Popular Lottery Games in India | State Lotteries, Rules, and Taxes
Why Lotteries Continue to Fascinate India
Lotteries hold a special place in India’s gaming culture. For decades, they have given ordinary people the thrill of chasing a dream with just a small ticket in hand. The excitement lies in the balance of hope and risk—while most tickets may not win, the possibility of a life-changing reward keeps millions engaged.
Over time, lotteries in India have evolved from traditional paper-based draws to online state-run systems and even international platforms available through the internet. Yet, one thing has remained constant: states that allow lotteries also channel a part of this revenue into public welfare programs such as healthcare, education, and infrastructure. This makes lotteries both a source of entertainment and a contributor to social development.
How Lotteries Work in India
What is Legally Considered a Lottery?
In India, a lottery is defined as a scheme where winners are chosen purely by chance. Players purchase tickets with printed or digitally generated numbers, and if those numbers match the official draw, the prize is awarded. Unlike games of skill, no strategy or technique is involved—making it a game of pure luck.
Who Can Run a Lottery?
Lotteries in India are strictly regulated. Only state governments are allowed to organize and conduct them. Private companies or individuals cannot launch their own lotteries. However, states may authorize licensed distributors or agents to sell tickets on their behalf.
At the same time, states also have the right to ban lotteries entirely within their borders. This means that while one state may run successful government lotteries, its neighboring state may prohibit them completely.
Paper Lotteries vs Online Lotteries
Traditionally, lotteries in India were sold in the form of printed paper tickets available at authorized counters or local vendors. These remain popular in many states even today.
With time, some states have introduced online lottery systems, where tickets are generated electronically at terminals connected to a central server. These are still state-run and fall under the legal definition of “online lotteries” in India.
It is important to note that this is different from international online lottery websites. While foreign platforms allow Indian users to participate in global jackpots, they do not fall under Indian lottery laws and may not be legally recognized in every state.
Is Lottery Legal in My State?
States Where Government Lotteries Operate
Lottery is a state subject in India, meaning each state decides whether to allow or ban it. As of now, the following states run their own government-approved lotteries:
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Arunachal Pradesh
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Assam
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Goa
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Kerala
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Madhya Pradesh
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Maharashtra
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Manipur
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Meghalaya
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Mizoram
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Nagaland
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Punjab
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Sikkim
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West Bengal
These states regularly conduct draws, often daily or weekly, and also host special bumper lotteries with large prize pools during festivals and public celebrations.
States That Ban Lotteries
Several Indian states do not permit lotteries at all. In these regions, both the sale and purchase of lottery tickets are prohibited. Residents are advised not to buy tickets from unauthorized sources or online platforms that claim to bypass state bans, as such activities may be illegal and unprotected by law.
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Popular State Lotteries & Famous Draws
Lotteries are not the same everywhere in India. Each state that allows them has its own draws, ticket formats, and prize structures. Among them, some lotteries have become household names because of their popularity and massive prize pools.
Kerala’s Weekly and Bumper Draws
Kerala is one of the pioneers of state lotteries in India and has been running them successfully for decades. The state organizes daily and weekly draws, giving players multiple chances to win small and mid-sized prizes.
Along with regular draws, Kerala also hosts “bumper lotteries” during festivals and major occasions such as Onam, Vishu, Christmas, and New Year.
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What is a bumper lottery?
A bumper is a special large-scale draw held a few times a year, offering much higher prize money compared to daily or weekly draws. -
Typical ticket price: Bumper tickets usually cost more (₹200–₹500 per ticket) because of the significantly larger jackpots.
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Prize example: The Onam Bumper is one of the biggest in India, with first prizes reaching up to ₹25 crore in recent years.
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Draw timing: Bumper draws are generally held once or twice during the festival season, while weekly draws take place at fixed times every day of the week.
Nagaland and West Bengal “Dear” Series
Another well-known lottery format is the “Dear” series, which is run by Nagaland and West Bengal (and distributed across other lottery-legal states).
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Daily draws: The Dear Morning, Dear Day, and Dear Evening series are conducted every day, giving consistent opportunities to participants.
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Ticket prices: These are usually more affordable, ranging between ₹6 to ₹30, making them accessible to a wider audience.
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Popularity: Due to their low entry price and regular schedule, the “Dear” lotteries attract a huge number of players across India.
Online Lottery in India: What’s Actually Legal
The term “online lottery” often causes confusion in India.
Online Lottery Under Indian Rules
Under the Lotteries (Regulation) Act, 1998 and its rules, “online lottery” refers to tickets generated through computerized terminals linked to a central server. These systems are state-run and authorized by the government. In other words, it is still a government lottery, just sold digitally instead of as a paper ticket.
International Lottery Websites
Many websites claim to sell tickets for international jackpots like Powerball or EuroMillions. These platforms are not recognized under Indian lottery laws. While they may allow Indian players to participate, they operate in a legal grey zone and winnings may not always be enforceable under Indian jurisdiction.
Supreme Court Stance on State Powers
The Supreme Court of India has upheld the right of states to regulate or completely ban lotteries. This means that if a state government prohibits lottery sales—whether paper or online—then even authorized online lotteries from other states cannot be legally sold there.
What’s Allowed, Grey Areas, and Pitfalls
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Allowed: State-run paper and online lotteries within states that permit them.
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Grey areas: International lottery websites accessible online but not backed by Indian law.
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Pitfalls: Many scams operate under the name of “online lottery.” Players should avoid WhatsApp messages, fake websites, or emails claiming lottery winnings. Always buy tickets from official state-authorized outlets or websites only.
Money Matters: Taxes, GST, and Payouts
Winning a lottery in India comes with financial responsibilities. Both taxation and ticket pricing are strictly regulated.
Tax on Winnings (TDS and Final Tax)
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All lottery winnings are taxed at a flat rate of 30% under the Income Tax Act.
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This tax is deducted at source (TDS) before the prize money is paid out.
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On top of this, applicable cess and surcharge may be added.
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Lottery income is treated separately from regular income, meaning you cannot claim deductions like under Section 80C.
GST on Ticket Sales
Since March 2020, the Goods and Services Tax (GST) on lottery tickets is fixed at 28%. This is applied to the face value of the ticket, which directly impacts the price that players pay. For example, if a ticket is priced at ₹100, a large part of that already includes GST.
Claim Windows and Documents
Lottery winners must claim their prizes within the time frame set by the state government.
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Kerala Example: Winners usually have 30 days to claim. They must present the original ticket, identity proof, and fill out claim forms. Larger prizes need to be claimed at the Directorate of State Lotteries or designated banks.
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Nagaland Example: Winners are required to submit the ticket with two passport-sized photographs, ID proof, and bank details to the state lottery office.
Failure to claim within the deadline can result in losing the prize money, so timely action is crucial.
Where the Money Goes: The Social Impact of Lotteries
Lotteries in India are not just about luck and entertainment. In states where they are allowed, a significant part of the revenue collected is earmarked for public welfare programs.
How States Use Lottery Funds
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Kerala’s Karunya Benevolent Fund (KBF): One of the best examples, where profits from lottery sales are used to provide financial assistance to patients suffering from serious illnesses. Thousands of low-income families have benefited from this initiative.
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Healthcare and Education: In several states, funds are directed towards building hospitals, improving schools, and financing health schemes for the underprivileged.
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Infrastructure Development: Roads, housing schemes, and other public projects also receive a share of the revenue.
Recent Budget Allocations
Kerala, for instance, regularly sets aside hundreds of crores from its annual budget to support healthcare through lottery earnings. Other states such as Nagaland and Sikkim also invest portions of their lottery revenue into education and social projects, ensuring the money goes back into improving living standards.
Play Safe: Responsible Gaming
Lotteries may be fun, but it is important to treat them responsibly.
Age Limits & Warning Signs
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Only adults (18 years and above) are legally allowed to purchase lottery tickets in India.
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Spending beyond your means, chasing losses, or buying tickets compulsively are warning signs of unhealthy gaming habits.
Helplines and Support in India
If gambling habits begin to affect daily life, help is available. The Tele-MANAS mental health helpline (14416 or 1-800-891-4416) provides free support and counseling across India.
Avoiding Scams
Fraudsters often use SMS, WhatsApp, or email to trick people with fake lottery win claims. Common red flags include:
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Messages saying “You have won a huge jackpot” without buying a ticket.
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Requests for “processing fees” or “advance tax” to release your prize.
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Unofficial links or phone numbers pretending to be government officials.
Always remember: Government lotteries never inform winners through WhatsApp or SMS. Results are only published on the official state lottery websites and gazettes.
Buyer’s Checklist: Spot a Legitimate Lottery
Before buying a ticket, use this quick checklist to avoid fraud.
Red Flags for Fake Sites or Messages
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Websites without a state government domain or authorization.
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Social media pages claiming “guaranteed wins.”
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Sellers asking for payments through personal bank accounts or wallets.
How to Verify Results & Claims
- Always check winning numbers on the official state lottery website or the state gazette.
- For bumper draws like Kerala’s Onam or Vishu, cross-check results with newspapers that publish official notices.
- Never rely on screenshots, WhatsApp forwards, or private messages as proof of winning.
FAQs
Can I Buy Tickets from Another State?
No, you can only buy tickets in states where lotteries are legal and authorized. If your state bans lotteries, purchasing from another state or online is not legally valid.
Can I Buy “International” Lottery Tickets?
International lottery websites are not covered under Indian law. While they may be accessible online, they exist in a grey area and winnings may not be enforceable in India. It is always safer to stick to state-run lotteries.
What Happens if I Lose My Paper Ticket?
The physical ticket is mandatory to claim a prize. If it is lost or damaged, the claim becomes invalid. Always keep your ticket safe and in good condition until the draw results are announced and verified.
Do I Pay Tax Again After TDS?
No. When you win, the prize money is subject to 30% TDS (Tax Deducted at Source). This covers the major portion of your tax liability. However, surcharge and cess may still apply, and the exact amount will be adjusted when you file your income tax return.
Can I Transfer My Lottery Winnings to Someone Else?
Lottery prizes can only be claimed by the person whose name and documents are submitted during the claim process. While the winner may choose to gift or transfer the money after receiving it, the claim itself cannot be transferred to another person.
How Long Do I Have to Claim a Prize?
Each state sets its own claim period, but most require winners to claim within 30 to 90 days from the draw date. Missing this deadline usually results in losing the prize, so it is important to check the claim instructions carefully.
Are Online Scanned Copies of Tickets Valid?
No. Only the original ticket issued by the authorized state distributor is valid for claiming a prize. Scanned copies, photocopies, or digital screenshots cannot be used to claim winnings.
