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Is it legal to start an online lottery website in India?
20-Mar-2023 (In Startup Law)
I want to start an online lottery website in India. I live in Rajasthan and I want to know the the current laws on online lottery in India and what is the process to get permission from Government in order to start such website. Thanks in advance.
lottery laws in Rajasthan puts embargo on lottery, if your really want something to make your idea executed than you can opt for online chit fund scheme which can help you and others in savings and it is also an exemption in tax
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Adv. Divesh Sharma
Jaipur | 100+ Answers
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online lottery illegal by virtue of Rajasrthan Prohibition of Gambling Ordinance.
Online lottery in India is not legal completely, but in some states of India its legal to play.
Land-based lotteries- Allow in 12 states, West Bengal, Maharashtra, Kerala, Punjab, Madhya Pradesh, Sikkim, Goa, Assam, Arunachal Pradesh, Meghalaya, Manipur and Nagaland.
Recently the Indian government has clarified about the Foreign Direct Investment (FDI) in E-Commerce Sector of India. As per the “Consolidated FDI Policy Circular 2015” (pdf) (FDI Policy), FDI is prohibited in lottery business including Government/private lottery, online lotteries, etc and gambling and betting including casinos etc. As far as the intentions of central government are concerned, it is not in favour of allowing FDI in lotteries, gambling and betting. Further, central government also refused to give its opinion on the legality or illegality of online games and online gambling in India. As a result the online gaming and online gambling entrepreneurs of India are now required to comply with multiple laws of India, both central as well as state wise. For reasons unknown, most of the gaming and gambling entrepreneurs of India are not complying with techno legal requirements of different laws of India.
Online lottery in India is not legal completely, but in some states of India its legal to play.
Land-based lotteries- Allow in 12 states, West Bengal, Maharashtra, Kerala, Punjab, Madhya Pradesh, Sikkim, Goa, Assam, Arunachal Pradesh, Meghalaya, Manipur and Nagaland.
Recently the Indian government has clarified about the Foreign Direct Investment (FDI) in E-Commerce Sector of India. As per the “Consolidated FDI Policy Circular 2015” (pdf) (FDI Policy), FDI is prohibited in lottery business including Government/private lottery, online lotteries, etc and gambling and betting including casinos etc. As far as the intentions of central government are concerned, it is not in favour of allowing FDI in lotteries, gambling and betting. Further, central government also refused to give its opinion on the legality or illegality of online games and online gambling in India. As a result the online gaming and online gambling entrepreneurs of India are now required to comply with multiple laws of India, both central as well as state wise. For reasons unknown, most of the gaming and gambling entrepreneurs of India are not complying with techno legal requirements of different laws of India.
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