Akshay (Advocate) 29 March 2020
Abdullah Tanveer (Advocate) 30 March 2020
Dear Querist,
Lottery is governed under the Lottery Regulation Act 1998. There is no blanket ban on lotteries across the country and only 13 states in India allow the citizens to deal in lotteries. These are Kerala, Goa, Maharashtra, Madhya Pradesh, Punjab, West Bengal, Assam, Arunachal Pradesh, Meghalaya, Manipur, Sikkim, Nagaland, and Mizoram. So, if you reside within any state outside the states mentioned above, then it is not allowed and illegal to purchase or sell lottery in any form irrespective of the fact that whether you purchase international lottery or within your state.
As far as buying international lottery is concerned, it is governed by the Foreign Exchange Management Act,1999, along with the guidelines framed by the RBI from time to time because it involves a foreign transaction. Therefore, the RBI in the exercise of its power issued a circular dated 18.06.2002 clearly stated that "International Credit Cards cannot be used on Internet or otherwise for purchase of prohibited items, like lottery tickets, banned or prescribed magazines, participation in sweepstakes, payment for call-back services etc. since no drawing of foreign exchange is permitted for such items/activities"
Furthermore, SBI, the biggest and most trusted bank of India recently has clarified that in compliance with the RBI guidelines, the purchase of lottery tickets using credit cards is strictly prohibited.
Therefore, it is not permissible to buy international lottery tickets using an India Credit Card.
Regards
Nishanth 31 March 2020
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