Mysuru, Karnataka: The illegal sale of Kerala lottery tickets is on the rise in Karnataka. Although lotteries are completely banned in the state, tickets from neighbouring Kerala are being smuggled in and sold widely in border villages. The highest activity has been reported in Chamarajanagar district, particularly in Gundalpet, Chamarajanagar, and Kollegal.

Sales are mostly concentrated in villages with a large number of unorganised workers, including many Malayalis. The Karnataka government banned lottery sales to protect vulnerable people from financial exploitation, but this has created strong demand for Kerala lotteries in these areas. Interstate lottery sales have been strictly prohibited in Karnataka since 2004.

Lottery tickets are often sold at up to five times their official price. Kerala tickets, which agents distribute starting at Rs 250, generate significant profits for those involved. Under the Karnataka Lottery Prohibition Act, police registered 78 cases in 2023. This fell to 54 in 2024, while 64 cases had been recorded until November 2025, according to Karnataka Police figures.