Digital Money

Lottery Business in India – Ban or What? Which states allow?

lottery India states allow

What is the status of lottery business in India – Is it ban?

The lottery has been a popular way of trying to win thousands, if not millions of Pounds, Dollars or Euros for many years now. However, in India the history has been trickier but ultimately just as popular as all of the other countries around the world. 

So why has it been so tricky for Indians in the country to be able to enjoy playing the lottery and possibly win a massive amount of rupees? 

The ban

Although the lottery is run by the government, it does not mean the government is fully behind the idea of the lottery. In 1967 there was a country wide ban on private monopolies and lottery companies. This is why the state took control of the lottery in an attempt to regulate the betting culture in the country. Kerala State Government were the state to occupy the lottery industry in their state first.

However, not all states in India allow the lottery to be played in their states. Just 13 of the 28 states allow the lottery since the ban in 1967. But like the Kerala State many states saw the lottery as a good thing and now these states control the lottery in Kerala, Goa, Maharashtra, Madhya Pradesh, Punjab, West Bengal, Assam, Arunachal Pradesh, Meghalaya, Manipur, Sikkim, Nagaland and Mizoram.

What does the lottery do?

It is not just about winning money to distribute straight back to the winner, the lottery brings in lots of income for the state and is hugely profitable for those states that participate within the laws of the lottery. 

In the fiscal year 2017-2018 Kerala collected GST worth Rs 908 crore and state revenue of Rs 1,691 crore. This a huge sum of money just for one year and the state felt the important effects of this as it provided a huge economic boost. 

WIll there be a change to the states that do not participate?

More than likely not. The legal structure of the lottery is run by the financial department and it can be tough for the financial department to get through certain regulations to allow participants from that state to play the lottery.

Indian states are wary of the effects of the lottery and feel it is not one they want to be involved in. With the effects tempting the poorer people in society to try and win big money by gambling the little money they have already.

However, there is no legal stipulation that stops someone from buying tickets from a state that does not have the lottery to one that does. The ban could do with clarity to help protect people, if that is the aim of the Indian government. 

It is also the case that many people can still do the Indian lottery online, which has frustrated state governments, however they cannot control people gambling online even if they tried to block payment websites such as Googlepay. 

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