Table of Contents
Introduction
Lotteries are legal in many countries around the world. But in India, lotteries are banned. This includes online lotteries. In India, most states allow people to buy lottery tickets. However, some states prohibit the sale of lottery tickets altogether
There are strict law against conducting lottery schemes in India. For example, under Section 419A of the Indian Penal Code, anyone guilty of running a lottery scheme can face up to 10 years in prison. However, online lotteries are allowed. These include Mega Millions, Powerball, Lotto, Euromillions, Lucky Dip, and others.
The northeastern states of India are a popular hub for tourists and adventure sports lovers. In Meghalaya, one unique adventure game form is the Shillong Morning Teer games, which is regarded as one of the most prominent lotteries in the northeast. However, it brings the legality of the lottery (or the lack of it) into the limelight.
Laws related to the lottery in India
Lottery in India is governed by the Lotteries (Regulation) Act, of 1998 and the Lotteries (Regulation) Rules, 2010
Section 2(b) of the stated Act defines lottery as “a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in the chances of a prize by purchasing tickets”.
Section 6 of the said Act gives power to the Central Government to prohibit a lottery organized, conducted, or promoted in contravention of the provisions of the specified Act, while Section 7 concerns the penalty provisions.
The Indian Penal Code, 1860 under Section 294A provides that whoever keeps any office or place for the purpose of drawing any lottery, not being a State lottery, or a lottery authorized by the State Government, shall be punished with imprisonment for a term which may extend to six months, or with fine, or with both.
Section 30 of the Indian Contract Act, of 1872 states that agreements by way of wager are void.
Furthermore, the Consumer Protection Act prohibits the conduct of any contest, lottery, game of chance, or skill, for the purpose of promoting, directly or indirectly, the sale, use, or supply of any product or any business interest.
The legality of lottery in India
There is no ban on lotteries in certain Indian States such as Arunachal Pradesh, Assam, Goa, Kerela, Maharashtra, Meghalaya, Punjab, and Sikkim.
The power lies in the hands of the State Governments to map out laws for regulating, licensing, and taxing lotteries. as per the recent elucidation by the NITI Aayog, lucky draws that are directed towards encouraging digital transactions do not come within the ambit of lottery and are consequently not banned.
As per Maharashtra lottery Law
Maharashtra has legalized online gambling. It also allows people to play lottery games on their mobile phones. This means that if you want to run an online lottery business in Mumbai or Pune, you don’t have to worry about any legal issues.
note- Maharashtra lottery law and lotteries here and find out all the details.
Online international lotteries
International lotteries are organized by foreign operators outside India and the actual lottery is also drawn outside the country, the law of the land is not applicable. Thus, people from those Indian States where a lottery is considered to be illegal can also play online lottery. Private Indian lotteries are, however, banned.
At the End
The Lotteries (Regulation) Act, of 1998 was essentially enacted to protect the interest of the credulous public and the poor so as to prevent them from becoming addicts and falling into the abyss of bankruptcy. The organization and promotion of the lottery rest with the State Governments to protect the interest of the public.
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