the Supreme Court held that it was constitutionally valid to discriminate between online and paper lotteries as two distinct classes of lotteries in terms of the Lotteries (Regulation) Act and therefore, a state government may ban online lotteries regardless of the fact that it may be conducting paper lottery schemes. The Supreme Court observed that as long as a state does not itself conduct a particular class of lotteries, it may ban within its territory that class of lotteries conducted by other states.

2) In states like Madhya Pradesh ,Tamil Nadu ,Kerala lotteries are banned 

As per RBI regulations online lotteries are offence. But foreign lotteries function in India Without any impediment

Dear Client,

In some states, the state government have have banned online lotteries but in others they are not banned and can run. If you want to start a business like that consult a lawyer for the terms and conditions and other sensitivities for in-depth knowledge.

Thank you

For players, online lottery is completely legal in india on Indian lottery websites and international websites. 

Land-based lotteries- Allow in 12 states, West Bengal, Maharashtra, Kerala, Punjab, Madhya Pradesh, Sikkim, Goa, Assam, Arunachal Pradesh, Meghalaya, Manipur and Nagaland.

Lottery is illegal in the other 16 Indian states.

Playing the lottery online with a foreign based provider such as Lottoland is not illegal.

International lotteries are not subject to the usual Indian gambling laws as the draws take place outside the country allowing residents of all Indian states to play regardless of the gambling laws in any particular state.

Online lottery is not illegal in India and was obviously never referred to in the Public Gambling Act of 1867. Although some states have specifically legalised online lottery sales through the state provider most Indian state legislation does not specifically refer to online lottery ticket sales. Most states do say that lottery ticket sales are limited to official state providers for companies based within India.

Every person who promotes or conducts a prize competition in accordance with the provisions of prize competition Act and the rules made thereunder shall keep accounts relating to such competition and submit to the licensing authority a statement of accounts in such form and at such intervals as may be prescribed.

2)

For players, online lottery is completely legal in India on Indian lottery websites and international websites. 

You want to conduct a lottery online in India, which may not be permissible. 

However land based lotteries are allowed in around 12 states in India, you may try to indulge in the said business in one of the states where it is permissible.

It's not illegal if you don't play it on indian soil. Even if if you purchase it by other currency you may be held liable if the same is done from India. But in practice nothing happens this business is rampant all over india

Dear Client,

Lottery is not illegal in India as each state determines whether or not to legalise lotteries. 13 Indian states have legalised the lottery including Assam, Arunachal Pradesh, Goa, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim and West Bengal.