Maha govt forms panel to study Kerala model to boost revenue from state lottery system

The Mahayuti government on Monday established a 10-member committee headed by former finance minister and a senior BJP leader Sudhir Mungantiwar to conduct a study tour of the Kerala State Lottery and make recommendations on how the state can increase the revenue of the Maharashtra State Lottery.

The committee, which comprises legislators of ruling and Opposition parties, will submit its report to the state government within a month.

Mungantiwar during the Budget Session held in March this year had raised the issue of the low turnover of the Maharashtra Lottery System compared with the Kerala lottery.

He had suggested that the government can increase the revenue from the lottery system on the lines of Kerala.

Deputy Chief Minister and Finance Minister Ajit Pawar had announced in the state Assembly that the government would set up a Mungantiwar-led committee to study the operations of the Kerala lottery system and its revenue model.

The government on Monday issued a formal notification on the Mungantiwar-led committee.

Maharashtra's lottery system, operational since 1969, currently runs 15 different lottery schemes.

Mungantiwar however, had called for a detailed study of the revenue generated by the lottery department, highlighting that the state's earnings are significantly lower compared to other states.

In the financial year 2023-24, Maharashtra earned Rs 24.43 crore from lottery sales. However, after deducting prize money, GST, and other taxes, the state's net income was only Rs 3.52 crore.

Mungantiwar had questioned why Maharashtra was not maximising its lottery revenue, especially when states like Kerala and Sikkim were earning thousands of crores from the sector.

Mungantiwar assailed the regulatory disparity saying that if Maharashtra allows paper lotteries, other states should permit Maharashtra's paper lotteries in their regions.

He also stressed that if Maharashtra lacks an online lottery system, other states shouldn't operate online lotteries here. Despite this, states like Kerala and Sikkim continue selling online lotteries in Maharashtra.

"Kerala, with a population of just 3 crore has successfully generated Rs 12,529 crore, while Maharashtra, with over 11 crore people, strives to generate even a fraction of that amount. Maharashtra could earn around Rs 25,000 crore if the Kerala model is emulated," said Mungantiwar.

He argued that the government should explore various options to mobilise additional revenue instead of citing the revenue deficit of Rs 45,891 crore projected during 2025-26.

Additionally, Kerala has linked its lottery revenue to social welfare schemes for the handicapped and Economically Weaker Sections, ensuring that the money benefits those in need. Mungantiwar appealed to the Maharashtra government to adopt a similar approach.

(Sanjay Jog can be contacted at sanjay.j@ians.in)