. Licences may be issued for the organisation of the following games:

1) gaming in gaming machines halls;

2) bingo;

3) table games: roulette, card games and (or) games of dice;

4) totalisator;

5) bookmaking

2. One company may be issued all types of licences.

Article 6. Validity and Cancellation of License

1. A licence to organise games shall be issued for an unlimited period of time and must be re-registered on an annual basis by paying state levies of an established amount.

2. The license shall be cancelled, if:

1) the licence holder submits a request to cancel the license;

2) a company being re-organised or liquidated finishes operations;

3) the license holder fails to re-register the license at the set time;

4) information submitted for acquiring the license is false;

5) the company, which had been issued an admonition regarding possible cancellation of the license, failed to eliminate the violations of the conditions of licensed operations;

6) based on the other grounds established by legal acts;

3. The license shall be cancelled by the institution which has issued it.

Article 7. Regulations for Licensing of Games

The Government shall approve the regulations of the licensing of games.

Article 8. Entities Organising  Games

Public and private companies (hereinafter-companies), which are governed according to the procedure established by the Company Law and which have obtained a licence for this activity and permits to open gaming machine, bingo facilities, gaming facilities (casino) or, when the Control Commission approves totalisator or bookmaking game regulations.

Article 9. Locations for Establishment of Gaming Facilities (Casinos)

Gaming facilities (casinos) shall be established pending approval by local government council.

Article 10. Prohibitions and Restrictions of Organisation of Gaming

1. It shall be prohibited to organise games, which have not been listed in this Law or in violation of the procedure set forth in this Law.

2. Organisation of gaming hall be prohibited in the following locations:

1) in residential houses, excepting those, on the ground floors whereof according to the building and use plan, non-residential premises shall be adapted for other activity and have a main entrance from the street side, which does not coincide with the stairwell entrance;

2) on the premises of pre-school institutions;

3) on the premises of general education schools;

4) on the premises of vocational training institutions;

5) in  colleges;

6)  in universities;

7) in continuing and non-formal educational institutions;

8) in health care institutions;

9) in children’s sanatoria;

10) in cultural institutions;

11)  in libraries;

12)  in  theatres;

13) in museums and exhibition halls;

14) in credit institutions and other financial institutions;

15) in  shops;

16) in state and municipal institutions and services;

17) in cinemas, railways and bus stations, airports, seaports, except machines games if they shall be organised  in separate premises, not linked  to the direct functions of these institutions;

18) in post office premises, except the bookmaking and totalisator points established therein.

3. Founders and shareholders of the organising company, persons in control of them, members of the gaming company supervisory board, management board and all  company personnel shall be prohibited from participating (either individually, or through representation by another person or upon authorisation issued by another person) in the gaming  organised by their own company. Public servants engaged in the control and supervision of  gaming shall be prohibited from participating in the gaming, except when they are exercising control, in accordance with the procedure established by the Control Commission.

4. A company which is a gaming operator shall be prohibited from acting as the guarantor of other entities’ liabilities or providing any credit to other  persons.

5. Transactions conducted by the use of bank (debit, credit) cards and erection of ATM machines in premises in which gaming is organised, shall be prohibited.

6. Economic-commercial activity other than catering, sale of drinks, concert activity and currency exchange, shall be prohibited on the premises where gaming by machines, bingo, table games are operated.

7. Operation of gaming devices which are not supplied with a certificate and are unmarked,  as provided for in Article 16 (1,5,6) of this Law, shall  be prohibited;

8. Advertising of gaming shall be forbidden, except for the advertisements of names and addresses  except for the advertisements of names and addresses of  gaming establishments (casinos), bingo, machine halls and the types of games operated.  

9. Persons who are under 18 years of age shall be prohibited from participating in gaming. Persons who are 21 years of age and over may take part in gaming organised in gaming establishments (casinos). Persons under 21 years of age shall be refused entrance to the gaming establishment (casino). Admittance to gaming establishments (casino) of persons carrying  arms shall be prohibited, with the exception of officers performing their official duties in accordance with the law. The gaming operator must ensure compliance with the above requirements.

10. All shares of a company which is a gaming operator must be registered.

11. The shareholders of a company which is a gaming operator, who have transferred all or a part of their shares to other persons, must within 30 days notify the Control Commission thereof in the manner laid down  by it. Should the shareholder die, the person who inherits his shares must within 30 days of coming into the inheritance notify the Control Commission thereof in the manner laid down by the Commission.  In such cases, the Control Commission must resolve the question regarding the re-registration of the license for gaming operations.

12. A company which is a gaming operator shall be prohibited from manufacturing, as well as assembling from parts, repairing gaming devices, creating new or altering existing gaming  algorithm programmes.

13. A company  which is a gaming operator may not be a founder  or shareholder of other companies.

14. A license to operate gaming may not be sold or  in any other way  transferred  to other legal or natural persons.

15. Other prohibitions and restrictions of organisation  of gaming laid down in this and other laws of the Republic of Lithuania may also be applied.

Article 11. Requirements for Gaming Operators and  Control Commission Employees

1.  Persons with respect to whom or  close relatives or family members thereof 

an  operative investigation is underway regarding the maintenance of an illegal gaming establishment (casino) or  operating gaming or belonging to a criminal association,  and persons who have been convicted for grave premeditated crimes or crimes against property and business and finance practices may not become founders (shareholders) of a company operating gaming,  also persons who are in  control, of them, member of the supervisory board, management board and administration of the company, also their deputies, chief financiers, gaming establishment (casino) bingo, gaming machines hall administration chiefs, also their deputies, chief financiers, the gaming services personnel to the players and employees of the Control Commission.

2. The gaming operator shall be responsible for the competence and professional skills of the  personnel providing services to the players.

Article 12. Gaming Premises

1. Gaming shall be organised in:

1) gaming machines halls;

2) bingo facilities;

3) gaming establishments (casino).

2. Machine gaming, bingo and games in gaming facilities (casino) may be operated only on those premises, which are indicated on the licence to open gaming machines halls  and bingo  facilities,  gaming in gaming establishments (casinos).

3. The gaming machines number shall not be limited in gaming machines halls.

4. Only bingo games shall be operated in bingo facilities.

5. Games of roulette, machine games, card games and dice-throwing games may be operated  in a gaming establishment (casino). At least three gaming tables, with at least one of them being a roulette table  must be installed in a gaming establishment (casino).

Article 13. Requirements for the Authorised Capital of Companies-Gaming Operators

1. The fully  paid authorised and indicated in the Articles of Association share

capital of a company operating bingo, totalisator games and bookmaking must be no less than LTL 1 mill, and of a company operating horse-racing  totalisator, no less than LTL 0.5 mill.

2. The fully paid authorised and indicated in the Articles of Association share capital of a company operating machine gaming must be no less than LTL 2 mill., and in instances, when the company operates gaming at a gaming facility (casino), LTL 4 mill., for every gaming facility (casino) .

3. The fully paid authorised and indicated in the Articles of Association capital of a company operating several types of gaming must be no less than the biggest amount of   authorised  capital,  fixed for a specific type of game.

4. According to the investment procedure laid down by the Control Commission, investment in Government bonds and securities and in money in the bank accounts must constitute at least 30% of the authorised capital of the gaming operator companies in gaming establishment (casinos).

Article 14. The Right of Companies - Gaming Operators to Engage in Other Economic-Commercial Activities

Companies operating gaming in machines hall, bingo, table games,

and betting shall not have the right to engage in other economic-commercial activities.

Article 15. Requirements to Gaming Machine Halls, Bingo Facilities and Gaming Establishment (Casino) Premises

1. Gaming establishments (casinos) and bingo facilities shall be set up in isolated

premises having a separate entrance. The premises must be equipped with :

1)  a device, guaranteeing uninterrupted lighting and continuous, uninterrupted gaming process;

2)  a digital visual recording system, operating continuously during gaming (if gaming is operated in a gaming establishment (casino). The digital visual recording system must be installed above every table). The gaming operator must retain the records for 180 days and submit them to the Control Commission, the players who filed their claims as well as inquiry officers, investigators, prosecutors or the court in accordance with the procedure  prescribed by laws.

3) a separate cashing-facility for exchanging money for chips, and chips into money;

4) built-in fire-prevention system.

2. Gaming machines halls hall be located on isolated premises, having a private entrance. The premises housing these halls must meet the requirements laid down in Paragraph 1 (subparagraphs 1, 3 and 4) hereof.

Article 16. Gaming Equipment Requirements.

1. Only new and never operated previously gaming machines, shall be permitted  for operation in the Republic of Lithuania, provided they have been  manufactured  by a properly-licensed (certified) manufacturer  and when the types of the gaming machines  hall be attested and included in the Register of Measuring Instruments of Lithuania in accordance with the procedure established by the Law on Metrology.

2. The winnings fund of all types of gaming machines must comprise  at least 80% of the total stakes.

3. All of the gaming devices  must be the property of the company operating gaming or  may be acquired under lease with an option to buy (leasing).

4. Every gaming device must meet the requirements  established and approved by this Law and the Control Commission.

5. Each gaming device must have a certificate, issued by the agencies accredited with the National Accreditation Bureau.

6. Every gaming device having a certificate must be marked with a special mark in accordance with the procedure established by the Control Commission.

7. A company may change or start using new gaming devices only upon meeting the requirements of paragraphs 5 and 6 of this Article.

8. Log books must be filled for the gaming devices. The Control Commission shall  established the form and manner of completion thereof.

Article 17. Requirements for Cards and Playing Cards

1. Each card used in bingo, totalisator games and bookmaking must be numbered and have an individual number.

2. Companies, prior to starting operation of bingo, totalisator games or bookmaking, must register bingo, totalisator or bookmaking cards  with the local tax inspectorate, except when bingo, totalisator bookmaking cards are distributed through the direct communications system.

3. Playing cards must have a logo of the gaming establishment (casino) imprinted on the back.

Article 18. Gaming Regulations

1.Gaming shall be operated according to gaming regulations, which must indicate:

1)  the name of the game;

2)  location of gaming operation;

3)  rules of gaming;

4)  amount of stakes required for participation in the game:

5)  maximum sum of winnings;

6)  groups of winnings;

7)  procedure for accumulating and winning of “jackpot” (if such is formed);

8)  types of gaming cards, procedure of numbering, acquisition and returning thereof (if bingo is operated), except where bingo cards are distributed by means of a direct communication system;

9) procedure of payment of winnings;

10) procedure of submitting claim and settlement thereof.

2. Gaming regulations, its amendments and supplements shall be approved by the Control Commission.

3. Upon demand by the player the gaming operator must acquaint him with gaming regulations.

Article 19.  Payment of Gaming Winnings

1. In gaming establishments (casino) gaming machines halls and bingo facilities, winnings shall be  paid out only in cash, immediately, or no later than within 24 hours, if the winnings amount to over LTL 100 thou. At the player’s request winnings shall be paid out in cash, or by presenting the winner with a bank cheque, or making a  transfer to his bank account.  

2. A portion of the gaming machine or bingo winnings may be paid out as a “jackpot.”  A “Jackpot shall  be won  automatically at the same gaming machine or linking the gaming machines located in the gaming machines hall, belonging to the same operator. In instances when the “jackpot” is won by linking several gaming machines, there must be on display in an area visible to the players:

1) indication of the linked number of gaming machines and the location where they re operating;

2)  a special viewing screen, on which the sum making up the “jackpot”  is constantly in view;

3) indication of the percentage, which will be deducted from each game into the “jackpot.”

3.  totalisator and bookmaking winnings shall be paid out in cash immediately upon the presentation of the winning card.

Article 20.  Establishment of Identity of Players

1. The gaming operator must establish the identity of persons who are exchanging  at the cashing facility into cash chips amounting to over LTL 50000, according to the procedure established by the Control Commission..

2. The gaming operator must establish the identity of persons who have won over LTL 5000,  according to the procedure established by the Control Commission.

3. At the request of a player the gaming operator must issue him a certificate in the form established by the State Tax Inspectorate to substantiate the declaration of property.

4. The gaming operator  must retain documents and information  regarding the persons referred to in paragraphs 1 and 2 of this Article, for 10 years and I to submit it only to the Control Commission and inquirers, investigators, prosecutors or the court in accordance with the procedure established by laws.

5. In accordance with the procedure established by the Government, the gaming operator must inform the local state Tax Inspectorate  of the winnings and losses, if the sum of the winning or loss exceeds the amount specified in Article 2 of The Law of the Republic of Lithuania “On the Declaration by The Residents of the Republic of Lithuania of the Acquisition of Valuable Property or the Other Acquired and Transferred Funds,”

CHAPTER THREE

ISSUING OF LICENSES TO OPEN GAMING MACHINES HALLS, BINGO FACILITIES, GAMING ESTABLISHMENTS (CASINOS), SUPPLEMENTING OR AMENDING AND CANCELLATION OF THE LICENSES

Article 21.  Issuing of Licenses to open Gaming Machines Halls, Bingo Facilities, Gaming Establishments (Casinos)

1. The Control Commission shall issue licenses to open gaming machines halls, bingo facilities and gaming establishments (casinos).

2. Permits to open gaming machine halls, bingo facilities and gaming establishments (casinos) shall be issued to companies licensed to operate specific games, or shall be issued together with these licenses.

3. A company seeking a permit for opening a gaming machines hall  or bingo facility or gaming establishment (casino), shall submit to the Control Commission  an application specifying the company’s name, code, address of the registered office, telephone and fax numbers,  address of the gaming premises, telephone number thereof, types of games to be operated, the date of issue of license for operating games and its number (if the permit is issued to a licensed company), the duties, name and surname of the head of the company or a person authorised by him who has filled out and signed the application, and the date on which the application has been filed.

4. The following accompanying documents and information shall be filed together with the application for a permit to open a gaming machines hall or bingo facility of gaming establishment (casino):

1) gaming regulations;

2) specifications of the gaming devices (type, modification, manufacturer, date and month of manufacture) and documents attesting the   right of ownership of these, by the company  seeking to obtain a permit or their acquisition under lease (leasing) with an option to buy contracts;

3) the number of gaming devices;

4) gaming device conformity certificates issued by an agency accredited with the National Accreditation Bureau;

5) information prescribed by the Control Commission  about the premises for operating games;

6) documents, attesting the right of ownership to the premises in which the games will be operated, or a copy of contract of lease of these premises or lease with an option to buy;

7) rules setting the entrance fee into the gaming machines hall, bingo facility or gaming establishment (casino), procedure of its payment (provided a fee is charged);

8) a list of the names, surnames, personal identification numbers of the head of administration of the gaming machines hall, bingo facility or gaming establishment (casino), his deputies, finance directors and the gaming services personnel. 

5. The Control Commission shall have the authority to request additional documents and information, which are required for making a decision  regarding the issuance of license, and also to request an explanation or additional information regarding the submitted data.

6. Public servants of the Control Commission shall check if the premises intended for opening of gaming machines hall, bingo facility or gaming establishment (casino),  conform to the set requirements. An application for a permit to open of gaming premises must be considered within 30 calendar days from the receipt thereof. If additional documents and information is requested, the 30-day period  shall be calculated anew from the filing of the additional information and explanations and corrections. The overall time period for granting a permit must not exceed 60 calendar days from the day when all the necessary documents and information were filed for the first time.

7. The permit to open a gaming machines hall, bingo facility or gaming establishment (casino) shall specify the name, code, address of the registered office of the company  which is to operate games, telephone number, the address of the gaming premises, types of games to be operated, number of gaming devices and date of  issue of the permit.

8. The Control Commission, following the issue of a license to operate games, and a permit to open a gaming machine hall, bingo facility or gaming establishment (casino), within  5 working days after the issue of license (permit) shall inform the Tax Police Department under the Ministry of the Interior, the territorial state tax  inspectorates and territorial police agencies, on whose territory gaming is to be operated of the name, code, address of registered office, telephone and fax numbers, license type, number, permit number, address of premises where games will  be operated, types of games to be operated and the number of gaming devices.

9. A permit to open a gaming machines hall, bingo facility or gaming establishment (casino) hall be issued upon payment of  a set state fee and shall be valid for an indefinite time period.

Article 22.  Refusal to Grant a Permit to Open a Gaming Machines Hall or Bingo  Facility or Gaming Establishment (Casino)

1. The Control Commission may  refuse to grant a permit to open a gaming

machines hall  or gaming establishment (casino) if:

1) the application for permit or other documents provide knowingly incorrect information;

2) a company refuses  to submit  the documents, data or explanations indicated in (3,4,5) of  Article 21 of this Law, or the submitted documents do not conform to the requirements;

3) the premises where gaming machines or bingo or table games are to be operated, do not conform to the requirements;

4)  the gaming devices do not conform to the requirements of this Law and those established by the Control Commission;

5) persons specified in Article 21, paragraph 4 (8) of this Law do not conform to the  requirements laid down  in Article 11 of this Law.

2. The applicant shall be notified in writing of the decision to refuse granting a permit to open gaming facilities.

3. The refusal to grant a permit to open a gaming machines hall, bingo facility or gaming establishment (casino)  may be appealed against according to the procedure established by laws.

Article 23. Supplementing or Changing  the Permit to Open a Gaming Machines Hall, Bingo Facility or Gaming Establishment (Casino)

1. A company possessing a license to operate games and a permit to open a

gaming machines hall, bingo facility or gaming establishment (casino),  and wishing to install additional gaming devices on the said premises, must obtain the consent of the Control Commission. Such  consent shall be formalised as a supplement to the permit.

2. The company wishing to supplement the permit, shall submit to the Control Commission an application, indicating the company’s name, code address of its registered office, telephone and fax numbers, the address and telephone number of the gaming premises, types of  games additional operation whereof is intended and the number of gaming devices, the official position, name and surname of the company manager who filled and signed the application and the date of the filing of application.  The application shall be accompanied by the data and documents specified in paragraph 4 (1,2,3,4) of Article 21 of this Law.

3. The application for supplementing the permit  must be considered within 10 calendar days from the receipt thereof.

4. The Control Commission  may refuse to supplement the permit if the gaming devices fail to meet the requirements laid down by this Law and the Control Commission.

5. If a company, which possesses a license  to operate games and a permit to open a gaming machine hall or bingo facility or gaming establishment (casino), wishes to reduce the number of gaming devices or exchange them for others, it shall file an application to the Control Commission indicating the address of the premises where the gaming is operated and the number of gaming devices  it wishes to reduce and the type of devices it wishes to exchange.

6. The Control Commission shall change the permit within 10 days from the receipt of the application, indicating in the permit the number and types of the remaining gaming devices.

7. The Control Commission, having supplemented or changed the permit, shall notify the Tax Police Department under the Ministry of the Interior, territorial state tax inspectorates and territorial police agencies in whose territory gaming is organised, within 5 days from supplementing or changing the permit,  of the change in the number of gambling devices and indicate the name, code, address, telephone and fax numbers, permit number, address of the premises where gaming is operated, the types of games being operated, and the number of gaming devices of the company whose permit has been supplemented or changed.

Article 24. Revoking the Permit to Open a Gaming Machines Hall or Bingo Facility or Gaming Establishment (Casino)

1. A permit to open a gaming machines hall or a bingo facility or gaming

establishment (casino)  shall be revoked if:

1) this is requested by the company having the permit;

2) within a year following the granting of the permit, activities related to gaming

have not been started on the indicated premises;

3)  a license to organise gambling is cancelled  or the license is not reregistered;

4) it transpires that  knowingly incorrect data has been supplied in the application for the license or in other documents;

5) the premises where gaming is being organised, do not meet the requirements;

6) the lease contract concerning the premises where gaming is organised expires or the lease contract is terminated.

2. The Control Commission, having adopted a decision to revoke the permit, must send it to the license holder, within 5 workdays of the adoption thereof.

3. The decision to cancel a permit to open gaming premises, may be appealed against in accordance with the procedure established by laws.

Article 25.  Totalisator and Bookmaking Operations

1. The company which possesses a license to operate the totalisator or bookmaking,  may start operating these only when the Control Commission  approves gaming regulations.

2. The Control Commission shall lay down the regulations of the bookmakers’ work and procedure for the setting up of the bookmakers’.

CHAPTER FOUR

STATE CONTROL AND OVERSIGHT OF GAMING OPERATIONS

Article 26. Control Commission

1. The Control Commission  shall oversee and control the activities of the entities organising gaming. The Control Commission shall be comprised of 6 persons, of which number,  2 persons each shall be appointed by  the Republic President, Chairman of the Seimas and Prime Minister. The Chairman of the Control Commission shall be elected by members of the Commission from amongst themselves. An administration comprised of regular staff employees shall be established to perform the functions of the Control Commission. Its structure and personnel shall be approved by the Control Commission Chairman, without exceeding the annual compensation fund established by the Government.

2. The Government shall approve the regulations of the Commission.

3. The goal of the Control Commission is to oversee and control organisation of the gaming activities, in order to ensure the protection of the interests and rights of players and gaming operators.

Article 27. Establishment and Financing of the Control Commission

1. The Government shall be the founder of the Control Commission.

2. The Control Commission shall be financed from State funds.

Article 28. Main Functions of Control Commission

In implementing the provisions of this Law, the Control Commission shall:

1) examine documents, necessary for issuing  licenses for operating gaming;

2) examine  documents, necessary for issuing permits to open gaming machines halls or bingo facilities or gaming establishments (casinos);

3)  issue licenses to organise gaming and cancel the validity thereof;

4) issue permits to open gaming machines halls or gaming establishments (casinos), supplement and correct these  permits  and cancel their validity;

5)  oversee, how the requirements of the laws and other legal acts regulating the operation of gaming are adhered to by gaming operators;

6) draft legal acts regulating gaming operation.

Article 29. Rights of the Control Commission

In implementing the functions which have been assigned to it, the Control Commission, shall have the right to:

1) obtain information, which is necessary to perform  control functions;

2) check, how the requirements of this Law and other legal acts, are observed in places of gaming operations;

3) check the financial activities of the companies which operate gaming;

4) request that gaming operators submit explanations regarding gaming operation;

5) set the procedure of investing into Government securities of a part of the authorised capital  of the companies engaged in gaming activities;

6)  establish procedure of marking gaming devices;

7)  establish requirements for gaming devices;

8) establish the form of the record journals kept regarding gaming devices and the procedure of entering records there;

9)  set the procedure of establishing the identity of the persons  who have won more than LTL 5,000;

10)  set the procedure for establishing the identity of  persons who are changing cash into chips at a changing facility, whose value is greater  than LTL 5,000;

11) establish as to what type of gaming to attribute a game, if it does not correspond with all of the characteristics attributed to a specific type of gaming or corresponds to characteristics established for several types of gaming;

12) decide, what financial accounting, a company operating games, should  provide and what procedure should be employed in doing this;

13) apply the  means of persuasion, established by this Law and other legal acts,  to the companies operating games.

Article 30. Audit

The company operating games must, not later than within 4 months following the close of the business year, submit to the Control Commission  the conclusion and report of a certified auditor regarding the annul financial statements and publicly announce financial accounts checked by a certified  auditor.

CHAPTER FIVE

FINAL PROVISIONS

Article 31. Taxation of Companies Operating Games

Companies operating games shall pay taxes in accordance with the procedure established by the Law on  Taxes on Gaming and other legal acts.

Article 32. Liability for Violations of this Law

Violation of this Law shall incur liability under laws.

Article 33. Coming into Force of the Law

This Law, with the exception of Article 34, shall come into force from July 1, 2001.

Article 34. Proposals to the Government

To propose to the Government  by June 1, 2001:

1) to approve rules on the licensing of gaming;

2) to approve the amount of state fees and charges payable for the issue of licenses for operating games and for granting permits to open gaming machines halls, bingo facilities and  gaming establishments (casinos);

3) establish the Control Commission and approve its regulations.

I promulgate this Law passed by the Seimas of the Republic of Lithuania

PRESIDENT OF THE REPUBLIC                                   VALDAS  ADAMKUS