IPC 294A Keeping lottery office

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Section 294A. Keeping lottery office-

“Whoever keeps any office or place for the purpose of drawing any lottery not being a State lottery or a lottery authorizedby the State Government, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine, or with both. And whoever publishes any proposal to pay any sum, or to deliver any goods, or to do or forbear from doing anything for the benefit of any person, on any event or contingency relative or applicable to the drawing of any ticket, lot, number or figure in any such lottery, shall be punished with fine which may extend to one thousand rupees.”

The lottery and gambling are prohibited by law because they both encourage the circulation of money by chance. The reason for this is, of course, the importance placed on chance, as well as the encouragement provided to the desire to waste money. They are also opposed to honest labour and industry, which are necessary for the happiness of society and individuals. In both lottery and gambling, there is chance, but gambling denotes the playing of a game at which participants are present, whereas in lottery, such participants need not be present. In gambling, there may be a demonstration of skill, such as when throwing dice or other similar games.

This clause is only intended to prohibit unlicensed lotteries, and it does so in two ways: (1) by punishing the maintenance of offices or places where they are drawn, and (2) by punishing the publication of any advertisement connected to them.

A lottery is a game of chance in which the winning or losing of the absolute right to the prize or rewards by the participants is entirely based on the drawing or casting of lots. It is the risking of money on a contingency or an uncertain event that will be made certain through a lottery or by chance. The fact that it requires some skill does not make it any less of a lottery if the likelihood of winning a prize is decided more by chance than by skill.

However, it will not be regarded a lottery if two or more people enter into an arrangement to pay subscriptions to one another, which is then settled by casting lots. The arrangement was held not to be a lottery when, for example, 20 people agreed to pay200 each in monthly payments of10 on the condition that each individual take the entire subscriptions for a month in turn by lot. Because such a transaction is free of the risk, speculation, and uncertainty that render lotteries void, it has been deemed to be a good contract, untouched by the restrictions of this section.