Lok Sabha Question No. 1237 (UNSTARRED), answered on 2025-12-08
Subject: Lotteries Regulation in the Country
Ministry: FINANCE
Asked by: Shri Anurag Singh Thakur

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 1237

## TO BE ANSWERED ON MONDAY, DECEMBER 08, 2025/AGRAHAYANA 17, 1947 (SAKA)

## LOTTERIES REGULATION IN THE COUNTRY

## 1237. SHRI ANURAG SINGH THAKUR:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has recently conducted any study/assessment regarding the revenue generated from lotteries conducted  by  different  States  in  the  country,  if  so,  the  details thereof;
- (b) whether the Government has taken note of the compliance by States with the provisions of the Lotteries (Regulation) Act, 1998, particularly  with  regard  to  conduct,  regulation  and  prohibition  of lotteries, if so the details thereof along with the details of revenue collected by the Union and the State Governments from lotteries, including GST during the last five years, year-wise;
- (c)  whether  instances  of  violation  of  Section  4  of  the  Lotteries organising lotteries)  and  proliferation  of  unregulated/online  lotteries  have
- (Regulation) Act, 1998 (relating to conditions for been reported in the country, if so, the details thereof; and
- (d)  the  measures  being  taken  by  the  Government  to  strengthen monitoring,  curb  illegal  operations  and  ensure  that  legitimate revenue  under  the  Lotteries  (Regulation)  Act,  1998  and  GST framework is duly protected?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a) No such study/assessment has been conducted recently.

## (b), (c) and (d)

Ministry of Home Affairs has issued directions on 02.08.2011 under Section 10 of the Lotteries (Regulation) Act, 1998 stating that it is the  responsibility  of  the  State  Governments  to  ensure  compliance with the provisions of the Lotteries (Regulation) Act, 1998 and the Lotteries  (Regulation)  Rules,  2010  in  letter  and  spirit.  Further, directions have  been issued by Ministry of Home  Affairs on 18.07.2018 to all the lottery running States to have their software/hardware used for online lottery certified by Standardization, Testing and Quality Certification Directorate (STQC)  to  ensure  integrity of  the  hardware/software  used  for operation  of  online lottery.  Thereafter,  instructions  have  been issued  on  22.01.2019  to  all  lottery  running  States  that  a  lottery combining features of online and paper lotteries is not in accordance with the Lotteries (Regulation) Rules, 2010 and therefore, the same be stopped forthwith in case already launched by  any  of  the  lottery  organizing  State  Governments.  Taking  into cognizance the responsibility assigned to lottery organizing States under the Lotteries (Regulation) Rules, 2010, the complaints received  in  the  Ministry  are  forwarded  to  the  concerned  lottery organizing States for appropriate action. The  information  related  to  revenue  collected  from  sale  of  lottery tickets  by  the  State  Governments,  falls  under  the  purview  of  the concerned  State  Governments.  Further,  under  GST,  there  is  no distinct tariff item  or service  code  for  the  supply  of lottery. Therefore,  it  is  not  possible  to  provide  the  requested  information regarding GST revenue from lotteries. Under  the  GST  framework,  the  following  measures  are  already  in place, to strengthen monitoring, curb illegal operations and ensure

that legitimate GST revenue is protected:

-  GST  is payable @40%,  with  effect  from  22.09.2025,  on  the lottery tickets at the stage of their sale by the State Governments to lottery  distributors  or  selling  agents.  This  is payable  by  the  lottery  distributors  or  selling  agents  on  a reverse charge basis.
-  No  GST  is  collected  on  further  sale  of  the  lottery  tickets  as these transactions have been exempted.
-  The GST rate on lottery has been rationalized from 01.03.2020 onwards wherein  the  distinction  between  lottery run  by  State  Governments  and  lottery  authorized  by  State Governments was done away with. Prior to 01.03.2020, lottery attracted two GST rates, namely, lottery run by State Governments at 12% and lottery authorized by State Governments at 28%. From 01.03.2020 till 22.09.2025, lottery attracted a  uniform  rate  of 28%  GST  and  from  22.09.2025  till date it attracts a uniform rate of 40% GST.

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