Indian state Kerala to revise lottery prizes, agent commissions
The government of Kerala, a southern Indian state that operates one of the country’s largest government-run lottery systems, is planning a comprehensive overhaul of its state lotteries in an effort to revive ticket sales and support the livelihoods of thousands of people working across the sector.
Chief Minister V.D. Satheesan announced the proposed reforms in the State Legislative Assembly on 1 July after Congress MLA Saneeshkumar Joseph raised concerns about the challenges facing the lottery industry amid an alleged decline in ticket sales.
The proposed revamp will include a review of the lottery prize structure and the commissions paid to lottery agents.
“The proposed measures will include a revision of the prize structure and the commission of lottery agents,” Satheesan told the Assembly.
He said the reforms are intended to address issues affecting the sector through measures that improve lottery sales while protecting those who rely on the industry for their livelihood.
Government reassesses previous lottery reforms
The proposed overhaul comes after the previous CPI(M)-led Left Democratic Front (LDF) government revised the lottery framework following the Union government’s 2025 Goods and Services Tax (GST) changes.
According to Satheesan, the GST on lotteries increased from 28 per cent to 40 per cent. Following the tax increase, the agency commission was raised from 10 per cent to 12 per cent, while the number of prizes below ₹5,000 (US$58) was reduced.
“The State government feels that these measures adversely impacted the State lotteries,” Satheesan said.
The latest review signals that the government is reassessing both retailer incentives and the distribution of prizes as part of a broader effort to strengthen the state lottery system.
The review comes after Kerala last revised the prize structure for its weekly lotteries in June 2025. The changes abolished the ₹50 ($0.58) prize category, reintroduced prizes of ₹200 ($2.33) and ₹2,000 ($23.30), and increased the number of ₹1,000 ($11.65) and ₹5,000 ($58.25) prizes.
Thousands depend on the lottery sector
Joseph urged the government to further support the industry by restructuring lottery prizes and reinstating the Karunya Benevolent Fund Board. He told the Assembly that the lottery sector remains an important source of employment across Kerala.
According to Joseph, around 200,000 retail sellers, 20,000 sub-agents and 10,000 agents depend on the lottery sector for their livelihoods.
The proposed overhaul is intended to improve the commercial performance of the lottery system while safeguarding this extensive distribution network.
Police warn against fake online lottery scams
On the same day the government announced the planned reforms, the Kerala Police warned the public about fraudulent online lottery schemes that misuse the official identity of the Kerala State Lottery.
In a statement, the State Police Media Centre (SPMC) said fraudsters were using the official name, government symbol, logo and website design of the Kerala State Lottery on social media and fake websites to deceive the public.
The police said victims are first attracted through advertisements carrying slogans such as “Mega Bumper Dhamaka Offer”, “25 crore prize” and “Kerala Lottery Online Booking”. A prize of ₹25 crore is equivalent to approximately US$2.91 million.
“When the link in the advertisement is clicked, it takes a person to WhatsApp groups or fake websites which use the name, government symbol and logo of the Kerala State Lottery,” the SPMC said.
According to the police, the fraudsters publish what appear to be winning lottery numbers before asking users to submit their mobile numbers to verify results. Victims then receive fake congratulatory messages claiming they have won a prize.
The scammers subsequently request personal information including names, bank account numbers, IFSC codes and Aadhaar numbers to process the supposed winnings.
The SPMC said fraudsters also issue fake lottery registration letters bearing government letterheads and logos before demanding payments described as registration fees, processing charges, GST, tax clearance fees or security deposits.
The police reminded the public that the online purchase and sale of Kerala lottery tickets is completely prohibited. “Do not trust lottery advertisements and links received through social media platforms such as Facebook, WhatsApp, Telegram.”
“Do not book tickets or pay money on fake websites operating in the name of Kerala State Lottery,” it said.
The SPMC added that if money is demanded towards registration fees, processing charges, GST, tax clearance or security deposits before releasing prize money, “then it is a scam”.
The police also advised the public not to share bank account numbers, debit or credit card details, OTPs, UPI PINs or Aadhaar numbers with unknown individuals.
Victims of online lottery fraud were urged to immediately contact India’s cyber helpline on 1930 or report the incident through the national cybercrime reporting portal.
One of India’s established state-run lottery systems
Kerala’s lottery system has operated under government supervision for several decades and remains one of the state’s recognised public welfare initiatives. Revenue generated through ticket sales supports various social welfare programmes while also creating employment opportunities through licensed lottery agents and vendors.
The state conducts regulated lottery draws under official supervision, and authorities advise participants to verify results only through official sources before initiating prize claims.
Kerala operates one of India’s government-run lottery systems. Under the Lotteries (Regulation) Act, 1998, Indian states may organise lotteries or prohibit them within their jurisdictions, making lottery regulation a state-level responsibility. The proposed reforms represent the latest effort by the Kerala government to review the structure and operation of its lottery system amid changing market conditions.
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