Lottery Games Online Free In India
Author - Associate Aliza Abdin
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This article would deal with the explanation of lucky draw and lottery and solve the most common question-Is lottery legal in India?
What is a Lucky Draw?
A typical kind of lucky draw is a type of game usually played in carnivals where contestants try their luck and pick out a gift from a container without looking. The gifts range from very expensive ones to cheaper smaller ones. It is also known as lucky dip. Nowadays, lucky draws are mostly all about spinning wheels, etc.
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Lucky draws also include raffles in which a person buys a cheap raffle ticket and try their luck at winning big prizes like cars, bikes, mobile phones, refrigerators, etc. But the question is “Is raffle legal in India?”. Raffles and lucky draws are most common in school fetes, carnivals, festivals, etc.
What is a Lottery?
Lottery is a type of gambling in which a person buys a lottery ticket bearing a specific number for a small amount. When all tickets had been sold out a number is drawn at random, for a prize. The prizes usually include big cash prizes for the top three contestants. Many countries have banned lotteries in an attempt to stop gambling and bankruptcy in the poor section of the country; while other countries organize national and state lotteries by following certain rules like licensed vendors to sell lottery tickets and a ban on selling to children. Lotteries were very popular worldwide during the 90s and were a source of income but since the start of the 21st century they have been made illegal in most countries.
There are many kinds of lotteries like single digit or double digit, a 50-50 draw where the lottery organizers give half the amount earned as prize money. The lotteries allow governments to make revenue without generating taxes.
Is Lotteries legal in India ?
So a big question to be answered is- is lottery legal in India? Lottery in India is governed by the Lotteries Regulation Act, 1998, according to which the states are allowed to conduct a lottery following 11 conditions. A few years ago, the Supreme Court of India permitted all state governments to ban or allow lottery in India accordingly and refused to make the sale of lottery a fundamental right. This law however does not allow the sale of one digit lottery.
As of 2019 lottery in India doesn’t have all India ban but all states have banned lotteries except for the 13 states that include Kerala, Goa, Maharashtra, Madhya Pradesh, Punjab, West Bengal, Assam, Arunachal Pradesh, Meghalaya, Manipur, Sikkim, Nagaland and Mizoram. Lotteries are very popular in these states and the social activists are continuously trying to raise awareness about how the people are getting addicted to gambling.
But another concept to be added here is the legal online lottery in India. Lotto India is the legal online lottery in India for the players and has more jackpots than the others.
Is the Ban Effective?
As all bans, the bans on lotteries are also not very successful as most trade is carried out underground by illegal means and thus the trade still continues but the government does not get revenues. Some of the lotteries function online that give small prizes for single digit lotteries daily and big prizes for weekly draws. In spite of being banned, lotteries have not disappeared completely and are very popular for earning money illegally. The online version of lotteries does not require the players to disclose their identities and thus they can participate anonymously and avoid getting caught.
Why is Lucky Draw Legal in India whereas Lottery is not?
So to answer this question as to why is lucky draw legal in India recently the NITI Aayog clarified that the Lotteries Regulation Act, 1998 Section 2(b) states that the lucky draws which are conducted to promote digital transactions do not come under the category of lottery and are thus are not banned. The 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’
The Supreme Court permits state governments to ban lottery in India because it is a form of gambling and it makes the poorer section of the society an addict and bankrupt. However this is not the case in lucky draws because the lucky draw scheme which is included in the Lotteries Regulation Act, 1998 has to stay within the given parameters, and most lucky draws which are organized by the governments do not require a ticket purchase and the participants can directly come and try their luck, and thus this does not account to gambling.Online lucky draws require the payment of a small amount which is usually collected by companies like Mastercard or Rupay, or by other banks used for payment and hence the government on their side does not charge anything and offer prizes gratuitously. Therefore it is very clear that a lucky draw is very different from a lottery, and this would not fall under the category of gambling. So this answers the question if lottery is legal in India.
The Section 2(1)(r) Consumer Protection Act, 1986 also prohibits any kind of unfair trade practice which includes “conducting any lottery or contests whether skill or chance to promote the sale, use or supply of any goods or for the provision of any service.” The NITI Aayog has clarified this too as offering lucky draws to promote digital transactions does not include any service and the customer does not pay anything for getting the reward. These kinds of lucky draws usually include small cash back offers for payment by digital means.
And thus the lucky draw scheme stays out of the ambit of consumer protection laws as well as the Lottery Regulation Act.
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PlayWin – The Rise & Fall of Indias First Online Lottery
Playwin Lottery is known as the original Indian online lottery. Founded in November 2001 it was the first and only government online lottery sanctioned by the Sikkim government.
Even though it was a privately operated by Essel Group through the PAN India Network it had the right to do so thanks to the permission of the Sikkim State.
The venture was very quickly a commercial success.
Indians in states where state lottery games were legal could easily play any of the many games provided by Playwin.
Sadly, the operation ceased to exist after the company behind the lottery had liquidity issues.
During its 18 year-long run it created countless crorepatis and was a role model for other government lotteries when it comes to innovation.
India Leading Lottery Innovation
With its launch in 2001 Playwin was not only the first online lottery in India but one of the first lottery sites in the whole world.
TheLotter which is commonly known as one of the first online lottery sites in the world was started 1 year after Playwin!
Of the sites listed here at Online Lotteries India, only PlayHugeLottos is older which was started in 1998.
As such India was long the leading country of lottery innovation with Playwin creating its own lotto game structure with independent draws.
The site itself was revolutionizing since there was nothing like it at the time of its start. Playwin lottery is and will always be proof of the strength of Indian entrepreneurship.
The Crorepati Making Lotto Games
Playwin offered a total of 13 games throughout the years.
- Friday Easy Lotto
- Lucky 3
- Max 3
- Keno
- Triple Ticket
- E-Play
- Joker
- Joker 5
- Jaldi 5
- Jaldi 5 Double +
- Thunderball
- Thursday Super Lotto
- Saturday Super Lotto
Super Lotto was known as one of the most popular games since both have given players the biggest jackpots.
Each of the games had a unique structure with different payout schemes.
Playwin lottery winners got jackpots in the size of several crore repeatedly creating a small craze throughout the country.
By 2014 the Playwin lottery had created more than 94 crorepatis and 5000 lakhpatis.
Corruption and Foul Play
Even though business was booming for the online lottery there were several mishaps that changed the fate of the company.
PAN India which was the main organizer of Playwin was part of one of Indias biggest lottery scams.
PAN India was one of four private companies that had been outed for their involvement in the Mizoram lottery scandal which has been said to have led to tax losses of Rs. 11, 808.8 crore between 2012 to 2015.
Furthermore, since Playwin was a government-sanctioned lotto and not an official government lottery it adhered to the higher GST rate of 28% compared to 12%. Even though it was later changed to a uniform rate of 28% it was already too late.
By the end of 2019, its debts had caught up with the Essel Group and PAN India which led them to have to shut down their popular lotto.
The last Playwin draw was on the 1st of October 2019.
The End of Indian Online Lottery
From being one of the most innovative lotteries in the world to crashing due to scandals and expenses running haywire, Playwin wrote an important part of Indian lottery history.
As of yet, there are no government-sanctioned online lotteries and as such Playwin was the beginning and end of a truly Indian online lotto.
I am hoping to see the Indian government to wake up and see the potential of online lottos but until then we are fortunate enough to be able to enjoy international lottery sites.
I have listed several safe and trusted lottery websites that you can freely enjoy from India.
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Enjoy, good luck and hopefully, we will see new Indian lottery sites soon!