FROM THE REPUBLIC OF TURKEY PRIME MINISTRY PRIVATIZATION ADMINISTRATION

 PRIVATIZATION OF GAMES OF CHANCE

NATIONAL LOTTERY ADMMINISTRATION (NLA)

PRIVATIZATION OF GAMES OF CHANCE

Within the framework of the provisions of decree Law No. 320 dated 4/4/1988; the right to plan and organize Games of Chance in exchange for cash and the right to arrange drawings, resides in the National Lottery Administration General Directorate.

With the amendments made in Law No. 4971 and decree Law No. 320, granting the licence of Games of Chance was enabled, and recent legal arrangements were finalized through Law No. 5793  and decree Law No. 320 for enabling grant of the mentioned licence.

The additional article No.2 of decree Law No. 320 (provisions related to granting the licence) states that;

• The license can be granted partially or wholly to a state economic organization established within the framework specified by the Council of the Ministers or incorporated companies established in accordance with the provisions of the Turkish Commercial Code,
• Licences will be issued for a maximum of 10 years,
• The Privatization Supreme Council takes the decision as to the commencement of license granting,
• The valuation and tender procedures with respect to license granting are implemented by a Commison formed by five members, Deputy chairman from the Privatization Administration (PA), deputy general manager and head of department from NLA, a head of department from the Ministy of Finance and a head of department the Undersecreteriat of Treasury. The representative of the PA supervises the commission and the PA provides the services of secreteriat,
• In tenders pursuant to the license granting, the bidding procedure existing in the Privatization Law No: 4046 is applied. The Privatization Supreme Council approves the tender results,
• After the approval of the results the licence agreement shall be signed by the PA, licencee and NLA.
• The Licencee shall not transfer the right of licence to another.
• NLA may not arrange games of chance and drawings that are subject of the license throughout the duration of the license,
• The evaluation of the licence value will be determined by Evaluation and Tender Commission. This evaluation will be implemented by the Commission by using evaluation methods which are currently being implemented and accepted within international finance and capital markets as well as by taking into account the current global economic condition. The evaluation results that the Committee reaches shall be approved by the Council of Ministers.
• The money paid by the Licencee as of licence value shall be transfered to the Treasury after deducting the charges covered by the Privatization Fund during tender process.
• Share of 3% (three percent) of the monthly proceeds shall be paid to the Administration by the Licensee during the license period with notice to the Administration.
• If the revenues or other revenues are hidden by the Licencee, the Licencee shall not collect any amount from that hidden part.

NLA is authorized to audit and monitor the Licencee who shall ensure that the games of chance activities forming the subject of license are carried out effectively, securely, reliably, uninterruptedly and in a manner to protect public and consumer interest.

The process of granting the license for the right to plan and organize Games of Chance in exchange for cash and arrange drawings, which currently resides with the National Lottery Administration General Directorate within the framework of the provisions of decree Law No. 320 dated 4/4/1988, has been begun pursuant to the decision of the Privatization High Council no. 2003/62 dated 12/09/2003 . According to decision No: 2008/62 dated 19/09/2008 of the Privatization High Council, the license shall be granted as a whole for a period of 10 years after the commencement of operations. Ernst&Young Finansman Danışmanlık A.Ş. and Qlot Consulting AB is the consultant for the tender process.

According to Law No. 5602 which came into force on 01.04.2007;

·        The total of all kind of investment and operating costs in a calendar year shall not exceed 20% of  proceeds and other revenues total that the related body (Licencee) generates in the same period.

 The regulation regarding the grant of the License for Games of Chance and the Arrangement and Supervision of Operations subject to the License was published in the Official Gazette No. 27025 dated 15 October 2008.

REPUBLIC OF TURKEY

PRIME MINISTRY

PRIVATIZATION ADMINISTRATION

Ziya Gökalp Caddesi No: 80, Kurtuluş 06600 / ANKARA

Phone: +90 312 430 45 60   Fax: + 90 312 / 432 04 52

www.oib.gov.tr