The Himachal Pradesh government has made up its mind to lift a 25-year-old ban on lotteries in an effort to boost revenue as the state faces rising debt and declining central allocations.
The move, approved by the state cabinet, is expected to generate between Rs 50 crore and Rs 100 crore ($6–12 million) annually. Officials say the revival will offer a much-needed financial cushion without increasing the tax burden on citizens. The decision follows a recommendation from the Resource Mobilisation Committee, chaired by Deputy Chief Minister Mukesh Agnihotri, and comes as the state wrestles with a debt of over Rs 1 lakh crore ($12 billion).
The finance department will make a presentation to explain the potential of state-run lotteries as a significant revenue source. Officials compared data from various Indian states, noting that Kerala generates over Rs 13,500 crore (approximately $1.62 billion) annually through its lottery operations. In contrast, Punjab earns about Rs 235 crore (around $28.2 million), while Sikkim’s lottery revenues reach nearly Rs 30 crore (about $3.6 million).
Old policy from 1999 overturned
Industry Minister Harshwardhan Chauhan said the reintroduction of lotteries could be beneficial if implemented with proper regulations. “There is no national prohibition on lotteries. Many states like Kerala, Goa, Maharashtra, and West Bengal run them successfully. If properly regulated, Himachal too can benefit,” he stated.
The state is expected to introduce enabling legislation in the upcoming monsoon session of the assembly, beginning 18 August 2025, to operationalise the scheme.
The decision reverses a policy dating back to 1999, when then-Chief Minister Prem Kumar Dhumal prohibited the sale of all types of lotteries under Sections 7, 8, and 9 of the Lotteries (Regulation) Act, 1998. Violations of the Act were made punishable offences.
Opposition responds with fury
Opposition parties, however, have strongly criticised the move. Former Chief Minister Jai Ram Thakur, now the Leader of the Opposition, called the decision “regressive and dangerous.” “By legalising lotteries, the government is reviving a dark chapter in the state’s history,” Thakur said. “Lotteries destroyed families. People lost everything, homes were auctioned, and suicides were reported. The BJP strongly condemns this policy.”
The roots of Himachal’s original lottery prohibition date back even earlier. In 1996, Kul Rakesh Pant, then chairman of the Solan Municipal Council, reportedly wrote to the High Court raising concerns over the single-digit lottery system. The court took suo motu cognisance, and the system was soon prohibited.
State officials have acknowledged those concerns but argue that today’s framework allows for more responsible oversight. With proper controls, they say, the modern lottery model can generate revenue without the same social fallout experienced in the past.
Rising financial burden behind the reset?
The Himachal Pradesh government claims that it is now under intense financial pressure, especially after the withdrawal of GST compensation and reduced funding from New Delhi. And so, the revival of lotteries could be a very calculated measure aimed at fiscal recovery.
If passed by the Assembly, the new legislation will allow state-run lottery operations to restart by the end of the year, ushering in a controversial but potentially lucrative chapter in Himachal’s economic strategy.
