TRIVANDRUM, 26 January 2005 — Tens of thousands of people engaged in selling lottery tickets have lost their livelihood in Kerala after the state government put a blanket ban on the gambling.

The Kerala Cabinet took the decision yesterday after the Supreme Court chided the state for not following its directives.

“We were left with only two options before us, either to allow all or ban the entire trade. We chose the second option as gambling has become a major social evil that destroys many a family,” Chief Minister Oommen Chandy said after a meeting of his Cabinet.

The ban took effect by the evening after the last draw of the state government’s two-million-rupee weekly Periyar lottery at 2.30 p.m.

Chandy said the finance department would formulate a rehabilitation package for the disabled and other destitute people who were living by selling lotteries.

The state government launched its lottery in 1967 for funding health services and it was the second largest source of tax revenue for the state government. According to the official data, there are 30,000 registered agents and more than 200,000 sellers in Kerala.

“Vast majority of these people are disabled or orphaned women and children who have no place to go,” All Kerala Lottery Vyapari Agents and Sellers Association President R. Satish Kumar said.

He later led a protest march on the state secretariat. “There will be an indefinite agitation if the government does not reverse its decision,” he added. In 2003-04, the lottery industry registered a turnover of 60 billion rupees. The state government collects 20 percent tax on the turnover.

During this period, the government sold tickets worth around 1.317 billion rupees with a net profit of 134.5 million rupees.

At the Global Investor Meet held in 2003, the state government had presented its own project of online lottery. It shelved the idea fearing stiff competition from private companies.

The chief minister said employees at the department of lotteries would be transferred to other government departments. They have been asked to reimburse the price of tickets for the draws scheduled for coming dates.

He said the state government would continue to argue in the Supreme Court for a ban on online lotteries and paper lotteries from other states that violate the rules. “If we win the case, we would reconsider today’s decision,” he said.

In the Supreme Court, State of Meghalaya argued that Kerala had defied the court orders. A batch of writ petitions were filed in the Kerala High Court challenging Kerala State Lotteries and Online Lotteries (regulation) Rules that argued that the state government has no power to frame such rules as the subject fell in the federal list. They approached the Supreme Court after the high court dismissed the petitions.

The Supreme Court made it clear that Kerala should obey its order against banning lotteries of other states and purge itself of the contempt.