Categories
BLOG

rajshree online lottery maharashtra

Online lotteries of other states to be banned in Maha

  • Share
  • Facebook
  • Twitter
  • Linkedin
  • Email

Officials say there is no record of sales conducted online; state will encourage paper lottery system

Deputy Chief Minister and state Finance Minister Ajit Pawar has decided to ban online lotteries of other states as there is no record of their sales, resulting in a loss of revenue to Maharashtra government. Officials said Maharashtra will now encourage the old paper lottery system, which has helped states like West Bengal generate higher revenues.

Though the state banned its own online lottery long ago and operates only the paper lottery system, broadly known as Maharashtra Rajya Lottery, people prefer to purchase other state lotteries online. “The government has no control over this and there is no way to keep track of the transactions. For this lack of transparency, we have decided to ban the online system,” an official from the finance department said. The decision will be finalised at a cabinet meeting today.

While Maharashtra’s lottery revenues stand at around Rs 132 crore per year, states like Kerala earn around Rs 1,300 crore. The average daily business in Mumbai, which has around 4,000 stalls, is around Rs 15 crore. While 16 states have banned lotteries, the ones that still operate the system are Maharashtra, West Bengal, Madhya Pradesh, Kerala, Goa, Punjab, Assam, Arunachal Pradesh, Meghalaya, Manipur, Sikkim, Nagaland and Mizoram .

The state is grappling with a debt burden of Rs 6 lakh crore and is paying an interest amount of Rs 35,000 crore every year. Meanwhile, the state has announced a loan waiver of Rs 40,000 crore to farmers. The deputy CM has therefore instructed all departments to adopt cost-cutting measures and come up with ideas to increase the revenues.

Officials say there is no record of sales conducted online; state will encourage paper lottery system

Maharashtra Decides to Ban Online Lotteries

The Maharashtra government has decided to ban online lotteries of other states, as there is no way to track online sales of lotteries, which leads to loss of revenue for the state.

Maharashtra’s Deputy Chief Minister and Finance Minister Ajit Pawar has decided to make this move to ban online lotteries in the state, as reported by Mumbai Mirror. The state will only focus on selling paper-based lottery, allowing proper collection of taxes on lotteries of other states sold in Maharashtra.

Maharashtra’s own online lottery was banned a while ago, and they currently operate paper-based lottery called Maharashtra Rajya Lottery. As the state has no control over or account of other states’ lotteries and there were various irregularities in online lotteries of North-Eastern states marketed by private companies, the Maharashtra state government has decided to put a stop to online sales of such lotteries.

Besided Maharashtra, lotteries are allowed in the states of Arunachal Pradesh, Goa, Kerala, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, West Bengal, and Bodoland Territorial Council region (BTC). Until this decision was taken by the Maha Vikas Aghadi government, online lotteries sold by private lottery distributors on behalf of these states were freely sold in Maharashtra.

The average annual revenue of Maharashtra state lottery is about Rs. 132 crores, however lottery income in Kerala in the year 2017-18 was Rs 9,034.16 crore although Maharashtra has a much larger population.

In the year 2017-2018, when the GST was first introduced by the Centre, the slab of GST in Maharashtra was 12% on the face value of lottery tickets sold by state-run lottery sellers and it was 28% on the face value of lottery tickets sold by state authorized private sellers selling lotteries of other states. Introduction of GST resulted in slowing down of lottery sales in the state. The differential GST rates also attracted large-scale protests by lottery traders in Mumbai and in the entire state of Maharashtra.

In December 2019, the GST council, in its first ever voting, decided upon a flat 28% GST rate on the face value of all kinds of lottery tickets sold by state and private sellers. This led to loss of a number of jobs in the industry in Maharashtra, as the business slowed down. Private lottery distribution companies’ claim that the industry employs about 8 lakh people in Mumbai alone.

Currently, in the face of rising state debts, the deputy CM of Maharashtra has instructed all departments to cut costs and propose ideas to increase revenue. It seems that banning online lottery sales from other states is expected to encourage users to buy paper-based lotteries, which are more trackable and will contribute to the tax collected by the state on lotteries.

Maharashtra Decides to Ban Online Lotteries The Maharashtra government has decided to ban online lotteries of other states, as there is no way to track online sales of lotteries, which leads to