Indian state plans new model to revive state lottery sector
The Maharashtra government is considering a new model to revive its struggling lottery sector and increase state revenue. A proposal under review suggests that money spent on lottery tickets will not be forfeited if the buyer does not win. Instead, the amount will be deposited with the state government and repaid to the buyer after three or five years with interest.
Lottery as a savings model
According to former state finance minister and member of the Legislative Assembly (MLA) Sudhir Mungantiwar, who heads the committee set up to suggest reforms, the model is designed to make lotteries more acceptable. He explained that if a person fails to win after purchasing a ticket, the money will stand deposited with the state. After three or five years, the buyer will receive the refund with interest. He added that this approach can remove the stigma of lottery being a gamble.
The committee was formed in April 2025 with representatives from different political parties. Its main objective is to suggest ways to increase revenue from lotteries without encouraging addiction. The final report is expected within the next two months and will be submitted to the finance department for further action.
Learning from Kerala’s model
The committee has studied the Kerala lottery model closely. Kerala’s lottery sector has an annual turnover of around ₹12,000 crore ($1.36 billion) and profits between ₹3,000 crore ($339 million) and ₹4,000 crore ($453.2 million). In contrast, Maharashtra’s lottery sector has an average turnover of only ₹30 crore ($3.4 million) to ₹35 crore ($3.97 million).
Officials believe that reforms can increase revenue significantly. They also stress that the money generated should not be used for routine government expenses like salaries or loan interests. Instead, it should be invested in productive sectors that contribute to the state’s long-term development.
Use of ATMs for ticket sales
The committee is also exploring new ways of selling lottery tickets. One proposal includes the use of thousands of ATM machines across the state for purchasing tickets. Safety protocols will be put in place to ensure secure transactions.
However, the committee is not in favour of online lottery operations. Members have pointed out that online platforms may attract children and could lead to misuse. NCP (SP) MLA Rohit Patil, a member of the committee, said that the panel’s role is to present facts before the government and not to impose decisions.
Revenue for public services
The Maharashtra State Lottery was first launched on 12 April 1969. The finance department had introduced it to protect citizens from illegal gambling schemes like Matka. Over the years, revenue from the lottery has been used for infrastructure projects and to support health and education facilities.
The sector has also created employment, as many unemployed people engage in selling tickets for full-time or part-time income. Officials hope that reforms will revive the sector and make it a strong source of state revenue once again.
Report to be submitted soon
The all-party committee will finalise its report within the next two months. The recommendations will focus on increasing revenue, adopting safe sales mechanisms, and ensuring that profits are directed towards productive investments.
The Maharashtra government will take the final decision after reviewing the committee’s findings. If implemented, the new model could transform the lottery into a mode of savings as well as a revenue source for the state.
