The Hindu : `Ordinance has helped reduce lotteries'

Online edition of India's National Newspaper
Sunday, Dec 28, 2003

Southern States

Southern States - Karnataka

`Ordinance has helped reduce lotteries'

By Our Special Correspondent

BANGALORE DEC. 27. The Minister of State for Small Savings, Lotteries, Insurance, and Agro Processing, Baburao Basavanappa Chinchansoor, on Saturday denied reports attributing suicides to indulgence in lotteries.

Addressing presspersons here, he said that after the promulgation of an Ordinance by the Governor, T.N. Chaturvedi, to regulate lottery promotion and sale, the number of lotteries had come down to 36 from 200. Lottery promoters were conducting only 40 draws a day compared with over 100 earlier. Many operators had closed down their lottery outlets in the State owing to financial losses, he said.

The Ordinance envisaged levying a tax of Rs. 1.5 lakh on each bumper draw, and Rs. 1 lakh on each ordinary draw. "All operators cannot afford to pay a tax of Rs. 1.5 lakh a draw every day," he said. The annual revenue from the lottery had increased from Rs. 10 crore to Rs. 40 crore, he added.

`Ban likely': Mr. Chinchansoor said the Chief Minister, S.M. Krishna, was likely to impose a ban on the sale of online lotteries in the 2004-05 Budget. "The Chief Minister is thinking of banning online lotteries, and an announcement will be made in the next Budget," he added.

There were some legal hurdles in imposing a ban on online lotteries. Mr. Krishna had been discussing the issue with the Advocate General, A.N. Jayaram, and the Law Ministry. Playwin had written to the Government informing it of financial difficulties after the promulgation of the Ordinance. The Government had not replied to the letter. However, many lottery operators were likely to close down their business soon in the State. Playwin, which was conducting three draws earlier, had now reduced it to two, the minister said.

The Government, Mr. Chinchansoor said, had entered into a five-year agreement with Ultra Entertainment Solutions Private Ltd., a Zee Group company, to market its online lottery after a tendering process. The company had appointed Playwin to provide infrastructure and marketing support, and had to pay Rs. 996 crore to the Government during a five-year period, the minister said.

The Government was considering various issues, including giving compensation to the company, before taking a decision to ban online lottery, he added.

To a question on illegal lotteries and Internet lotteries, he said a meeting was held recently and steps to curb them were discussed.

Those operating such lotteries would be punished with a two-year jail term.

Under the Ordinance, promoters and sellers should register themselves. If they did not do so, penalties would be levied, Mr. Chinchansoor said.

The minister said the Government had decided to set up a Food Park at Malur.

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