Is Himachal Winning The Lottery Or Betting On A Risky Game?

It’s India’s first state-regulated digital lottery, run by the government of Meghalaya since last year. Now, Himachal Pradesh is preparing to follow suit. 

The hill state’s finances are under severe strain. With a debt of over Rs 1 lakh crore, the government has been on the hunt for new revenue streams. 

For context, in its 2025-26 budget, it allocated Rs 1,492 crore just for the outlay of roads and bridges. It's a figure that leaves little room to fund post-disaster reconstruction after the landslides and flash floods that have been devastating the region this year.

Lotteries Are Legal?

As grey and shady as they sound, lotteries are legal in 13 Indian states, banned elsewhere, and still found everywhere, albeit underground. 

They are easy. Buy a ticket and leave it to chance. Small risk (tickets start from Rs 15), for a chance at a large reward. The chance may not be a lot, but most people aren’t mathematicians. 

The challenge lies not in the process, but in the regulation, from a legal and moral point of view.

“Games of chance, which include lotteries, still fall under the ambit of the state government: List-II of Schedule 7 in our Constitution, which is the State List,” Nirupama Soundararajan, CEO and co-founder, Policy Consensus Centre, told The Secretariat. “It is the prerogative of the states to either continue or discontinue lotteries as they see fit,” she said. 

The legal framework for lotteries in India is built on the Lotteries (Regulation) Act, 1998, and the Lotteries (Regulation) Rules, 2010. Lotteries can be run directly by state governments or through licensed private distributors, like Easy Lottery, with revenues ultimately flowing to the state exchequer. 

In 2024-25, Punjab earned Rs 235 crore from lottery sales. Sikkim brought in Rs 30 crore. Kerala, which was the first state to run a lottery and has been since 1967, earned Rs 13,582 crore last year, the sector’s undisputed leader.

For cash-strapped states, that revenue is tempting. “When you ban something, it doesn't disappear magically; it only goes underground,” said Soundararajan. “Banning something is never the solution, because what you end up doing is making recourse or proper grievance redressal very difficult,” she explained. 

“If I'm not treated fairly, or if I'm cheated, I have no recourse to the law, because it's banned. Regulation always trumps banning any day,” she said. 

However, the current system has not kept pace with technology. Most Indian lotteries are still paper-based, foreign investment is prohibited even for tech upgrades, and private distributors operate under outdated rules.

Recreation To Re-creation Of Wealth

Lotteries have been positioned as tools for public good worldwide. The National Lottery in the UK, for example, contributed US$ 4 billion towards funding for Olympic teams, arts, and cultural projects.

In India, the overall lottery market is projected to reach US$ 44.3 billion by 2030. Supporters argue that, if regulated well, this could become a sustainable source of funding for welfare schemes. But, coming from a moral high ground, there is trepidation about addiction and tempting marginalised people. 

Public opinion in Himachal is mixed. “Spending money to bet on things already exists. There’s no regulation on fantasy apps like Dream 11, so why shouldn’t the government make money off of this habit and use it for our people?” a resident of Dharamshala told The Secretariat on condition of anonymity. “When money is being spent on this by people anyway, I’d rather it goes to the government than a corporation,” they said. 

Another local told The Secretariat it’s a case of “Behti Ganga mein haath dhona” or jumping on the bandwagon of making money through betting. Others are more cynical. “It’s a weird case of Robinhood,” a student in Hamirpur, said. “Take from the poor and give back... also to the poor.” 

A resident of Mandi who used to bet many years ago, told The Secretariat that he was glad lotteries were banned. Although he was still able to bet on other things, the ban made it harder, and he was able to wean off the habit. He said he’s not thrilled about the reintroduction. 

Even seeking public opinion is a game of chance. There is no way of knowing whether the general public is in favour or against the move. 

While the sector can create employment and revenue, it comes with the same moral debates that surround alcohol or gambling: the risk of addiction, the ethics of state sponsorship, and the perception of targeting vulnerable populations.

Risks, Rewards & Road Ahead

Himachal is not entering uncharted territory. States are making money. Meghalaya recently approved a Rs 50 crore online lottery.

Yet, experience shows many pitfalls. Audit reports by the Comptroller and Auditor General (CAG) have repeatedly flagged poor record-keeping, delays in paying winners, and inadequate verification systems in other states. This has led to revenue losses and public distrust.

Experts believe that earmarking lottery income for specific purposes, such as disaster relief, green initiatives, or infrastructure, could raise transparency and public support. “It’s time for us to evaluate the policies in a better manner… make it more efficient, more responsible, more streamlined,” Soundararajan said. 

Modernisation is key with digital tracking, better distribution oversight, and weeding out illegal operators. “If you can generate revenue in a relatively decent manner… why not? With taxation, we don’t have much of a choice, but this is a voluntary expenditure against a possible return,” she said. 

As climate change intensifies the threat of landslides and flash floods, Himachal will need steady funds for disaster preparedness and recovery. Lotteries could help bridge that gap if they are implemented with robust safeguards.

The moral arguments are unlikely to disappear, but the policy question remains the same: Should a government refuse a potentially significant revenue source because of its association with chance, or should it regulate that risk for public gain?

For now, Himachal is willing to take the gamble. Whether the odds are in its favour depends not on luck, but on policy.