05-08-2025
Lottery System: How Much Do Kerala And Punjab Earn? Which Model Will Himachal Adopt?
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The Himachal Pradesh government plans to restart its state-run lottery digitally, nearly three decades after its ban, sparking debate over its social impact
The Himachal Pradesh government has cleared the way for restarting the state-run lottery system, nearly three decades after it was banned. In a decision taken by the Cabinet on July 31, the state announced its intention to bring back lotteries in a digital format, modelled on existing frameworks in states like Punjab. However, the move has sparked sharp political opposition and ignited fresh debate over the social and ethical implications of such a system.
The original lottery system in Himachal was first suspended in 1996 following a High Court order triggered by a letter from then Solan MLA Rakesh Pant. It was permanently scrapped in 1999 during the tenure of then Chief Minister Prem Kumar Dhumal. Now, under the Congress-led government, Chief Minister Sukhvinder Singh Sukhu's cabinet has opted to reintroduce the system, but this time, through an online platform.
Officials suggest that the state could adopt a model similar to Punjab, where the lottery is state-regulated, legally sanctioned, and contributes significantly to the exchequer. In Punjab, bumper lotteries are organised during major festivals like Diwali, Holi, New Year, Lohri, and Baisakhi, alongside regular weekly and monthly draws. Ticket prices range from Rs 20 to Rs 500, and draws are conducted under official supervision.
The legal framework for such lotteries in India is provided by the Lotteries (Regulation) Act of 1998, later amended in 2010. While the Act is central legislation, lotteries are treated as a state subject, giving individual states the autonomy to permit or ban them.
States like Kerala, Sikkim, Maharashtra, and Punjab have retained legal lottery operations. In 2024-25, Kerala reportedly earned over Rs 13,500 crore through its lottery department, while Sikkim's lottery revenue was around Rs 30 crore. Punjab, for its part, recorded Rs 235 crore in earnings in the last financial year.
Penalties for Illegal Lotteries
Despite the legitimacy of state-run lotteries in some parts of the country, operating unauthorised or fake lotteries remains a serious offence. In Punjab, those found running illegal platforms, including digital or unlicensed draws, can face jail terms ranging from six months to two years and fines between Rs 10,000 and Rs 1 lakh.
Political Backlash in Himachal
The reintroduction of the lottery system has provoked criticism from the opposition Bharatiya Janata Party (BJP). Former Chief Minister Prem Kumar Dhumal reiterated that the system was deliberately abolished during his tenure to curb exploitative practices. BJP leaders have raised concerns about the potential social impact, especially in a hill state with limited economic mobility.
However, CM Sukhu's media adviser, Naresh Chauhan, dismissed the opposition's stance as 'hypocritical", saying that many BJP-ruled states operate government lotteries but some party leaders have criticised the move in Himachal. He also claimed that the BJP receives sizable donations from states where the lottery is active and accused the party of selective outrage.
What Happens Next?
The state government has not yet revealed the launch date for the digital lottery system or the detailed operational guidelines. But it has indicated that the system will be implemented under strict legal oversight to ensure transparency and prevent abuse.
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