The Story of Failed Online Government Lotteries 

failed state lottery
Ramesh Apte

Editor-In-Chief, Ramesh

Last updated on 14th December 2020

Published: 19/06/2020

Categories: Informational

Online State Lotteries In Demand

I have long said that Indian government lotteries need to make the move online.

As India gets more and more digital there is a huge demand for online alternatives. Food orders, grocery shopping and almost any other consumer service can be handled in a matter of seconds through smart digital solutions provided by private companies.

The lottery should be no different and in the rest of the world it isn’t.

International lottery providers have been selling tickets to the biggest government games in the world for more than a decade.

Companies like TheLotter have provided the opportunity for players worldwide to win life-changing jackpots in the biggest government run games since 2002.

Why doesn’t an online alternative exist among the state run lotteries in India?

If you are an avid lottery player you probably already know that this has existed but sadly is not live anymore.

LuckyKhel & Playwin

LuckyKhel and Playwin Lotto are two government sanctioned online lotteries that were active up until 2019.

Both sites were seen as the future for lottery in India but were, as in many other sectors, let down by the very governments that sanctioned them.

Whilst government run lotteries have enjoyed a low tax rate of only 12%, private lotteries had to adhere to a much higher 28% tax rate.

Playwin Lottery had a successful run for more than 18 years. It was active from November 2001 until October 2019 when a Corporate Insolvency Resolution Process was started by the National Company Law Tribunal in India.

LuckyKhel had a much shorter activity and was only live for a year. It was founded in November 2018 and in November 2019 the last external communication was sent through their Facebook page saying that the platform was temporarily out of service but would start again soon with new games.

As I am writing this in June of 2020 there is still no news on when it will return, if ever.

An Attempt To Even Out the Odds

Many private lottery operators have long complained about the unfair treatment with different tax rates between private and government run lotteries. Playwin was ordered to stop their activity based on outstanding taxes and loans due.

In December 2019 the GST council took this into account and introduced a plan to implement a unified tax rate of 28% for all lotteries.

The new lottery tax rate was set in place on the first of March 2020.

Sadly the two state online lotteries that were available had already shut down their operations. As the saying goes “too little, too late”.

Is There Any Hope For State Lotteries Online?

If there is anything the new tax law has created is an opportunity for future government sanctioned private lotteries.

They finally play by the same rules that apply to the regular government run lotto games and hopefully an ambitious company will attempt to fill the gap left behind by Playwin and LuckyKhel.

I also believe that the new tax rate will push state lotteries to implement upgrades to their games.

With a new tax rate ticket prices will increase and the only way to justify the higher price without losing customers is by giving players better service which is easiest done online.

Since international online lotteries are getting more traction in India as each day passes it is only a matter of time before most lottery players move to the superior lottery alternatives available on the internet if govt games don’t improve.

Until then I can only recommend online worldwide lottery sites. They are safer, faster, easier, offer faster payouts and have excellent customer support available.

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