Key Points
Following reports of irregularities flagged by Comptroller and Audit General (CAG), Union home ministry had proposed to amend the Lotteries Regulation Act, 1998, seven years ago and revise the Lotteries Regulation Rules, 2010, but held back after several petitions by big market players including lottery king Santiago Martin's Future Gaming and Hotel Services...
In its various audits in Sikkim, Mizoram and Nagaland, CAG had found grave violations that favoured marketing agents such as Future Gaming..
In its 2017 report, the CAG noted, "The Ministry of Home Affairs, GoI, is reviewing the situation and is likely to notify new regulations whereby revenue receivables are expected to be linked to sales turnover."..
Similarly, the Lottery (Regulation) Rules notified in April 2010 require that the organising state shall ensure that proceeds of the sale of lottery tickets as received from distributors or selling agents or any other source are deposited in the public ledger account or in the consolidated fund of the organising state...
The 2010 rules further note that it is the responsibility of the organising state to ensure that the income tax on prizes, wherever applicable, is deducted at source and that the prize money is credited to the bank account(s) of the prize winner(s)..
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