What is the legality of lucky draw in India.

Response

A typical kind of lucky draw is a type of game usually played in carnivals where contestants try their luck and pick out a gift from a container without looking. The gifts range from very expensive ones to cheaper smaller ones. It is also known as lucky dip. Nowadays, lucky draws are mostly all about spinning wheels, etc.

Lucky draws also include raffles in which a person buys a cheap raffle ticket and try their luck at winning big prizes like cars, bikes, mobile phones, refrigerators, etc. Raffles and lucky draws are most common in school fests, carnivals, festivals, etc.

Lucky draw scheme which is included in the Lotteries Regulation Act, 1998 has to stay within the given parameters, and most lucky draws which are organized by the governments do not require a ticket purchase and the participants can directly come and try their luck, and thus this does not account to gambling. lucky draw is very different from a lottery, and this would not fall under the category of gambling.

Therefore, a businessperson or a firm can promote and use lucky draw for marketing their business. However, in lucky draw, the organiser cannot back off from giving out the lucky draw prize and has to pay the sum to the winner.

Reference: Lottery Regulation Act, 1998

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