1. Is Online Lottery Legal In India
2. Purchase Lottery Tickets Online
3. Can You Purchase Lottery Tickets Online

US Lotteries – Digging Deeper…

After receiving so much conflicting information regarding playing online lottery games like US Powerball and Mega Millions, it was time we took a serious look at what are the rules and regulations are for people residing outside the United States of America. The size of these jackpots is attracting attention, and serious lottery players want to know whether their play will be legal.

1. It also depends on subtle definitions of the local law. In the United States gaming is subject to both state and federal laws. When it comes to buying tickets online to lotteries, the governing law is the state one. Most brands block players from restricted countries to avoid any legal issues.
2. Online Lottery is not illegal you can play it but you have to pay the income tax on the money you receive in your account from the winnings. Rest you would be better guided by a local lawyer.
3. Buying lottery tickets online is perfectly legal in the United States. In 2011, the DOJ released a formal opinion stating that the Federal Wire Act only applied to sports betting and did not affect other forms of online gambling, including lottery games.
4. Due to outdated laws in India online lottery is not illegal if it lives up to certain requirements. The lottery site servers need to be outside of India. The lottery game needs to be an international game. You need to be over 18 to play.

It was long believed that the Federal Wire Act made it illegal to sell lottery tickets online, but as states come under increasing financial stress despite ever-increasing taxes, lawmakers are under tremendous pressure to raise revenue without raising taxes. Then in late 2011, the Justice Department clarified its stance on the Wire Act.

The Bottom Line on US Lotteries

It was concluded in an opinion by VIRGINIA A. SEITZ, United States Assistant Attorney General about the states of New York and New Jersey, that lotteries do not form a part of the Wire Act which is the primary federal legislation governing interstate transactions.

The amendment to the Wire Act was a result of the growing use of the Internet. Though initially introduced in 2009, it was on the 20th of September 2011, when Seitz wrote a 13-page legal opinion that said “nothing in the materials supplied by the Criminal Division suggests that the New York or Illinois lottery plans involve sports wagering, rather than garden-variety lotteries. Accordingly, we conclude that the proposed lotteries are not within the prohibition of the Wire Act.” In other words, the US federal government conceded the Wire Act only applied to sports betting.

This affects the concept of interstate purchasing of lottery tickets. There is no question that US citizens cannot play lotteries online internationally, but people are allowed to play lotteries online outside the US for games in the US. Some of the US states do have specific rules that prohibit foreigners from playing lotteries in their state, but it is clear where foreigners are welcome!

Can Foreigners Play US Lotteries?

The California Lottery site is very specific and says “It is not necessary to be a California resident, nor a US citizen to play and win any of the California Lottery‘s games, but a player does have to travel there to collect any big jackpot. Most good concierge services will help facilitate this.

In speaking to the Georgia State Lottery, they confirmed that a player would not have to be a resident but would have to fly down to Georgia to physically pick up their big jackpot if a player won US Powerball or Mega Millions. Oh – and they would have to pay the 30% Federal tax. Technically, players are supposed to buy the tickets themselves, but when I discussed getting a friend to do it for me, they assured me that was not an issue. Just to make sure that I either trusted the friend to hold my ticket for me or send it to me immediately (before the draw!).

The Texas State Lottery also confirmed no worries – come get your money! Funny, they also confirmed that this could be processed from outside of Texas with the proper form completed and identification provided. Forget that – if I won the big jackpot, I’d be on a plane to get my money!

Getting Technical on Tax

In a legal opinion by Martha L. Arias, Immigration and Internet Law Attorney, Miami, IBLS Director, she commented on the income tax implications of Israel residents who might win a lottery in the US. It was clarified that they can receive either their lump sum or annuity, but must pay federal tax applicable to foreigners (30%).

Stay Tuned to This Channel

Keep in mind folks that this is evolving legislation, but for now, I have talked to enough people and received information in writing that as long as you use an online lottery concierge that you trust, they will walk you through the correct legal process to claim your big jackpot!

Many of the FAQs and Terms & Conditions online are slightly out of date and do not reflect the current rules and regulations. Happily, I feel much more confident in giving US lotteries a serious thumbs up as well as our approved concierge lottery services.

That is the point – using a concierge lottery service that you trust and that will provide you with the necessary information to collect your jackpot.

Introduction

A lottery is a form of gambling in which people are involved in the drawing of numbers at random for a prize. Governments may act as a regulatory body in individual states, while in other states, there might be illegal lottery activities. From time immemorial, gambling as a form of recreation has been practiced by humankind. It can be traced back to the ancient texts of Mahabharata. Instant lottery, lotto, the number game, toto are few among the conventional types of lottery. In an online lottery system, tickets are purchased using a lottery terminal, which is recorded on the server and is later printed out for the bettors.

Turbulences in India during the 1960s led to a ban on private lotteries in 1967. In India, the lottery is banned in these 13 states- Maharashtra, Sikkim, Nagaland, Meghalaya, Mizoram, Manipur, Punjab, Goa, Assam, Arunachal Pradesh, and Kerala.

The central legislature has the power to enact laws with respect to lotteries as per power conferred under India’s Constitution. Lotteries have been expressly excluded from the ambit of the Gaming Legislations. It is now governed by the Central law Lotteries (Regulation) Act, 1998 under which the Lottery (Regulation) Rules 2010 (“Central Lottery Laws”) and state-specific rules have been framed (“Lottery Laws”). The Central Lottery Laws allow the state governments to formulate, organize, conduct, or promote a lottery, subject to the provisos specified in the Central Lotteries Laws. The state governments are conferred with the power to appoint an individual or a corporate as a “distributor or selling agent” through an agreement to market and sell lotteries on behalf of the organizing State.

Read more about: Everything About Betting and its Legality in India

Is Online Lottery Legal In India

The Supreme Court in 2015 while hearing, All Kerala Online Lottery Dealers Association Vs. State of Kerala & Orshas upheld the ban on online lotteries. The court reasoned that a lottery is a form of gambling that was condemned as a vice by the Rigveda, Smritis, and Arthashastra. This case was an appeal from a Division Bench of the Kerala High Court that upheld the Kerala Government’s decision to declare the state an online lottery free zone. The Kerala Government in 2005 banned all computerized and online lotteries run private and other state governments in the State while allowing paper lotteries to continue in the State. This was opposed by online lottery dealers, who were mainly-operating from Sikkim, contending that the distinction drawn by the Kerala Government between the paper lottery and online lottery is discriminatory, and it is a violation of the Article 14 of the Constitution of India.

The Supreme Court held that it was constitutionally valid to discriminate between online and paper lotteries as two distinct classes of lotteries as per Lotteries (Regulation) Act, and consequentially, a state government may ban online lotteries even though it may be conducting paper lottery schemes. The Supreme Court observed that as long as a state does not itself conduct a particular class of lotteries, it may ban within its territory that class of lotteries conducted by other states.

Additionally, in order to check illegal lottery sales in the guise of an online lottery, the Punjab government under section 5 of the Lotteries (Regulation) Act 1998 banned online lottery in January 2020. They also aim to boost the State’s tax and non-tax revenue by adopting this ban.

Another important aspect is Section 30 of the Indian Contract Act, 1872 says, among other things, “no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which may wager is made”. Therefore, even if it is legal to buy a lottery ticket, the winner has no right to enforce the claim on the agency. Justice Dharmadhikari in Subhash Kumar Manwani v. State of Madhya Pradesh reasoned that “To treat an agreement by way of wager as void is that the law discourages people from entering into games of chance and making earning by trying their luck instead of spending their time, energy and labor for more fruitful and useful work for themselves, their family and the society.”

Purchase Lottery Tickets Online

Can You Purchase Lottery Tickets Online

It is now clear that Online Lottery is legal in India and falls under the purview of both Central and State Laws. It can be made safe and secure with robust properties, including accuracy, transparency, privacy, and verifiability. A system can be said to be accurate if it is impossible for the sold lottery numbers to be modified or tampered with. It has to be transparent in the sense that it should not permit any third parties to obtain data from the system. The system has to be private, i.e., without the consent of the buyer, his identity shall be revealed by neither the authorities nor any third parties. A system has to be verifiable, i.e. the buyer must be able to claim the winning number even if the system’s complete data is destroyed. If an online lottery system is designed by accommodating these features, it can be secure.