26 years after shutting down lotteries, cash-strapped Himachal makes U-turn

KULLU: Cash-strapped Himachal Pradesh is trying its luck with lottery to turn its fortunes. The cabinet has allowed lottery operations, which were shut down in 1999. Burdened with a debt of over Rs 1 lakh crore, it hopes to make a modest Rs 50 crore to Rs 100 crore annually from sale of lottery tickets.

The decision to reintroduce lotteries after over a quarter century was taken in a cabinet meeting on July 31. The recommendation came from a cabinet sub-committee set up to give suggestions to boost state revenue.

The move seems to be inspired by other states that run lotteries. Neighbouring Punjab earned Rs 235 crore through sale of lottery tickets during the 2024-25 fiscal while the tiny state of Sikkim made Rs 30 crore. Kerala tops the list - the southern state earned a jaw-dropping Rs 13,582 crore last fiscal. Himachal, which is finding it difficult to meet the expenses of rebuilding the damage caused by this year's landslides and flash floods, hopes to mop up some much-needed funds this way.

"Many states earn through lotteries. You will be surprised to know how much Kerala earns. Himachal Pradesh govt has decided to restart the lottery system after a recommendation was made by a cabinet sub-committee," said industries minister Harshwardhan Chauhan. "We will follow the tender process to run lotteries in Himachal Pradesh, just as other states do."

The decision to reintroduce lotteries in Himachal has come at a time when the state's debt stands at a back-breaking Rs 1,04,729 crore, and the per capita debt has reached Rs 1.17 lakh, the second highest after Arunachal Pradesh. To make the financial situation even worse, the revenue deficit grant, financial assistance from the Centre, has come down from Rs 6,258 crore in 2024 to Rs 3,257 crore in 2025, and GST compensation has been stopped by the Union govt.

Govt is expected to introduce the bill on lotteries in the monsoon session of assembly, beginning Aug 18.Himachal banned lotteries, both state-run and from outside, in 1999 during Prem Kumar Dhumal's tenure as chief minister.

Lotteries are legal in 13 states - Punjab, Kerala, Madhya Pradesh, Maharashtra, Goa, Bengal, Mizoram, Nagaland, Sikkim, Manipur, Arunachal Pradesh, Meghalaya, and Assam.