(1) A private lottery shall be deemed to be an unlawful lottery unless the promoter thereof has obtained a licence in respect of such lottery.
(2) The following conditions shall be observed by the promoter in connection with the promotion and conduct of such lottery, namely :-
(a) the whole proceeds, after deducting only expenses incurred for printing and stationery, shall be devoted to the provision of prizes for purchasers of tickets or chances, or, in the case of a lottery promoted for the members of a society, shall be devoted either to the provision of prizes as aforesaid or to purposes which are purposes of the society or, as to part, to the provision of prizes as aforesaid and, as to the remainder, to such purposes as aforesaid;
(b) there shall not be exhibited, published or distributed any written notice or advertisement of the lottery other than-
(i) a notice thereof exhibited on the premises of the society for whose members it is promoted or, as the case may be, on the premises on which the persons for whom it is promoted work or reside, and
(ii) such announcement or advertisement thereof as is contained in the tickets, Licensed entertainment lotteries not unlawful.
Licensed private Lotteries not unlawful.
1958 : Bom. LXXXII] Gujarat Lotteries (Control and Tax) and Prize Competitions (Tax) Act 1958 7 of 12 if any;
(c) the price of every ticket or chance shall be the same and the price of any ticket shall be stated on the ticket;
(d) every ticket shall bear upon the face of it the name and address of each of the promoters and a statement of the persons to whom the sale of tickets or chances by the promoters is restricted, and a statement that no prize won in the lottery shall be paid or delivered by the promoters to any person other than the person to whom the winning ticket or chance was sold by them, and no prize shall be paid or delivered except in accordance with that statement;
(e) no ticket or chance shall be issued or allotted by the promoters except by way of sale and upon receipt of the full price thereof, and no money or valuable thing so received by a promoter shall in any circumstances be returned; and
(f) no tickets in the lottery shall be sent through the post.
(3) If any of the conditions specified in sub-section (2) is broken, each of the promoters of the lottery, and where the person by whom the condition is broken is not one of the promoters, that person also, shall, on conviction, be punishable—
(a) for the first offence with fine which may extend to one thousand rupees,
(b) for the second offence with fine which may extend to two thousand rupees, and
(c) for any subsequent offence with imprisonment for a term which may extend to three months or with fine which may extend to five thousand rupees or with both:
Provided that in any proceeding under this section, it shall be a defence for a person charged only by reason of his being a promoter of the lottery to prove that the offence was committed without his knowledge.
Explanation.-For the purposes of this section-
(a) the expression "private lottery" means a lottery in the State which is promoted for, and in which the sale of tickets or chances by the promoters is confined to, either-
(i) members of one society established and conducted for purposes not connected with gaming, wagering or lotteries, or
(ii) persons all of whom work on the same premises, or
(iii) persons all of whom reside on the same premises, and which is promoted by persons each of whom is a person to whom under the foregoing provisions tickets or chances may be sold by the promoters and, in the case of a lottery promoted for the members of a society, is a person authorised in writing by the governing body of the society to promote the lottery ; and
(b) the expression "society" includes a club, institution, organisation or other association of persons by whatever name called, and each local or affiliated branch or section of as society shall be regarded as a separate and distinct society.
7. Every licence granted under this Act in respect of a lottery shall be granted by the Collector on payment of such fees and subject to such conditions and shall be in such form as may be prescribed.
8. Notwithstanding anything contained in this Act or any rules made thereunder, it shall be lawful for the State Government by general or special order to –
(a) prohibit the grant of licences in respect of a lottery or class of lotteries throughout the State or in any area ;
(b) prescribe the maximum number of licences which may be granted in any area ;
Licences.
Power of State Government to issue orders pertaining to licences.
[1958 : Bom. LXXXII Gujarat Lotteries (Control and Tax) and Prize Competitions (Tax) Act 1958
(c) direct that no licences specified in such order shall be granted without the previous approval of the State Government ;
(d) issue such other instructions in any matter pertaining to the grant or otherwise of licences under this Act as the State Government may deem proper.
9. The Collector may suspend or cancel a licence granted under this Act in respect of a lottery-
(1) if there is any breach of any of the conditions subject to which the licence is granted ; or
(2) if the holder of such licence contravenes any of the conditions specified in section 5 or 6 ;
or
(3) if any tax payable under section 10 is not duly paid by the promoter ; or
(4) if the holder of such licence contravenes any of the provisions of section 14 ; or
(5) for any other reason, for which the suspension or cancellation of the licence is, in the opinion of the State Government, necessary in the public interest.