Government today said it chose to regulate lotteries trade rather than banning it outright due to lack of political consensus over the issue.

Home minister P Chidambaram said in the Rajya Sabha a high-level Study Group has recommended setting up of a regulatory body to redress disputes relating to lotteries both at the Centre as well at the state level.

It has also called for a model agreement between the Centre and the states for paper and online lottery after consultations with the law ministry.

Seeking withdrawal of The Lotteries (Prohibition) Bill, 1999, Chidambaram said, "It was felt that there is no possibility of evolving a political consensus on imposing a complete ban on the lottery trade in the country..."

The Bill, introduced in the House over 10 years ago, was later withdrawn. It had sought a complete ban on lotteries by the central or state governments or any other organisation or society.

However, a number of state governments had opposed the move. Most of the states running lotteries except Tripura were of the view that lotteries should not be banned but better regulated.

Later a Study Group comprising representatives of the Centre and states recommended that lotteries should be regulated rather than banned.

Recognising the immediate need to regulate the trade, the government has already incorporated changes in rules in the existing Lotteries (Regulation) Act, which have been notified from April 1 this year.