Cash-strapped Himachal Pradesh is set to reintroduce lotteries after a gap of 27 years with a Diwali bumper, with an aim to generate at least ₹50 crore in annual revenue.
The directorate of treasuries, accounts, and lotteries (under the finance department) has issued an e-tender to appoint a sole selling agent for the sale of paper and online lotteries. The government plans to conduct lottery operations in a digital and transparent manner, subject to strict regulations.
Bid documents can be submitted till September 14. The online bid submission process will commence on September 3. The technical bid will be opened on September 15. The date for opening the financial bid will be announced later. A letter of award will be issued to the selected agent within 30 days of the financial bid opening. Following this, the lottery operations will commence after the completion of the prescribed formalities.
If everything goes according to schedule, residents of the state will be able to try their luck during the upcoming Diwali festival. This time, the government plans to introduce a modern online system alongside traditional lottery stalls. Residents will be able to purchase lottery tickets digitally from their homes or visit the nearest authorised stall to buy them.
According to the tender conditions, a maximum of 12 lottery draws may be held daily. Additionally, there will be three bumper draws annually. Draws will not be conducted on days of national importance including January 26, August 15, and October 2.
{{/usCountry}}According to the tender conditions, a maximum of 12 lottery draws may be held daily. Additionally, there will be three bumper draws annually. Draws will not be conducted on days of national importance including January 26, August 15, and October 2.
{{/usCountry}}Under the new system, regular draws will be conducted along with bumper draws on Diwali, New Year and other major festivals and special occasions. These draws will provide people with an opportunity to win larger prizes.
The sole selling agent will be required to pay an annual license fee of ₹10 crore to the government, with a 5% annual increase. Furthermore, the agent must provide a minimum guaranteed amount (MGA) of ₹6 crore per year. Bids must include a revenue share of at least 2% of the total lottery turnover.
The government has also mandated a security deposit of ₹30 crore from the agent. This amount must be provided in the form of an irrevocable bank guarantee or a fixed deposit receipt (FDR) from a scheduled commercial bank. The agent will also be required to pay ₹5,000 per draw to cover draw-related expenses.
A two-year contract will be signed with the selected agent. Subject to satisfactory performance, the government may, at its discretion, extend the contract for another two years.
To operate the lottery, the agent must form a special purpose vehicle (SPV). Sales, distribution, digital payments, record-keeping, and financial transactions will be managed through this setup, ensuring a digital record and audit trail for every transaction.
Companies participating in the tender must deposit an earnest money deposit (EMD) of ₹2 crore. The tender fee has been fixed at ₹5 lakh. The selection process will be conducted in two stages. Initially, the companies’ experience, financial capacity, and technical qualifications will be evaluated based on the technical bid. Subsequently, the financial bids of the eligible companies will be opened.
To generate ₹50 crore revenue annually
The decision is considered financially significant for the state, which is facing financial constraints. The government estimates that the reintroduction of the lottery will generate approximately ₹50 crore in annual revenue for the state exchequer. The funds can be utilised for developmental schemes.
Reeling under debt of over ₹1 lakh crore, the state cabinet had approved revival of state lottery on July 31 on the recommendation of the resource mobilisation committee, headed by deputy chief minister Mukesh Agnihotri.
The state, citing Punjab earned ₹235 crore and Kerala a staggering ₹13,582 crore from lotteries in the last financial year, alone had justified reintroduction of the lottery. The state had argued that there is no countrywide ban on lotteries as currently, 13 Indian states, including Kerala, Goa, Maharashtra, Punjab, and Sikkim run legal lotteries.
Lottery was banned in 1999
Lottery was banned in the state by the Himachal government headed by BJP leader Prem Kumar Dhumal in 1999 and made its violation punishable under Lotteries (Regulation) Act.
The lottery was completely banned amid growing complaints of social harm, financial exploitation and fraud. At the time, the government had taken the stringent step considering the adverse impact of lotteries on middle- and lower-income families.