'Regulation and not ban is the solution'

Members of the All India Federation of Lottery Trade and Allied industries today urged the various state governments and the central government to revive the lottery trade in the country.

The Lotteries (Regulation) Act 1998 and the subsequent Lotteries (Prohibition) Act have seriously affected the lottery industry.

The Lotteries (Regulation) Act 1998 banned the gambling type 'single digit' and 'instant' lotteries and introduced some regulatory measures but the Lotteries (Prohibition) Act, 1999 led to the stagnation and closing of shops by many operators in the industry.

This has led to serious problems like unemployment as the closure of the lottery industry has a direct impact on 27 lakh people. This includes vendors and hawkers, out of which two lakh people are disabled.

Usman Fayaz, president AIFLTAI and CEO, Martin Group said that the net turnover from the lottery trade is around Rs 50,000 crore and with the imposition of ban on this trade, it would not only force the government to lose a large source of revenue but would also put over a million people jobless.

He added that the ban on lotteries will lead to illegal trade leading to illegal betting and gambling and a marked increase in crime.

He demanded the creation of regulatory bodies along the lines of SEBI or TRAI to regulate the operations of the lottery industry.

Lotteries are a net revenue earner for the centre and the state exchequers with an estimated earnings of around Rs 1,700 crores each year, of which a major part has been spent on development projects and welfare activities such as health, education and social welfare.

The total capital employed at present is Rs 850 crore of which direct is Rs 660 crore and indirect is Rs 200 crores.