The Congress-led Himachal Pradesh government under Chief Minister Sukhvinder Singh Sukhu has taken a major policy decision to mitigate the state's severe financial crunch. After a long gap of nearly 27 years, the process to reactivate the state lottery system has been officially initiated. The Directorate of Treasury, Accounts and Lotteries has issued an e-tender to select a Sole Selling Agent tasked with managing the distribution, sales, and operations of both paper and online lotteries across the state. The sale of lottery tickets has not commenced immediately; rather, ticket availability will follow the completion of the bidding process, formal contract awarding, and statutory compliance.
Revenue Targets and State Fiscal Distress
Himachal Pradesh is currently burdened with a total public debt exceeding ₹1 lakh crore. In light of these mounting financial obligations, the state administration has been actively exploring non-tax revenue avenues to sustain developmental projects and administrative overheads. By reintroducing state lotteries, the government targets an annual revenue generation of approximately ₹50 crore. To support this policy decision, state officials have cited successful lottery models in other Indian states such as Punjab and Kerala, where state-run lotteries contribute significantly to the public exchequer.
Financial Criteria and Obligations for the Sole Selling Agent
The state finance department has outlined stringent financial criteria for the company seeking appointment as the Sole Selling Agent. The selected operating entity must pay a fixed annual license fee of ₹10 crore to the state government, subject to a mandatory 5 percent annual escalation. Additionally, the agent must guarantee a Minimum Guaranteed Amount of at least ₹6 crore per year.
Bidding companies are required to offer a revenue share of at least 2 percent on the total gross turnover of the lottery business. To ensure financial performance and regulatory compliance, the successful bidder must deposit a security performance guarantee of ₹30 crore in the form of an irrevocable bank guarantee or Fixed Deposit Receipt (FDR). Participating firms are also required to deposit an Earnest Money Deposit (EMD) of ₹2 crore along with a non-refundable tender fee of ₹5 lakh.
Tender Schedule and Proposed Diwali Bumper Draw
According to the official timeline published by the Directorate, the e-tender notice was notified on 21 August 2026. Online bid submissions will open on 3 September 2026 and close on 14 September 2026. The technical evaluation of submitted bids is scheduled for 15 September 2026, while the date for opening financial bids will be announced separately.
The awarded agency will receive its official letter of award within 30 days of the financial bid opening. If the selection process progresses as scheduled, the state government intends to organize its first major bumper lottery draw around the upcoming Diwali festival. Tickets will be accessible both offline through registered vendors and digitally via dedicated web portals and mobile applications.
Lottery Rules 2026 and Daily Operational Limits
To establish a legal and supervisory framework for the operations, the state government has framed and notified the Himachal Pradesh State Lottery Regulation Rules-2026. Under these provisions, the minimum ticket price can be fixed as low as ₹2 to enable broad public participation. The rules stipulate that a maximum of 12 regular lottery draws may be conducted on any single calendar day.
In addition to regular daily draws, the framework permits up to three major bumper draws annually, aligned with major festive periods such as Diwali, New Year, and prominent regional celebrations. However, the regulations strictly mandate that no lottery draws shall take place on national holidays, specifically 26 January (Republic Day), 15 August (Independence Day), and 2 October (Gandhi Jayanti). To maintain complete financial transparency, the agent must establish a Special Purpose Vehicle (SPV) to maintain a complete digital audit trail of all transactions and sales records.
Historical Background of the 1999 Lottery Prohibition
State-run lotteries have a prior history in Himachal Pradesh, operating continuously until 1999. In 1999, the Bharatiya Janata Party government led by then Chief Minister Prem Kumar Dhumal abolished state lotteries. The prohibition was instituted following widespread public complaints regarding social harm, financial distress among low-income households, and instances of fraudulent practices in ticket distribution. After 27 years, the current administration has decided to reverse the ban to address state fiscal deficits.
Political Backlash and Opposition Demands
The decision to restart state lotteries has sparked intense political debate in Himachal Pradesh. The opposition Bharatiya Janata Party has strongly condemned the move. Anurag Thakur, former Union Minister and current Member of Parliament from Hamirpur, has written a letter to Chief Minister Sukhvinder Singh Sukhu demanding an immediate cancellation of the lottery tender.
Anurag Thakur stated that resorting to lottery sales does not offer a sustainable financial solution to the state's economic difficulties and risks burdening vulnerable citizens. He urged the state administration to focus on strengthening GST compliance, curbing tax evasion, and enhancing revenue collection through digital systems rather than relying on state lotteries.
