Indian Lottery Act | Lottery Laws in India

Indian Lottery Act: -Gambling in India has been restricted to lotteries and horse racing. must be having a question about Lotteries in India- whether it is legal or illegal. There are no specific rules or regulations or guidelines which is putting a blanket ban on lotteries across the country. In the year 2015, the Supreme Court allowed the state government to put a ban on the sale of lotteries. Leaving 13 states i.e Maharashtra, Mizoram, Kerala, Nagaland, Sikkim, Punjab, West Bengal, Assam, Arunachal Pradesh, Meghalaya, Manipur, Madhya Pradesh, and Nagaland.

Indian Lottery Law

As per the Government Lotteries (regulation) Act which is established in 1998, the lottery means a scheme where the prize is distributed to the persons by chance by purchasing the tickets. It allows the government to organize, conduct and promote lottery on the following mentioned conditions:

  1. The prize will not be distributed on the basis if a single digit or any number which has been pre-announced.

  2. The authenticity of the Lottery should be ensured by the logo of the State government

  3. Tickets can be sold by the government either through itself or via selling agents

  4. Proceeds of the lottery would be transferred to the public fund of the state government

  5. Place of the draw should be confined within the territory of a concerned state

  6. Any unclaimed prize would become the property of the government when the said deadline has been crossed

  7. There should not be one draw in a week

  8. Time of the draw must be prescribed by the State Government

  9. Number of bumper draws shall not be more than 6 in a year

  10. Every rule made by the State Government must be laid as soon as or may be after it is made, before each house of the legislature

 

FAQs:

One must have certain questions in mind regarding Lotteries. Let us go through a few of them:

  1. Legality of International Lotteries:

Lotteries are banned across India except for 13 states, and one cannot play any lottery in the banned states.

  1. What if I have won the Lottery in the banned state?

One has to declare their earnings and have to pay the tax at 30% tax rate. Also, section 7 of the lottery suggests that any person, agent who has participated in any lottery or have organized it or have conducted it, sell, purchase or distributes the ticket, will be punished with rigorous imprisonment which may be extended up to 2 years

 

Ban on the Lotteries and its effectiveness:

These bans are not that much effective as the operators have devised various ways through which they introduce several tickets like ‘single digit’ fetching smaller prizes while Big weekly prizes are announced separately.

Also, many illegal lotteries have a wide reach as they are using the internet as their platform to reach to the audience.

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