Maharashtra hikes lottery tax

The Maharashtra government is raising its tax per draw on lotteries by Rs 30,000 (US$458) to Rs 100,000 from July 1, 2017, local media reports.

Under the federal Lotteries (Regulation) Act. 1998 only state organized lotteries of one state can be sold in another, with the consent of the state in which the lotteries would be sold. The state organised lotteries are sold and distributed by private operators.

Maharashtra is the largest state that allows lotteries to be sold and accounts for over 80 percent of the legal lottery market. The increased lottery tax is likely to reduce the number of draws conducted in the state and thereby reduce lottery sales.