Article 6
The net revenues mentioned by the Act shall mean the total amount for which lottery tickets have been sold less the sum of the amount paid out in prizes, administration and other lottery activities expenses. Administration expenses shall not exceed 15% of the total lottery sales amount.
All lottery net revenues shall be used by government only for the national pension system, the national health insurance program’s safety reserve and social welfare expenses, whilst the social welfare expenses should be limited to social insurance, welfare services, social assistances, national employment, and medical care etc; other than social welfare expenses that have been allocated and granted according to the Act Governing the Allocation of Government Revenues and Expenditures.
In order to supervise the appropriation and utilization of net revenues of lotteries, the Competent Authority shall establish a Public Welfare Lottery Supervising Committee that consists of members from representatives from central government, municipal governments, county (city) governments, related scholars, and social welfare communities; wherein representatives from governments shall not be more than one second of total representatives. Major decisions of the committee are executable only after being sanctioned by more than half of attended committee members, in which the number of attended committee members must be more than two third of that of the total committee members.
Surplus granted to all municipal governments and county (city) governments according to paragraph 2 above must be exclusively used for the purpose of social welfare as stipulated in the paragraph, and status of utilization thereof must be published on a seasonal basis. The Competent Authority must publish the status of surplus utilization on internet regularly, and the regulations for publishing and establishing of the preceding paragraph shall be drafted by the Competent Authority and then submitted to the Executive Yuan for approval.