A lottery is a game where you buy a ticket and wait for a lucky draw, while a casino is a place with many games that mix luck and sometimes skill.
Lotteries and casinos are both types of gambling, but they work very differently under Indian law.
Both are allowed only in some states and under strict rules. This article will help you understand the differences, tax rules, and which one might be right for you if you choose to play at all.
Lottery vs Casino – Quick Comparison
Here’s how lotteries and casinos are different:
| Factor | Lottery | Casino |
|---|---|---|
| Type of Game | Only luck | Luck + skill |
| Who Controls | State government | Licensed companies |
| Legal in How Many States | 13 states | 3 states/UTs |
| How Often You Win | Very rare | Small wins often |
| Can You Control Result | No | A little (in some games) |
| How Much to Start | Low (₹20–₹100) | Medium to high |
| Risk Level | Low money, low chance | Higher money risk |
The main difference is that in lotteries, you have no control. In some casino games, you can use your brain to play better.
Lottery – Game of Luck
In a lottery, you buy a ticket with numbers printed on it. The government does a draw, and if your numbers match, you win.
You cannot change anything. Lotteries are allowed in India only because state governments run them or give permission under a law called the Lotteries Regulation Act, 1998.
To play the lottery legally in India, you must be at least 18 years old and be in a state where lotteries are allowed. Buy tickets from authorized government sellers only. Results are published on state lottery websites, newspapers, and official apps.
Casino Games
Casinos have two types of games:
Games based only on luck, like roulette, slot machines, and bingo. You cannot do anything to win, it’s all chance.
Games that need some skill, like poker and rummy. Here you make decisions and use planning.
The worldwide value of the lottery sector reached $225.76 billion in 2024; forecasts say $235.82 billion next year, rising to $343.11 billion by 2033, with average annual expansion near 4.8% through that period.
Which Is Better – Lottery or Casino?
There is no “better” choice when it comes to a lottery or casino; it depends on what you want and how much money you can risk.
The lottery is better if you:
- Want to spend very little money
- Want to try just once without playing again and again
- Are okay with very low chances of winning
- Don’t want to go anywhere or play often
Casino Is Better If You
- Want to play regularly for fun
- Want to know the results quickly instead of waiting for days
- Play games that require thinking, like poker or rummy
- Can control your spending and stop when needed
If you want to understand how casinos compare to other forms of gambling, read our detailed guide on betting vs casino.
Legal Status of Lottery vs Casino in India
The law for lotteries and casinos is completely different because different rules control them.
| Point | Lottery | Casino |
|---|---|---|
| Main Law | Lotteries Regulation Act, 1998 | Public Gambling Act, 1867 |
| Who Runs It | Only the state government | Private companies with license |
| Legal Online | Only if the state says yes | Only in very few states |
The table above talks about physical casinos. Online casinos where you play with real money are completely banned in India. Only state-approved lotteries can be sold online, and only within that state.
The question “is casino legal in India” is common, and the answer is complex it depends entirely on which state you’re in and whether you’re playing online or offline.
The central government gives some basic laws, like the Public Gambling Act from 1867, but each state decides if it wants lotteries or casinos. This is why something legal in Goa might be illegal in Tamil Nadu.
States Where Lottery Is Legal in India
Lotteries are legal in 13 states in India, but only when the state government runs them or gives permission. Main states where lotteries are allowed:
- Kerala (the first state to start government lottery in 1967)
- Maharashtra
- West Bengal
- Punjab
- Goa
- Sikkim
- Assam
- Arunachal Pradesh
- Mizoram
- Nagaland
- Madhya Pradesh
- Manipur
- Meghalaya
You can only buy lottery tickets from shops or websites approved by the government. Private lotteries are illegal everywhere in India.
Note: State rules can change. Always check the current rules in your state before buying.
Source: indiatoday
States Where Casinos Are Legal in India
Only three states and union territories allow casinos.
Goa allows casinos on boats in the river and in big hotels on land. These follow the Goa, Daman and Diu Public Gambling Act, 1976.
Officially, only tourists and people who don’t live in Goa can enter, though this is not always strictly checked.
Sikkim allows casinos in some special areas on land. The state also has rules for online gaming, but only people physically inside Sikkim can use these websites legally.
Daman allows casinos inside certain resorts. Like Goa, these are mainly for tourists and work under strict licenses.
For complete details about each state’s specific rules and regulations, check our detailed guide on casino legal states in India.
Tax on Lottery vs Casino Winnings (2026 Rules)
Both lottery and casino winnings are taxed heavily. The tax rules are the same for both.
| What | Lottery | Casino / Online Gaming |
|---|---|---|
| Tax Rate | 30% + 4% extra | 30% + 4% extra |
| When Tax Cuts | If you win above ₹10,000 | On total winnings |
| Can You Reduce Tax | No | No |
| Total Tax You Pay | Up to 42.74% | Up to 42.74% |
Tax is cut before you get your money. Even if you use your winnings to play again or lose money later, you cannot reduce the tax.
You must file an Income Tax Return (ITR) if your total yearly income is above the basic limit, even if tax was already cut.
Source: India Code, Income Tax India
Can You Play Lottery or Casino Online in India?
You can buy lottery tickets online only if your state government has an official website or app. Buying from other states’ websites or foreign websites is illegal.
Online casinos with real money are not legal in India, except in Sikkim, where the system makes sure only people inside the state can use licensed sites. Playing on foreign casino websites is risky and not protected by Indian law.
If you want to understand the specific legalities and what makes Goa different, we’ve covered everything, explaining whether Goa casinos are legal.
Conclusion: Lotteries Are Totally Different From Casinos
Lotteries and casinos are very different. Lotteries are cheap, rare games of pure luck run by state governments.
Casinos offer more games, including some where you can use skill, but you might spend more money, and they are legal only in Goa, Sikkim, and Daman. Both are taxed at 30% plus extra charges, with no way to reduce the tax.
If you want to play, first check if it’s legal in your state, understand how much tax you’ll pay, and only spend money you can afford to lose.
FAQs
Gambling is a broader term that includes lotteries, casinos, sports betting, and other games where you risk money.
A casino is a place where gambling happens. Gambling is the activity of risking money on games.
The biggest mistake is forgetting about taxes and spending all the money too fast. Bad money planning, telling everyone publicly, and buying expensive things without advice often create big problems.
Lottery is not illegal everywhere in India. It is illegal in states that have banned it with their own laws.
Lottery is legal in 13 states in India, but only when the state government runs it or gives permission.
