The sale of and dealing in paper based and online lotteries in India is governed by the Lotteries (Regulation) Act, 1998 of India (PDF) and the accompanied Lotteries Regulation Rules 2010 of India (PDF). The provisions of the Act and Rules must be adhered to in order to engage in, sale and purchase of real world and online lotteries in India. If the provisions of the Act and Rules are violated, criminal prosecution and imprisonment can also be there.
Further, as per Act and Rules one State is well within its right to deny the dealing and organisation of a lottery game/event by another organising State if the latter do not comply with the requirements of the Act and Rules.
In one such incidence reported by New Indian Express, Future Gaming Solutions India Private Ltd sought permission for sale of Nagaland lotteries in the State of Kerala. However, the State of Kerala refused to grant such permission citing the dubious history of violating Lottery Regulation Act and Rules in the sale of Sikkim State lotteries in Kerala by Future Gaming in the past. Besides, the Government of Nagaland has not informed the Government of Kerala about its intention to sell its lottery tickets in the State.
Santiago Martin, the prime accused in lottery fraud cases, is a director of Future Gaming Solutions. The Kerala State produced a notice before the Kerala High Court on Tuesday in this regard. The Kerala High Court disposed of a petition by Santiago Martin seeking a directive to the State Government to consider the application for the registration of promoter for the sale of Nagaland lotteries in the State.
As per the notice “It was revealed in an inquiry conducted on the sale of Sikkim lotteries that Future Gaming Solutions company had illegally printed Sikkim lotteries worth `60.65 crore in unauthorised printing presses and sold it in the State through Megha Distributors from April, 2010, to August 31, 2010,”.
“The present application for sale of Nagaland State lotteries is yet another attempt from the company to amass wealth illegally by cheating the public,” the notice said. It said the CBI had taken up 32 cases in connection with violation of the Lottery Regulation Act and investigation is going on.
The violation of the Act had wreaked havoc and led to public fury, which was felt in the State Assembly also. It is pointed out that the company did not furnish details of persons/firms involved in the sale of Nagaland lotteries. “This is a clear violation of the statutory directions issued by the Central Government,” the notice stated.
The agreement by the company with Nagaland Government was void. “If the agency sells lotteries based on the illegal and ambiguous agreement, it gives room for the distributor to play fraud as is evident in the case of Sikkim and Bhutan lotteries,” the notice stated.
Source: P4LO Blog.