The Hindu : Karnataka News : Federation opposes ban on lotteries

Online edition of India's National Newspaper
Wednesday, Jun 22, 2005

Karnataka

Karnataka

Federation opposes ban on lotteries

Special Correspondent

BANGALORE: Lotteries need not be banned altogether but there can be a government-appointed regulatory body to monitor how they are conducted, Usman Faiyaz, President of All India Federation of Lottery Trade and Allied Industries and Chief Executive Officer of Martin Group, said here on Tuesday. There can be regulations such as not more than 50 draws a day and draws only between 3 p.m. and 9 p.m.

"The lottery business contributes Rs. 50,000 crores annually in revenue to various governments. A ban will lead to loss of revenue and deprive one million people of their livelihood," Mr. Faiaz said.

Lotteries created jobs and income to many and like Securities and Exchange Board of India SEBI or the Telecom Regulatory Authority of India (TRAI), there can be a regulating body with sufficient powers to regulate lotteries, he said.

Many lotteries were conducted by the government agencies. What the Government needs to do is to strictly ban unauthorised gambling such as "satta" and "matka" which ruined many rural families. The figures collected by the federation showed that about 25 lakh people were employed directly and indirectly in the lottery trade and earned a combined income of around Rs. 1,800 crores.

Lotteries contributed to the income of other businesses; the paper industry earned about Rs. 125 crores annually and the printing industry similar amount.

The capital invested by the distribution amounted to Rs. 560 crores.

Paresh Rajdev, Chief Executive Officer of Forbes Infotainment Ltd, which runs several lotteries, said: "The federation favours transparency in the functioning of even State-run lotteries so that those buying tickets have no misgivings. Major corporates are tied up with lotteries," he said.

Lotteries have funded institutions such as the Indian Spinal Injuries Centre in New Delhi, Sankara Nethralaya in Chennai, the Hyderabad Blood Bank and the Chandigragh Sports Council. The federation donated Rs. 20 lakhs to the Prime Minister's Tsunami Relief Fund. For reconstruction in the earthquake-hit areas in Gujarat, Rs. 1 crore was donated since 2000 by members of the Federation, Mr. Rajdev added.

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