Is Lottery Legal in India? State-wise Rules & Taxes

If you’ve ever asked, “Is lottery legal in India?” the short answer is yes—but only when a State Government runs it under conditions set by law. Private lotteries are banned; state lotteries are permitted and tightly regulated.

In 2025, there are also major tax changes: GST at 40% on lotteries (as part of GST 2.0 reforms) and TDS at 30% on winnings continue to shape your net payout and compliance. This guide breaks down the law, state-wise status, taxes, and how to check if your state allows tickets, in plain English.

1) The legal backbone (in one minute)

• Who can run lotteries?
  Only State Governments can organize and promote lotteries, subject to conditions in the Lotteries (Regulation) Act, 1998 (draw frequency, proceeds credited to public accounts, etc.). Private lotteries are banned; recent legal commentary also notes prohibition of unlicensed private lotteries under the newer Bharatiya Nyaya Sanhita, 2023.
• What about “online lottery”?
  Government lotteries in India are primarily paper tickets sold offline through authorized agents (for example, Nagaland specifies offline only). Third-party “online” lottery portals offering Indian state draws typically do not have state authorization and can expose you to fraud and claim rejection. Always verify the issuing State Lottery Directorate.

2) State-wise picture (2025 snapshot)

Lottery policy is a state subject. Availability changes as states suspend/restart schemes. Two credible snapshots:

• A Lok Sabha reply (Mar 2023) listed 9 states running lotteries: Arunachal Pradesh, Goa, Kerala, Maharashtra, Mizoram, Nagaland, Punjab, Sikkim, West Bengal.
• A national daily (Mar 2024) counted 13 states: the above plus Assam, Manipur, Meghalaya, Madhya Pradesh. (Media tallies sometimes include states that notified but weren’t continuously drawing.)

2025 developments:

• GST 2.0 introduced a 40% GST for “actionable claims” like lottery, betting, casinos; valuation rules for lottery have been aligned accordingly. States are adjusting prize structures/agent commissions to absorb the tax shift.
• Himachal Pradesh announced a return to state lottery after 26 years (policy intent and expected revenue shared in cabinet briefings). Watch for official notifications before purchase.

How to confirm your state: Search for “[Your State] Directorate of State Lotteries” and look for current notifications/draw schedules/PDF results on the .gov.in/state.gov.in domain. Avoid third-party PDFs.

Quick state-wise grid (how to use it)

• Active/announced below are drawn from government and mainstream sources. Policies can change—verify on your state’s official site before buying tickets.

*This grid summarizes reporting; always verify current status on the official state site.

3) Taxes & your net payout (2025)

• TDS @ 30% on winnings over ₹10,000 (Section 194B). The lottery organizer deducts withholding tax before paying you. Plan cash flow accordingly.
• Flat income-tax @ 30% under Section 115BB; no slab benefits or Chapter VI-A deductions against this income.
• GST @ 40% applies to lottery supplies (de-merit rate under GST 2.0) from 22 Sep 2025, with revised valuation for tickets (deemed valuation 100/140). This affects ticket pricing, prize mix, and agent commissions but not the TDS rate on your winnings.

Finance tip: Always calculate your net proceeds = gross prize − TDS. Keep Form 16A/TDS certificate for ITR reconciliation.

4) Buying tickets safely (and legally)

• Buy only state-run tickets from authorized sellers; ask for a valid receipt/stamp.
• Avoid portals claiming “online state lottery” unless the state itself runs an official online system (most do not).
• Keep the ticket untampered, sign on the back, and store photos for record.

5) Claiming prizes — the compliance checklist

• Claim window: Usually 30 days from draw (varies by state—check the PDF).
• Documents: Original ticket, PAN, govt ID, photos, bank details (cheque/passbook), and claim form.
• Routing: Smaller prizes often via agents/district offices; higher prizes at the Directorate.
• Tax: TDS 30% deducted; include the income under “Income from Other Sources” in your ITR with the TDS details. ClearTax

6) FAQs — Legal & Finance

1) Is lottery legal in India in 2025?
Yes, state-run lotteries are legal under the Lotteries (Regulation) Act, 1998. Private/unlicensed lotteries are prohibited.

2) Can I buy government lottery tickets online?
Typically no. Most active states sell paper tickets offline through authorized agents (e.g., Nagaland). Be cautious of unofficial online portals.

3) Which states sell lottery tickets now?
Government data in 2023 listed 9 states; 2024 media counted 13; 2025 saw Himachal Pradesh announce a return. Status changes—verify on your state’s official site before purchase.

4) What taxes apply to winners?
TDS 30% is deducted on eligible winnings (Sec. 194B), and lottery income is taxed at 30% flat (Sec. 115BB).

5) What changed in 2025 for GST?
India adopted GST 2.0 with a 40% de-merit rate for lotteries/casinos/gambling and aligned valuation rules for lottery supplies.

6) Do I get any deductions (80C) or basic exemption?
No. Lottery income is taxed at a flat rate, and standard deductions/exemptions do not apply to this income.

Conclusion

Lotteries in India are legal only when state-run. For players, 2025 is about compliance and cash-flow planning: the GST 40% environment influences ticket economics and prize structures, while your net payout still hinges on TDS 30% and timely claims with PAN/KYC. If your state runs a lottery, always verify on the official site, buy only from authorized sellers, keep a clean paper trail, and budget for taxes before you spend a rupee.

Kerala Lottery Old Results Archive – Check Past Winning Numbers & PDFs