Kerala Lottery moves to other states; government makes amendments
Alappuzha: The Kerala government has issued a notification amending the Kerala Paper Lottery Rules of 2005, making the sale of Kerala lotteries lawful in other states and Union Territories. The government will decide the states and appoint distribution agents.
The amendment permits lottery sales in states and Union Territories where it is legally allowed. Agents must ensure that tickets are not sold in prohibited regions. The amendment also includes provisions for agents to receive tickets on credit based on a bank guarantee.
Agents can take tickets worth a minimum of ₹50,000 and up to ₹50 lakh from lottery offices. Up to 90% of the total amount can be availed on credit, but the full payment must be settled within a stipulated period. Delayed payments will attract an 18% interest rate, recoverable from the bank guarantee.
Previously, selling Kerala lotteries outside the state was not permitted, though illegal sales were rampant. This amendment is aimed at tapping into the market potential in other states. The revised rules include provisions favoring major agents.
Impact on local agents
To avoid adverse effects on small-scale sellers within Kerala, ticket printing may need to increase considerably. Apart from this, the prize structure will require modifications. Consequently, the timeline for implementing the changes remains uncertain.
Key provisions in the amendment
- Apart from individuals, partnerships and corporate entities can also become agents.
- Conducting illegal lottery sales within the state will attract imprisonment of up to two years and fines.
- Selling tickets or their numbers in any form, online or via social media, will result in penalties.
- Tickets must not be sold to the public below or above their face value.
- Lottery tickets cannot be used in connection with the sale of goods or services.
- Agents will receive tickets only from the registration district. They may be allowed to purchase from other districts subject to conditions.
- If non-agents, agencies, or unauthorised sellers are found selling tickets, their tickets will be confiscated, and prizes will not be awarded for such tickets.
- Draws must be conducted under the supervision of a panel with at least three members.
- Any Kerala resident can become an agent for a term of two years. Renewal applications must be submitted three months before the expiry of the term.
Agreements with lottery-authorized states are necessary
States like Assam, Arunachal Pradesh, West Bengal, Meghalaya, Nagaland, Mizoram, Goa, Maharashtra, Manipur, Madhya Pradesh, Punjab, and Sikkim are reportedly authorised for lottery operations. Agreements with these state governments will be required before commencing sales.
Amendments favour monopolies
The new amendments seem to favour monopolies and corporate entities. Even now, small-scale distributors in Kerala struggle to access enough lottery tickets. Expanding sales to other states may open the door for big players to enter Kerala, potentially intensifying competition. "These amendments are designed to assist monopolies and corporates. Local distributors are already facing challenges, and the situation may worsen with this expansion," said Lajeev Vijayan, Working President, Kerala Lottery Agents and Sellers Association.