Lottery Purchase: In India, there are very few states where lotteries are conducted lawfully. As per the Union Ministry of Home Affairs, a State Government is permitted to run or advertise a lottery under Section 4 of the Lotteries (Regulation) Act 1998, provided that certain specific conditions are met.
Legal Framework
“As per section 4 of the Lotteries (Regulation) Act, 1998, a State Government may organise, conduct or promote a lottery, subject to the conditions specified therein. Accordingly, lotteries are being run by 09 States viz. Arunachal Pradesh, Goa, Kerala, Maharashtra, Mizoram, Nagaland, Punjab, Sikkim and West Bengal,” According to Nityanand Rai, Union Minister of State in the Ministry of Home Affairs, in a written response to a question in the Lok Sabha on Tuesday (March 14).
List of States Where the Government Manages Lotteries
- Arunachal Pradesh
- Goa
- Kerala
- Maharashtra
- Mizoram
- Nagaland
- Punjab
- Sikkim
- West Bengal
Regulatory Framework Establishment
In order to regulate lotteries, the government created the Lotteries (Regulation) Rules, 2010 in accordance with the Lotteries (Regulation) Act, 1998.
Under Section 10 of the Lotteries (Regulation) Act of 1998, the Ministry of Home Affairs issued guidelines in 2011 stating that the State Governments were accountable for ensuring that the provisions of the Lotteries (Regulation) Act of 1998 and the Lotteries (Regulation) Rules, 2010 were followed in letter and spirit.
Ministry’s Vigilance
To ensure the integrity of the hardware and software used for the operation of online lotteries, the Ministry of Home Affairs directed all states that run lotteries in 2018 to have their hardware and software certified by the Standardisation, Testing and Quality Certification Directorate (STQC).
Additionally, in 2019, all States that operate lotteries received instructions stating that combining online and offline lottery features is against the Lotteries (Regulation) Rules, 2010 and should be immediately discontinued in any case already initiated by a State government that organises lotteries.
Ministerial Declaration
The Minister stated in a written declaration presented to the Lok Sabha on August 2, 2022, that the State Governments of Punjab, Sikkim, and Nagaland had been notified of complaints pertaining to the sale of paper lottery tickets via websites and mobile applications.
Punjab’s Firm Stand
“Government of Punjab has informed that they have already prohibited the sale of computerised and online lotteries and not authorized any distributor to sell the lottery tickets in online mode. Government of Sikkim has informed that the State is not aware of the selling of paper lottery ticket through either websites or Whatsapp application on mobile,” the minister had said.
“Government of Nagaland has informed that the State Government has neither given any permission to its distributor for sale of paper lotteries through online mode nor the distributor of Nagaland State lotteries have sold/are selling the tickets through websites accepting payment online and through Whatsapp application on mobile,” he added.