(1) A State Government may organise a paper lottery or online lottery or both subject to the conditions specified in the Act and these rules.
(2) The State Government may organise a lottery or lotteries, if it so decides, by issuing a notification in its Official Gazette, outlining the purpose, scope.
limitation and methods thereof.
(3) The Organising State shall announce in advance, by way of a notification in the Official Gazette, the following information about every lottery, namely:-
(a) the name of the lottery or lottery scheme;
(b) prices of the lottery ticket;
(c) total number of tickets printed in case of paper lottery;
(d) gross value of the tickets printed;
(e) name or names of the distributors or selling agents with their addresses and contact information;
(f) prize structure;
(g) the amount offered as prize money;
(h) periodicity of the draw:
(i) the place where the draw shall be conducted; and
(j) the procedure for drawing the prize winning tickets or prize-winners.
(4) In case an Organising State decides to organise more than one lottery, the procedure as provided in sub-rule(3) shall be followed for each lottery.
(5) The paper lottery tickets and the stationery on which the online lottery tickets are issued shall be printed by the Organising State at a Government Press or any other high security press included in the panel of the Reserve Bank of India or the Indian Banks' Association, Mumbai.
(6) The number of lottery draws except bumper draw by an Organising State, from all the lottery schemes put together, shall not be more than twenty four per day.
(7) No draws of a lottery shall be conducted on any National Holiday.
(8) The minimum sale price of a ticket shall not be less than two rupees.
(9) The first prize in any lottery scheme shall not be less than ten thousand rupees.
(10) The Organising State shall charge a minimum amount of five lakh rupees per draw for bumper draw of lottery and, for all other forms of lottery, a minimum amount of ten thousand rupees per draw.
(11) The State Government under whose jurisdiction the lottery tickets are being sold shall be entitled to charge a minimum amount of two thousand rupees per draw from the Organising State but the maximum amount chargeable shall not be more than what is being charged by the State Government from its own lotteries.
(12) The Organising State shall publish the result of the draws in at least one national and two state level newspapers out of which one shall be in English as well as in its Official Gazette.
(13) The Organising State shall designate an officer, not below the rank of Secretary to the Government of the State, as the designated authority, who shall be responsible for organising the lottery in the State.
(14) An Organising State shall not offer a prize on a lottery ticket or in an online lottery on the basis of single, double or triple digit in any form or combination.
(15) In cases where an Organising State appoints or authorizes distributors or selling agents, it shall be the responsibility of the Organising State to ensure that the said distributors or selling agents act in conformity with the provisions of the Act and these rules.
(16) The Organising State shall keep records of the tickets printed, tickets issued for sale, tickets sold, tickets which remain unsold at the time of the draw, and the prize winning tickets along with the amount of prize or prizes in respect of each draw, in the manner prescribed by the Organising State.
(17) The Organising State shall ensure that proceeds of the sale of lottery tickets, as received from the distributors or selling agents or any other source.
are deposited in the Public Ledger Account or in the Consolidated Fund of the Organising State.
(18) It shall be the responsibility of the Organising State to ensure that income tax on prizes, wherever applicable, is deducted at source and that the prize money is credited to the bank account(s) of the prize winner(s).
(19) Every Organising State shall conduct an annual financial and systems audit of the various lottery schemes organised by it including online lottery.
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(20) The Central Government may also conduct a special audit of any lottery or lottery scheme organised by any Organising State through the Comptroller and Auditor General of India or any other agency appointed by the Central Government for the purpose and take suitable action thereon.
(21) The Organising State shall devise suitable means and procedures to effectively supervise the conduct of the lottery including the process of draws and all steps till publication of results to avoid any malpractices.
(22) Every State Government shall ensure that no lottery, in any form, is organised by any authority other than the Organising State or its appointed distributors or selling agents within its jurisdiction.