Sunil Chadha
SHIMLA:
Aiming to shore up dwindling state revenues, the cash-strapped Himachal Pradesh government has decided to revive its state lottery system after a 25-year ban.
The decision was taken at a Cabinet meeting and comes amid mounting debt, which has crossed Rs 1 lakh crore. The Sukhvinder Singh Sukhu government aims to earn Rs 50 to Rs 100 crore annually, but the move has reignited a debate on whether this was a much-needed revenue lifeline or a risky gamble with the public’s financial health?
Who pulled the plug in 2000 and why?
The Himachal state lottery was officially banned in 2000 under the BJP government led by then Chief Minister Prem Kumar Dhumal. The ban came after growing public pressure and complaints of financial ruin caused by compulsive gambling. Social activists claimed that lakhs of rupees were leaving the state every month due to people buying tickets from neighboring Punjab.
Using the Lotteries (Regulation) Act, 1998, the state banned all lotteries, including those from other states. The aim was to prevent addiction, reduce financial distress and protect vulnerable communities. “We had seen families fall into ruin. The lottery was a social menace,” said an activist.
A high-stakes comeback
Fast forward to 2025 and Himachal Pradesh finds itself in dire financial straits. With a debt burden crossing Rs 1 lakh crore and limited avenues for immediate revenue generation, Chief Minister Sukhvinder Singh Sukhu’s government has turned to an old — but controversial — source: the lottery.
Industries Minister Harshvardhan Chauhan announced that the lottery system would be revived through a competitive tender process and modeled after successful systems in states like Punjab, Kerala and Sikkim. “We anticipate annual revenues between Rs 50 crore and Rs 100 crore. This is crucial for a state battling fiscal challenges,” Chauhan stated.
The Resource Mobilisation Committee, led by Deputy CM Mukesh Agnihotri, pitched the proposal after a comparative analysis: Kerala earned Rs 13,582 crore in a year from lotteries, Punjab Rs 235 crore and even a small state like Sikkim Rs 30 crore.
Officials argue that Himachal had already lost crores to neighbouring states where lotteries remain legal. “This is about formalising and taxing something that has been happening informally anyway,” a senior finance official said.
Families will suffer again, claims ex-CM Jai Ram
Former CM and Leader of Opposition Jai Ram Thakur has opposed the move, labeling it “morally bankrupt”. “The same government that talks of ‘Vyavastha Parivartan’ is now legalising something that once drove families to suicide and bankruptcy,” Thakur said.
He accused the Sukhu government of promoting “addiction-based revenue”, citing the recent legalisation of hemp cultivation and proliferation of liquor licences. “From liquor to bhang to lottery, this government is finding revenue in ruin,” he said.
Critics worry the revival of lotteries may disproportionately impact low-income groups, who are more likely to spend on lottery tickets in hopes of windfalls. “It may offer short-term revenue, but at what social cost?” asked a local economist.
