Registration and fee stucture to start a draw scheme

678 votes

Sir
Draw scheme or Lottery system is not permitted by law in India instead you can get chit fund registered s draw scheme as lottery system is illegal in India. Chit funds are registered in the respective state where you want to operate.

Thank You

Advocate Tarundeep Singh LawRato

646 votes

Gambling is a state subject and is allowed only in states like Mizoram, Sikkim and Goa.
For the rest of India gambling is not allowed and is a criminal offence as per the laws and the judgment passed by the Hon'ble Supreme Court of India.
Even in the states mentioned above where gambling is allowed it is completely been regulated by the government only.

Advocate Pulkit Prakash LawRato

544 votes

A draw scheme is legal as long as it does not fall within the ambit of lottery and provided such lottery is being held.in a state where it is illegal.

In case your draw scheme calls for a person to purchase a product and the lucky draw is a bonus to the purchase, it would not fall within the ambit of lottery and would thus be legal. However, if the money spent by a person to enter the draw does not provide such person with a product or service in return, it would be subject to lottery laws of the relevant state where the draw is taking place.

Assuming.you fall within the former of the above mentioned two scenarios you would not need any specific registration or license for the draw scheme as it would fall within the ambit of sales promotion.

As regards the second scenario, the registration and/or license required would depend from state to state where lottery is legal.

Hope the above is helpful.

Advocate Tushar A John LawRato