### Betting Duty Ordinance 《博彩稅條例》

6Y. Duty on and allocation of proceeds
(1) A duty is charged at the rate of 25% on the proceeds of each lottery that is conducted by a lottery conductor.
(2) The duty shall be payable by the lottery conductor. 
(3) The conductor—
(a) shall allocate 54% of the proceeds in prizes, whether in that lottery or any other lottery as the conductor may determine;
(b) shall pay 15% of the proceeds into the Lotteries Fund; and
(c) may retain 6% of the proceeds as commission.
(4) The Legislative Council may, by resolution, amend the rate of duty and the percentages of allocation specified in subsections (1) and (3) respectively.
(5) In this section—
Lotteries Fund (獎券基金) means the Lotteries Fund established by a resolution made and passed by the Legislative Council on 30 June 1965 (Cap. 2 sub. leg. D) and published in the Gazette;
proceeds (收益) means, in relation to a lottery, the total amount of bets that are placed on the lottery.

6Z. Restrictions relating to lottery tickets
(1) A person shall not make, print, issue, sell or offer to sell a lottery ticket unless the person is—
(a) a lottery conductor; or
(b) so acting on behalf of a lottery conductor.
(2) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5.
(3)  In this section, lottery ticket (獎券活動彩票) means a ticket that is used or to be used to—
(a) record the placing of a bet with a lottery conductor; and
(b) claim any prize that is payable on the bet.

6ZA. Interpretation of Division 5
In this Division—
Appeal Board (上訴委員會) means the Appeal Board established under section 6ZH;
holder (持有人) means, in relation to a licence, the company to which the licence is issued;
licence (牌照) means a licence issued under section 6GB, 6I or 6X. (Amended 17 of 2006 s. 17)

6ZB. Approval of constitution
(1) The constitution of a licensed company shall not be amended without the prior approval of the Secretary.
(2) Despite anything provided for in the constitution of a licensed company, any amendment of the constitution in contravention of subsection (1) shall be of no effect.
(3) In this section—
constitution (章程) means, in relation to a company, the memorandum and articles of association of the company, or other instrument constituting or defining the constitution of the company;
licensed company (持牌公司) means a company that holds a licence.

### Betting Duty Ordinance 《博彩稅條例》

6ZC. Codes of practice on compliance with licence conditions
(1) For the purpose of giving guidance on how the conditions of licences may be complied with, the Secretary may from time to time issue codes of practice.
(2) The Secretary may from time to time revise the codes.
(3) In any proceedings, including appeals under section 6ZG, if it is relevant to decide whether the holder of a licence has failed to comply with a condition of the licence—
(a) the holder is not taken to have failed to comply with the condition only because of the failure to comply with a code that relates to the condition; and
(b) a failure to comply with a code that relates to the condition shall be admissible in evidence.

6ZD. Variation of licence conditions
(1) The Secretary may, by notice in writing given to the holder of a licence, vary the conditions of the licence by—
(a) changing the terms of any condition that is imposed by the Secretary; or
(b) imposing new conditions subject to which the licence is to continue in force.
(2) The variation shall not take effect before the expiry of the period referred to in section 6ZG(2), being the period within which the holder of the licence may appeal against the decision of the Secretary to make the variation.
(3) The notice shall specify—
(a) the reasons for varying the conditions of the licence; and
(b) the date on which the variation is to take effect.
(4) Before varying the conditions of a licence, the Secretary shall—
(a) give the holder of the licence a reasonable opportunity to make representations; and
(b) consider the representations, if any.

### Betting Duty Ordinance 《博彩稅條例》

6ZE. Financial penalties
(1) The Secretary may, by notice in writing given to the holder of a licence, impose a financial penalty on the holder if the holder has failed to comply with a condition of the licence.
(2) The holder shall not be required to pay the penalty before the expiry of the period referred to in section 6ZG(2), being the period within which the holder may appeal against the decision of the Secretary to impose the penalty.
(3) A financial penalty that is imposed on the holder of a licence shall not exceed—
(a) $500,000 for the first occasion on which a financial penalty is imposed on the holder;
(b) $1,000,000 for the second occasion on which a financial penalty is imposed on the holder; or
(c) $5,000,000 for the third or any subsequent occasion on which a financial penalty is imposed on the holder.
(4) The notice shall specify—
(a) the reasons for imposing the penalty;
(b) the amount of the penalty imposed; and
(c) the manner in which and the date on or before which the penalty shall be paid.
(5) Before imposing a financial penalty on the holder of a licence, the Secretary shall—
(a) give the holder a reasonable opportunity to make representations; and
(b) consider the representations, if any.
(6) The Secretary shall not impose a financial penalty under this section unless, in all the circumstances of the case, the financial penalty is proportionate and reasonable in relation to the failure that gave rise to the penalty.
(7) A financial penalty shall be paid to the Government and the Government may recover any unpaid penalty as a civil debt.
(8) If the holder of a licence has duly paid a financial penalty, the Secretary shall not revoke the licence only because of the failure that gave rise to the penalty.
(9) For the purpose of this Part, if the Appeal Board has varied a financial penalty, the obligation to pay the penalty shall be discharged by paying the amount as varied.