Online lottery agents of the Indian State of Sikkim have challenged the ban on online lotteries by another state, Kerala, in Southern India.

The Kerala High Court was informed by the Kerala State Government that legal ban on online lotteries and the lifting of the ban on paper lotteries were in conformity with the national laws.

The Kerala government argues that online lotteries do not have the characteristic features of a (paper) lottery as defined by the Lotteries (Regulation) Act and are therefor forbidden.

According to the Kerala government, states that do allow online lottery operators are cheating the public as there is no proper regulatory system for online lotteries.