R.1 Short title and commencement.--

       (1) These rules may be called the Lotteries (Regulation) Rules, 2010.
       (2) They shall come into force on the date of their publication in the Official Gazette.

R.2 Definitions.--

       (1) In the rules, unless the context otherwise requires,-
       (a) "Act" means the Lotteries (Regulation) Act, 1998 (17 of 1998);
       (b) "central computer server" means a system of multiple computers at a central location under the direct control of the Organising State that accepts, processes, stores and validates the online lottery transactions or otherwise manages, monitors and controls the entire system of online lottery;
       (c) "distributor or selling agent" means an individual or a firm or a body corporate or other legal entity under law so appointed by the Organising State through an agreement to market and sell lotteries on behalf of the Organising State;
       (d) "draw" means a method by which the prize winning numbers are drawn for each lottery or lottery

R.3 Organisation of Lottery.--

       (1) A State Government may organise a paper lottery or online lottery or both subject to the conditions specified in the Act and these rules.
       (2) The State Government may organise a lottery or lotteries, if it so decides, by issuing a notification in its Official Gazette, outlining the purpose, scope, limitation and methods thereof.
       (3) The Organising State shall announce in advance, by way of a notification in the Official Gazette, the following information about every lottery, namely:-
       (a) the name of the lottery or lottery scheme;
       (b) prices of the lottery ticket;
       (c) total number of tickets printed in case of paper lottery;
       (d) gross value of the tickets pr

R.4 Appointment of distributor or selling agent.--

       (1) The Organising State may specify qualifications, experience and other terms and conditions for the appointment of distributors or selling agents.
       (2) The distributors or selling agents shall furnish a security deposit or a bank guarantee, as may be specified by the Organising State.
       (3) The distributors or selling agents shall maintain a record of the tickets obtained from the Organising State, tickets sold and those which remain unsold up to the date and time of draw along with other details, as may be specified by the Organising State.
       (4) The Organising State shall pay to the distributors or selling agents any commission due to them and the prize amounts disbursed by the distributors or selling agents to the winners, if any, out of the money so deposited in the Public Ledger Account or

R.5 Procedure to prohibit the sale of lottery tickets by the Central Government.--

       (1) If a State Government is of the opinion that the Organising State or their distributors or selling agents are organising lotteries in violation of the provisions of the Act and these rules, it shall immediately bring the violations to the notice of the Organising State concerned alongwith the details of such violations or irregularities noticed and the Central Government shall also be apprised of such violations or irregularities simultaneously.
       (2) The Organising State shall send a suitable response on the issues raised by the State Government under sub-rule (1), within a period of thirty days of the receipt of such communication.
       (3) In case where the State Government concerned is not satisfied with the response sent by the Organising State under sub-rule (2) or the Organising State does not respond or does not take action to disco