Kerala State Lotteries: an economic and financial evaluation

Abstract

Kerala state lottery has been inexistence for the past 40 years. Started in the year 1967 it has been providing employment to more than three lakh people in addition to nearly 500 people directly employed in the Department of Kerala State Lotteries. All activities connected with the lottery, starting from printing of tickets to distribution of prize amount is controlled and transparent. Sale of tickets has increased from Rs20 lakh in 1967-68 to Rs130 crores in 2003-04. Profit from lotteries to the government of Kerala also has increased from Rs14 lakh in 1967-68 to Rs9.4 crores in 2003-04. Again nearly Rs2 crores remain unclaimed of the prizes. These being the circumstances this study was made with the following objectives. a) to examine the performance of Kerala state lottery. b) to examine the extent of employment and income generated by Kerala state lottery. c) to assess the nature of prize money utilisation. The study was based on field research and made use of both primary and secondary data. Primary data were collected from 300 ticket buyers spread over 3 different regions three districts (Thiruvananthapuram, Thrissur, and Kannur) of Kerala. Data also were collected from 150 persons engaged in the sale of Kerala state lottery tickets and 90 prize winners of large amounts, from the three regions. Interviews were conducted with officials in the Department of State Lotteries, officials of the Kerala State Lottery Agents Association and a few public personalities. Secondary data were collected from the Department of Kerala State Lotteries. Audited income and expenditure statements for three years from 2001 to 2004 were collected. Both primary and secondary data were analysed using proper tools and techniques. The major findings of the study were: a) Kerala state lottery is providing significant employment. b) The contribution made by lottery to state exchequer is not large. c) Almost all persons related to Kerala state lottery are satisfied with its performance.