Lotteries (Regulation)Act, 1998

No: 17 Dated: Jul, 07 1998

REGISTERED No.DL-33004/98
THE GAZETTE OF INDIA
EXTRAORDINARY
PART II-Section I
PUBLISHED AUTHORITY
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No.32) NEW DELHI, TUESDAY, JULY 7, 1998/ASADHA 16,1920
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Separate paging is given to this Part in other that it may be filed as a separate compilation
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MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS
New Delhi, the 7
(Legislative Department)
th
 July, 1998/Asadha 16, 1920 (Saka)
The following Act of Parliament received the assent of the President on the 7
 July,
1998, and is hereby published for general information:-
THE LOTTERIES (REGULATION) ACT, 1998
No. 17 OF 1998
[7
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:-
th
th
 July, 1998]
1. (1)  This Act may be called the Lotteries (Regulation) Act, 1998.                                 
Short title, ex-
   (2)  It extends to the whole of India.                       mencement.
  (3)  It shall be deemed to have come into force on the 2
nd
 day of October, 1997.
2.  In this Act, unless there is anything repugnant in the subject or context-                      
Definitions
(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;
          tent and com-
2
(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.
Prohibition of 3.  Save as otherwise provided in section 4, no State Government shall organize, conduct or
lotteries promote any lottery.
Conditions 4.  A State Government may organize, conduct or promote a lottery, subject to the
subject to following conditions namely:-
which lotteries
may be
(a)  prizes shall not be offered on any pre-announced number or on the basis of a
organized, etc. 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 bumber 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.
Prohibition of 5.  A State Government may, within the State, prohibit the sale of tickets of a lottery
sale of ticket in organized, conducted or promoted by every other State.
 a State
3
6.  The Central Government may, by   order  published in   the  Official     Gazette,      
Prohibition of
prohibit a lottery organized, conducted  or   promoted in  contravention of the  provisions  of         organization,
section 4 or where tickets of such lottery are sold in contravention of the provisions of section 5.          etc. of lottery.
7.  (1)  Where a lottery is organized, conducted or promoted after the date on  which this              Penalty
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 organized, 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.  The offence under this Act shall be cognizable and non-bailable.       
Offences to be
9.  (1)  Where an offence under this Act has been committed by a company, every person          non-bailable
who at the time the offence was committed was incharge of, and was responsible to, the company       offences by
for the conduct of the business of the company, as well as the company, shall be deemed   to    be        companies
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.
       cognizable and
Explanation – For the purposes of this section -
4
(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.
Power to give 10.  The Central government may give directions to the State Government as to carrying
directions into execution in the State of any of the provisions of this Act or of any rule or order made thereunder.
Power of Cen. 11.  (1)  The Central Government may, by notification in the Official Gazette, make rules to carry
tral Govern- out the provisions of this Act.
ment to make
rules.
(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.
Power of State 12. (1)  The State Government may, by notification in the Official Gazette, make rules to
Government to carry out the provisions of this Act.
Make rules.
(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 with 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 Legialature where it consists of two
Houses, or where such Legislature consists of one House, before that House.
Repeal and 13.  (1)  The Lotteries (Regulation) Ordiance, 1998, is hereby repealed.                                Ord. 6 of
saving    1998
(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.
RAGHBIR SINGH
Secy. to the Govt. of India