Kerala govt's plan to hike lottery ticket prices to earn over ₹14,000 crore revenue concerns vendors

Kerala’s lottery department is reportedly planning to increase the ticket rate of daily lotteries, citing a shortage of tickets, but, a prominent section of lottery sellers is not happy about it. 

Kerala lotteries create a significant share of the state’s own non-tax revenue. From IGST collection from lotteries, too, the Kerala government earns a significant amount. The budget estimate for lottery revenue in 2025-26 is ₹14,121.14 crore—more than double the ₹6,366.70 crore projected in 2015-16.

Notably, the lottery directorate has long advocated increasing the face value of daily lotteries from ₹40 to ₹50. While a mere ₹10 hike could generate significant additional revenue for the state, the key question remains—who in Kerala's society will bear this cost?

Anoop, a former Kerala Lotteries bumper prize winner who later sold lotteries for a time, told THE WEEK that if the ticket price increases, the number of prizes and their value should also be adjusted. He added that the hike would severely impact street vendors. “Even selling a ₹40 ticket is a struggle for them. While big agents may not be affected, small-time sellers will find it extremely difficult.”

Kerala Lottery Agents and Sellers Association-INTUC state president Philip Joseph told THE WEEK that their union is preparing to protest against any move to increase the face value of lotteries. “The lottery business largely depends on ordinary people from the lower strata of society,” he said. “For many, it is their only livelihood. Right now, small retailers buy ₹40 tickets and try to sell them, often ending up with 5 or 10 unsold. Despite losses, many continue because even if a regular seller stops buying 50 tickets for a day, bigger agents may stop supplying to them.”

Notably, many lottery sellers point out that, in practice, there is no mechanism to return unsold tickets to the government. As a result, they bear the losses, not the government. With an increase in face value, the risk of higher losses also rises.

“Many retail sellers who incur losses today hope to turn a profit tomorrow, as their earnings depend on selling a minimum number of tickets. Currently, they are struggling even at ₹40. If the price is raised to ₹50, overall sales will decline sharply,” says Joseph. He also alleges that the state government is pushing for a price hike to benefit large-scale lottery operators who illegally sell tickets in neighbouring states, rather than supporting common vendors. Joseph added that protest demonstrations have been scheduled in all districts on April 5, with all trade unions—except CITU—opposing the move to increase ticket prices.

Notably, the shortage of tickets available to retail sellers is one of the reasons cited for considering changes to the existing structure. Reportedly, in addition to raising the face value, lottery authorities are also planning to restructure the prize mechanism by lowering the minimum prize from ₹100 to ₹50 and revising the prize distribution to ensure more people win.

“The shortage is due to a significant increase in the number of ticket sellers,” says Girish, a lottery seller from Moolamattam associated with CITU. “Earlier, there were only 10 to 20 sellers here. Now, that number has risen to 60 or 70, making it harder for workers to get enough tickets.”

Notably, a ₹50 lottery already exists, but the commission for sellers is lower compared to ₹40 lotteries.

Girish says that his personal opinion is that even if the face value increases, sellers should continue receiving a 12 per cent commission. However, he views the price hike positively. “Similar concerns arose when the price was increased from ₹30 to ₹40 and from ₹20 to ₹30. But within a month or so, sales picked up again,” he says. “As revenue grows, workers will earn proportionate commissions, easing their burden.”