Government Lottery in India
- Date update:
India does not have any federal law prohibiting lottery other than what exists in a state-exclusive law. That means the legality of participating in gambling activities is dependent on the laws of each state. Currently, only 13 states allow this type of entertainment to their residents, while the remaining 17 are against the lottery. Indian states that permit lottery offer government lottery in India, which is the only legal way of playing local lotteries. Nevertheless, there are several international gambling opportunities residing in the country that punters can still enjoy. Especially popular option is online lottery. We have created this guide to help you understand how the Indian government works and what lottery alternatives are available to everyone residing in India. Dive in to start your gambling journey fully prepared!
Lottery FAQ
Government Lottery Online – Similar Sites
You can mostly access the official state lottery in physical outlets. Nevertheless, here are some good Indian lottery sites available for enjoying online government lottery in India.
| Indian Lottery Site | Features |
Lottofy | ✔ Affordable ticket price ✔ Best syndicate option ✔ Accepts INR |
Lottoland | ✔ Reputable Indian lottery site ✔ Supports Indian Rupees ✔ User-friendly interface |
Lottosmile India | ✔ Exclusive to Indian players ✔ Offer jackpots ✔ Quick deposit and withdrawal |
History of Lotteries in India
In the early days, the Indian federal government fully controlled gambling in all its states. In 1998, the Lotteries Regulation Act 1998 transferred the right to prohibit or permit lotteries to the state government. This means the decision to promote or ban them is up to each state. As a result, private vendors were banned from providing gambling opportunities, allowing states to launch their own lotteries. With this right, Kerala was the first state to create a state lottery. Afterwards, 12 more states have done the same.
However, people residing in Indian states that prohibit lotteries now have online lotteries. It is all thanks to international lotteries.
Legal Framework for Lotteries in India
India is one of the countries in the world that frowns at gambling activities. Nevertheless, there has not been any rigid federal law fully prohibiting playing lotteries in Indian states; rather, there have been some legal frameworks to provide guidelines on how to partake in lotteries lawfully in India. Check below.
The Lotteries (Regulation) Act, 1998
The Lotteries (Regulation) Act of 1998 is a federal law that transferred the right to allow or ban lotteries to state levels. This Act came into being when the Kerala government established a state lottery department and stopped private bodies from establishing lotteries. Not long after, other states did the same.
As a result, the central government formulated the Lotteries Act of 1998, and section 4 of the Act states the following:
- Every Indian lottery ticket must carry the logo of each state government it belongs to.
- The state government or authorized distributor should be responsible for selling the government lottery
- All the income made from the lottery ticket sales should be remitted to the state’s account.
- The state government should be in charge of the lottery
In addition, the sections 5 and 7 of the Act declare the below rules:
- A state government has the right to ban the sale of lottery tickets from other states within its jurisdiction.
- There is a punishment of two years imprisonment or a fine or both for the Head of each state lottery department when there is a deviation from the provisions of the Act.
State Lottery Regulations
State lottery regulations follow the provision of the Lotteries (Regulation) Rules, 2010. Although the Indian state governments have the exclusive right to conduct lottery activities, they must adhere to the provisions of the Lottery Acts, 2012. Below are some of the rules stated in this Act.
- The state government has the right to conduct any type of
- Indian state lotteries should be announced via each state’s official Gazette.
- The lottery notification should contain information such as lottery type, ticket price, purpose, prizes, scope, and the draw method.
- Earnings from lottery ticket sales should be deposited to the Public Ledger Account of the state.
- The price of the lottery ticket should start from ₨200, while the lottery prize should not be less than ₨10,000
- The state government must take a record of the number of printed lottery tickets, sold tickets, and winning tickets.
Types of Government Lotteries
Below are the varying types of govt lotteries in India.
Paper Lotteries
Paper lotteries are referred to as traditional lotteries in Indian state lottery. It means purchasing lottery tickets from an authorized physical agent or designated place. Also, paper lotteries are limited by geographical factors. You can only play paper lotteries within the border of your state, and the sale of lottery tickets has a stopping time.
Online Lotteries
Online lotteries are upgraded versions of the traditional ones brought about by advancements in technology. This type of lottery means participating in games on a site or mobile app. It entails buying lottery tickets from an international gambling website, getting your lottery numbers online, and waiting for the result. Nevertheless, ensure you choose a licensed platform for secure gameplay.
Instant Lotteries
Instant lotteries are also known as Scratch cards. It means playing a lottery game by buying scratch cards from an authorized agent and scratching the card to check if the numbers match the winning combination. This type of lottery is popular because it offers instant results; hence, it is easy and fast.
Lottery Ticket Distribution and Sales
Here is a breakdown of government lottery tickets distribution and sales in the Indian state lottery.
| Government Lottery in India | Minimum Price Ticket | Number of Weekly Draws |
Kerala | ₨ 40 | 14 |
Assam | ₨ 2 | 13 |
Goa | ₨ 6 | 6 |
Sikkim | ₨ 2 | 14 |
Punjab | ₨ 20 | 16 |
Mizoram | ₨ 10 | 14 |
Maharashtra | ₨ 10 | 10 |
West Bengal | ₨ 2 | 13 |
Nagaland | ₨ 6 | 4 |
Manipur | ₨ 6 | 21 |
Arunachal Pradesh | ₨ 6 | 7 |
Meghalaya | Unknown | Unknown |
Madhya | Unknown | Unknown |
Popular Government Lotteries in India
There are 13 state lotteries in India available to Indian punters. See below.
| Government Lottery in India | Biggest Jackpots Prizes |
Kerala State Lottery | ₨ 10 crore |
Mizoram State Lottery | ₨ 10 crore |
Nagaland State Lottery | ₨ 10 crore |
Maharashtra State Lottery | ₨ 1 crore |
Meghalaya State Lottery | Not Available |
Madhya State Lottery | Not Available |
Manipur State Lottery | Not Available |
Arunachal Pradesh State Lottery | Not Available |
Goa State Lottery | ₨ 5 crore |
West Bengal State Lottery | ₨ 1 crore |
Assam State Lottery | Not Available |
Punjab State Lottery | ₨ 3 crore |
Sikkim State Lottery | ₨ 2.5 crore |
Lottery Taxation and Financial Management
All lottery winnings in India are subjected to tax levy. See below for the percentage of tax deducted from the lottery winnings of Indian punters.
Taxation of Lottery Winnings
The provisions of the Income Tax Act of 1961 levied a tax on both physical and online govt lottery winnings. The Act states that
“Any winning below ₨ 10,000 is subjected to a flat tax of 31.20.”
Section B of this Act also states that
“Any lottery winnings above ₨ 10,000 by residents will be subjected to a 30% tax deduction”
while it is 31.20% for non-residents. However, there are cases where lottery prizes are given in the form of kind or property. In such a situation, the winner must pay the tax before the prize is given.
Importantly, you should know the taxation of lottery winnings is different from personal income taxation as it is regarded as income from a different source.
Allocation of Lottery Proceeds
According to section 4 of the India lottery code, the state government or an authorized agent is responsible for govt lottery ticket online sales. The proceeds from the sales of the tickets shall be deposited into the State Public Ledger Account.
Auditing and Financial Accountability
To ensure the accountability of the lottery products by state lottery in India, audits are carried out. The Comptroller and Auditor General of India is the watchdog of every earning from lottery activities conducted in all 13 Indian government lottery options. However, irregularities have been detected in the conduct of government lottery in India.
Sum Up about Government Lottery Online in India
The Lotteries (Regulation) Act of 1998 gave Indian states the exclusive right to legalize lottery within their borders. Following this Act, 13 states created a government lottery in India, while the other 17 states banned lottery. Nevertheless, the creation of international online lotto sites has made lottery accessible for all Indians. All you need to do is just ensure you select a licensed and safe site.
