The Centre has issued a draft of new lotteries regulation rules under which a state or the central government has been empowered to ban a draw conducted by any other state.
The draft, called the Lotteries (Regulation) rules, 2010 and issued under Lotteries (Regulation) Act, 1998, will come into force on and with effect from the date of their publication in the official gazette.
According to the new rules, a state government may, in accordance with the Act and these rules, prohibit the sale of lottery tickets and operation of online lottery organised by any other state within its jurisdiction.
The state government shall also notify such prohibition on the sale of lottery tickets and operation of online lottery organised by any other state within its jurisdiction in the state's official gazette.
In case the Central government decides to ban any such lottery scheme, the state government concerned shall issue a gazette notification for banning lotteries scheme wise, within its own territorial jurisdiction.
If aggrieved by the decision to ban such lottery or scheme, the organising state government may file an appeal against such orders banning the organisation of their lottery before the central government within 30 days from the issue of notification banning the lottery.
In case such an appeal is filed, the Centre shall re-examine the facts of the case and may also accord an opportunity of being heard to both the state governments concerned and issue necessary orders upholding, modifying or setting aside such a ban.