Lotteries (Regulation) Act, 1998

commencement.- This Act  may  be called the Lotteries (Regulation) Act, 1998. It extends to the whole of India. It shall be deemed to have come into force on the 2nd day of October, 1997.

In this Act, unless there is anything repugnant in the subject or context,- "bumper  draw of a lottery" means a special draw of  lottery  conducted  on  or during any festival or other  special  occasion  wherein  the prize money offered is greater than the prize  money offered in the case of other ordinary draw of lotteries; "lottery"Ā means a scheme, in whatever form and byĀ whateverĀ name called, for distribution of prizes by lot or chance to thoseĀ personsĀ participatingĀ in the chances of a prizeĀ byĀ purchasing tickets; "prescribed" means prescribed by rules made under this Act.

Save asĀ otherwiseĀ providedĀ inĀ section 4, no State Government shall organize, conduct or promote any lottery.

subject  to which lotteries  may  be  organized,  etc.- A  State  Government may  organize, conduct  or  promote  a  lottery, subject to the following conditions, namely:- prizes shall not be offered on any pre-announced number or on  the basis of a single digit; the State Government shall print the lottery tickets bearing  the  imprint  and  log  of the State in  such  manner  that  the  authenticity of the lottery ticket is ensured; the State Government shall sell the tickets either itself or  through distributors or selling agents; the proceeds of the sale of lottery tickets shall be credited  into the public account of the State; the  State Government itself shall conduct the draws of  all  the lotteries; the  prize  money unclaimed  within such  time  as  may  be prescribed  by the State Government or not otherwise distributed, shall become the property of that Government; the  place  of  draw shall  be  located  within  the  State  concerned; no lottery shall have more than one draw in a week; the  draws  of  all kinds of lotteries  shall  be  conducted between  such period of the day as may be prescribed by the State Government; the  number of bumper draws of a lottery shall not  be  more than six in a calendar year; such  other conditions as may be prescribed by  the  Central Government.

of sale of ticket in a State.- A State Government may,  within the State, prohibit the sale of tickets of a lottery  organized, conducted or promoted by every other State.

etc., of lottery.- TheĀ CentralĀ GovernmentĀ may,Ā byĀ order published inĀ theĀ OfficialĀ Gazette,Ā prohibitĀĀ aĀĀ lotteryĀ organized,ĀĀ conductedĀ orĀ promotedĀĀ inĀ contraventionĀ of the provisions of section 4 or where tickets ofĀ suchĀ lotteryĀ areĀ sold in contravention ofĀ theĀ provisionsĀ of section 5.

Where  a lottery is organized,  conducted  or  promoted  after the date on which this Act receives the assent of  the President, in contravention of the provisions of this Act, by  any  Department  of  the State  Government, the  H  eau  of  the Department  shall be punishable with rigorous imprisonment for a  term which may extend to two years or with fine or with both: Provided that nothing contained in this section shall render suchĀ Head of the Department liable to any punishment if he proves thatĀ theĀ contravention was committed without his knowledge or that he exercisedĀ allĀ due diligence to prevent the commissionĀ ofĀ suchĀ contravention. Notwithstanding anything contained in sub-section (1), whereĀ a contravention under this Act has been committed by a DepartmentĀ ofĀ GovernmentĀ and it is proved that the contravention hasĀ been committed with the consent or connivance of, or is attribute pleaĀ toĀ any neglect on the part of, any officer, other than theĀ Head of the Department, such officer shall also be deemed to be guiltyĀ of that contravention and shall be liable to be proceeded againstĀ and punished accordingly. If any person acts as an agent or promoter or trader in  any  lottery  organized, conducted or promoted in contravention of the  provisions  of  this Act or sells, distributes or  purchases  the  ticket of such lottery, he shall be punishable with rigorous is presentment  for a term which may extend to two years or with fine or with both.

non-bailable.- The offence under this Act shall be cognizable and non-bailable.

Where an offence under thisĀ ActĀ has been committed by a company, every person who at the time theĀ offenceĀ wasĀ committed was incharge of, and was responsibleĀ to,Ā theĀ companyĀ for the conduct of the business of the company,Ā asĀ wellĀ as the company, shall be deemed to be guilty of the offenceĀ andĀ shallĀ beĀ liableĀ toĀ beĀ proceededĀ againstĀ andĀ punished accordingly: ProvidedĀ that nothing contained in this sub-section shall renderĀ anyĀ suchĀ person liable to any punishment if he proves thatĀ theĀ offenceĀ wasĀ committedĀ withoutĀ his knowledge orĀ thatĀ heĀ had exercisedĀ allĀ due diligence to prevent the commissionĀ ofĀ suchĀ offence. Notwithstanding anything contained in sub-section (1), whereĀ anĀ offence under this Act has been committed by a company and itĀ is proved that the offence has been committed with the consent orĀ connivanceĀ of,Ā or is attributable to, any neglect on the pĀ artĀ of,Ā anyĀ director,Ā manager, secretary or other officerĀ ofĀ theĀ company, such director, manager, secretary or other officer shallĀ also be deemed to be guilty of the offence and shall be liable toĀ be proceeded against and punished accordingly. Explanation.-For the purposes of this section,- "company"  means any body corporate and includes a  firm  or  other association of individuals;  and "director",  in relation to a firm, means a partner  in  the  firm.

give directions.- The Central Government may  give directions  to the State Government as to carrying into execution  in the State of any of the provisions of this Act or of any rule  or order made there under.

make rules.- The  Central Government may,  by notification in the Official  Gazette,  make rules to carry out the provisions of this Act. Every rule made by the Central Government shall be laid,  as  soon as may be after it is made, before each House of Parliament,  while  it is in session, for a total period of thirty days  which  may  be  comprised  in one session or in two or  more  successive  sessions,  and if, before the expiry of the session  immediately  following  the session or the successive sessions aforesaid, both  Houses  agree in  making any modification in the rule,  or  both  Houses agree that the rule should not be made, the rule shall thereafter  have effect  only  in such modified form or  be  of  no effect,  as  the  case  may  be;   so, however,  that  any  such  modification  or annulment  shall be without  prejudice  to  the validity of anything previously done under that rule.

makeĀ rules.- The  State Government  may, by notification in the Official  Gazette,  make rules to carry out the provisions of this Act. In particular, and without prejudice to the generality of the foregoing  power,  such rules may provide for all or any  of  the following matters, namely:- time to be fixed for claiming prize money under clause (f) of  section 4; periodĀ to be fixed for draws of all lotteries underĀ clause (i) of section 4;Ā and any  other  matter which  is required to  be,  or  may  be, prescribed. Every  rule made by the State Government under this  section shall  be  laid, as soon as may be after it is made, before  each House  of the State Legislature where it consists of two  Houses,  or  where  such Legislature consists of one House,  before  that House.

The Lotteries (Regulation) Ordinance, 1998 (Ord.Ā 6 of 1998), is hereby repealed. Notwithstanding  such repeal, anything done or  any  action  taken under the said Ordinance, shall be deemed to have been done  or taken under the corresponding provisions of this Act.