#THE LOTTERIES (REGULATION) ACT, 1998 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 
1.  Short title, extent and commencement. 
2.  Definitions. 
3.  Prohibition of lotteries. 
4.  Conditions subject to which lotteries may be organised, etc. 
5.  Prohibition of sale of ticket in a State. 
6.  Prohibition of organisation, etc., of lottery. 
7.  Penalty. 
8.  Offences to be cognizable and non-bailable. 
9.  Offences by companies. 
10.  Power to give directions. 
11.  Power of Central Government to make rules. 
12.  Power of State Government to make rules. 
13.  Repeal and saving. 



#THE LOTTERIES (REGULATION) ACT, 1998 

##ACT NO. 17 OF 1998 

[7th July, 1998.] 

An Act to regulate the lotteries and to provide for matters connected therewith and incidental 
  thereto. 

  BE it enacted by Parliament in the Forty-ninth Year of the Republic of India as follows:— 

1. **Short title, extent and commencement.**—(1) This Act may be called the Lotteries (Regulation) 
Act, 1998. 

(2) It extends to the whole of India. 

(3) It shall be deemed to have come into force on the 2nd day of October, 1997. 

2. **Definitions.**—In this Act, unless there is anything repugnant in the subject or context,— 

  (a) “bumper  draw  of  a  lottery”  means  a  special  draw  of  lottery  conducted  on  or  during  any 
festival  or  other  special  occasion  wherein  the  prize  money  offered  is  greater  than  the  prize  money 
offered in the case of other ordinary draw of lotteries; 

  (b) “lottery” means 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; 

  (c) “prescribed” means prescribed by rules made under this Act. 

3. **Prohibition of lotteries.**—Save  as  otherwise  provided  in  section  4,  no  State  Government  shall 
organise, conduct or promote any lottery. 

4. **Conditions subject to which lotteries may be organised, etc.**—A State Government may 
organise, conduct or promote a lottery, subject to the following conditions, namely:— 

  (a) prizes shall not be offered on any pre-announced number or on the basis of a single digit; 

  (b) the State Government shall print the lottery tickets bearing the imprint and logo of the State in 
such manner that the authenticity of the lottery ticket is ensured; 

  (c) the  State  Government  shall  sell  the  tickets  either  itself  or  through  distributors  or  selling 
agents; 

  (d) the proceeds of the sale of lottery tickets shall be credited into the public account of the State; 

  (e) the State Government itself shall conduct the draws of all the lotteries; 

  (f) the prize money unclaimed within such time as may be prescribed by the State Government or 
not otherwise distributed, shall become the property of that Government; 

  (g) the place of draw shall be located within the State concerned; 

  (h) no lottery shall have more than one draw in a week; 

  (i) the draws of all kinds of lotteries shall be conducted between such period of the day as may be 
prescribed by the State Government; 

  (j) the number of bumper draws of a lottery shall not be more than six in a calendar year; 

  (k) such other conditions as may be prescribed by the Central Government. 

5. **Prohibition of sale of ticket in a State.**—A State Government may, within the State, prohibit the 
sale of tickets of a lottery organised, conducted or promoted by every other State. 

6. **Prohibition of organisation, etc., of lottery.**—The Central Government may, by order published 
in  the  Official  Gazette,  prohibit  a  lottery  organised,  conducted  or  promoted  in  contravention  of  the 
provisions  of  section  4  or  where  tickets  of  such  lottery  are  sold  in  contravention  of  the  provisions  of 
section 5. 

7. **Penalty.**—(1) Where a lottery is organised, conducted or promoted after the date on which this Act 
receives the assent of the President, in contravention of the provisions of this Act, by any Department of 
the State Government, the Head of the Department shall be punishable with rigorous imprisonment for a 
term which may extend to two years or with fine or with both: 

  Provided that nothing contained in this section shall render such Head of the Department liable to any 
punishment if he proves that the contravention was committed without his knowledge or that he exercised 
all due diligence to prevent the commission of such contravention. 

(2) Notwithstanding anything contained in sub-section (1), where a contravention under this Act has 
been  committed  by  a  Department  of  Government  and  it  is  proved  that  the  contravention  has  been 
committed with the consent or connivance of, or is attributable to any neglect on the part of, any officer, 
other  than  the  Head  of  the  Department,  such  officer  shall  also  be  deemed  to  be  guilty  of  that 
contravention and shall be liable to be proceeded against and punished accordingly. 

(3) If  any  person  acts  as  an  agent  or  promoter  or  trader  in  any  lottery  organised,  conducted  or 
promoted in contravention of the provisions of this Act or sells, distributes or purchases the ticket of such 
lottery, he shall be punishable with rigorous imprisonment for a term which may extend to two years or 
with fine or with both. 

8. **Offences to be cognizable and non-bailable.**—The offence under this Act shall be cognizable and 
non-bailable. 

9. **Offences by companies.**—(1) Where an offence under this Act has been committed by a company, 
every  person  who  at  the  time  the  offence  was  committed  was  incharge  of,  and  was  responsible  to,  the 
company for the conduct of the business of the company, as well as the company, shall be deemed to be 
guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

  Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment if he proves that the offence was committed without his knowledge or that he had exercised 
all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of the offence and shall be liable to be proceeded against and punished accordingly. 

*Explanation.*—For the purposes of this section,— 

  (a) “company” means any body corporate and includes a firm or other association of individuals; 
and 

  (b) “director”, in relation to a firm, means a partner in the firm. 

10. **Power to give directions.**—The  Central  Government  may  give  directions  to  the  State 
Government as to carrying into execution in the State of any of the provisions of this Act or of any rule or 
order made thereunder. 

11. **Power of Central Government to make rules.**—(1) The Central Government may, by 
notification in the Official Gazette, make rules to carry out the provisions of this Act. 

(2) Every  rule  made  by  the  Central  Government  shall  be  laid,  as  soon  as  may  be  after  it  is  made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule. 

12. **Power of State Government to make rules.**—(1) The State Government may, by notification in 
the Official Gazette, make rules to carry out the provisions of this Act. 

(2) In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 
provide for all or any of the following matters, namely:— 

  (a) time to be fixed for claiming prize money under clause (f) of section 4; 

  (b) period to be fixed for draws of all lotteries under clause (i) of section 4; and 

  (c) any other matter which is required to be, or may be, prescribed. 

(3) Every rule made by the State Government under this section shall be laid, as soon as may be after 
it is made, before each House of the State Legislature where it consists of two Houses, or where such 
Legislature consists of one House, before that House. 

13. **Repeal and saving.**—(1) The Lotteries (Regulation) Ordinance, 1998 (Ord. 6 of 1998), is hereby 
repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be 
deemed to have been done or taken under the corresponding provisions of this Act.