The Central Lotteries Regulation Act of 1998

Indian Players Accepted

While much of India’s gambling is governed by India gambling laws, the Central Lotteries Regulation Act of 1998 is a separate piece of legislation aside from previously enacted laws to provide a guideline on how to regulate and conduct all central lotteries in a lawful manner. However, the Indian Constitution has made it so states have a say in their level of involvement with gaming within their borders, making gaming a state subject. While nearly all forms of gambling are illegal within India the Central Government has allowed certain exceptions such as acknowledged games of skills and lotteries; again, to touch on the point made earlier, states have the option to completely ban either or. With this, states are authorized to organize, conduct, and promote local lotteries. However, states must obey the provisions provided for by the Central Lotteries Regulation Act of 1998 in order to lawfully offer lotteries within their borders.

General Information of The Central Lotteries Regulation Act, 1998


The Act provides details of how independent agencies within a state permitted to offer lotteries may obtain authorization from said state to conduct and offer such product. Agencies must obtain written authorization and act as a distributor or representative of the state in order to organize lotteries. The state itself may also organize lotteries but again must follow guidelines stated by Section 4 of the Central Lotteries Regulation Act of 1998. However, not all states are permitted to offer lotteries such as the state of Nagaland, Mizoram, and Himachal Pradesh in which lotteries are specifically prohibited. Other states such as the Sikkim Government are permitted to offer lotteries online and transact sales of lotteries through online portals, this is due to Sikkim’s legal online platform, gaming services, and licensing.

Details of The Central Lotteries Regulation Act, 1998

This law allows for the Central Government of India to control the conduct of lotteries within each state. The Act creates regulatory roles for the central and state level governments as where central governments must keep track of states running lotteries and states must ensure their lawful participation and execution of lotteries within their borders. Under the Central Lotteries Regulation Act of 1998, private individuals are forbidden from operating and running any lottery schemes. The Act also states rules for the look of lotteries themselves in which they must have a logo or type or mark identifying them and the lottery retailer/operator. In order to lawfully provide lotteries, states and their authorized selling agents are prohibited from pre-announcing prizes before drawings and are not permitted to allow more than one lottery drawing per week and no more than six bumper draws within one calendar year.

States that are not inclined to run the business of lotteries within their state are permitted under the Central Lotteries Act of 1998 to restrict the sale and circulation of lottery tickets from other states within its territorial borders, such as the case of Himachal Pradesh. However, the Central Government of India may impose rules for the prohibition and control of lotteries within India if deemed necessary. Penalties for violating any of the Central Lotteries Regulation Act of 1998 regulations can lead to imprisonment, fines, or both and all arrests are made to be cognizable and non-bailable.

Original Intent of India’s Central Lotteries Regulation Act, 1998

This Act was originally drafted to regulate lottery sales and bring the business of distributing lotteries back in the hands and control of state governments instead of private individuals. While India’s Legislature and Judiciary have frowned on chance gambling within India, few exceptions have been made toward games of skills and lotteries. Although lotteries can easily be classified as a chance game, due to the lack of any skill involved, it is still considered a legal form of gambling. This may possibility be due to the immense sales and tax revenue received from legal forms gambling. Most speculate that the act was created to bring legal funds of gaming back into state governments, however, others believe state and central governments simply wish to ramp up lottery tax and sales revenue to fund special interest projects. This being said, while sales revenue or proceeds are ordered to be placed in the State’s Treasury or ‘public account of the state’ it seems as though the revenue made from lotteries does not trickle back down to benefit the public.


The Central Lotteries Regulation Act of 1998 was amended in 2010 in order to provide clearer definitions and language to meet modern needs. The additions made to the original Lotteries Regulation Act of 1998 were made under the new amendment called the Lotteries Regulation Rules of 2010 in which terms like ‘Central computer server’, ‘online lottery’, ‘prizes’, ‘security deposits’, etc. where explicitly defined. Not only that, Section 3 of the Central Lotteries Regulation Acct of 1998 was completely rephrased, and new guidelines were made to keep track of the sale of lottery tickets in individual states. This new amendment strengthened the Lotteries Regulation Act of 1998. While the Central Lotteries Regulation Act is still effective and applicable throughout India and remains a general guideline to determine the restrictions and conduct of lotteries within each State, the newly enacted Lotteries Regulation Rules of 2010 have provided much needed legal language to help guide the sale of lottery tickets online and the conduct of such over the internet.


How Are India’s Lotteries Legal?

Many punters try to understand why lotteries are legal, yet other forms of chance games are not, for the most part it is rather easy to not question the reason why and just enjoy the availability of said legal form of gambling. However, many may not know of the Indian Contract Act of 1872 which deeply affects lotteries in India. To explain, the Indian Contract Act of 1872 provides an account which still holds true today; the law states that lottery agencies, i.e. state operators and their representatives, are not required to payout to winners if they choose not to and punters are not legally able to claim their winnings. If this seems unfair, just know that this law was strengthened in legitimacy after an Indian justice stated that the law was created to ‘discourage people [from] entering games of chance and make earning by trying their luck instead of spending their time energy and labor for more fruitful and useful work…”. This is due to the general view of lotteries as a hinder to social and economic development.

After numerous legal battles challenging this archaic Act, the ruling remains that if lottery agencies choose to not pay punters have no legal forms of actions they can take against said agencies. Therefore, lotteries are legally available within India and its states and it remains legal to purchase lottery tickets from legal state lottery representatives, but nothing can guarantee payment of winnings earned if punters win the lottery. Simply put, state-based lotteries may be legal, but they are not necessarily fair. However, Indian punters can legally access fair and legitimate online lotteries through offshore internet portals to licensed online casinos for India players. There, punters are able to participate in online scratch-offs, lottery jackpots, keno, and other legal forms of gaming with legitimate payout methods.

What Other Forms of Gambling Are Legal in India?

Gambling on chance games remain completely illegal in India, however, there are exceptions made to games of skill such as betting on Rummy, Chess, Golf, Poker and Bridge. There also remain various avenues in which Indian punters can legally access games of skill and games of chance through offshore internet operators as they are not explicitly forbidden under any of India’s gambling laws. These operators may offer platforms that specialize in betting wagers on India online sportsbooks, legal offshore online poker, and online casino gambling at offshore gaming destinations.