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Zee firm wins bid to conduct Karnataka online lottery

Bombay-based Ultra Entertainment Solutions Pvt Ltd, a Zee Group company, has won the bid to conduct
online lottery in Karnataka and will be investing Rs 5.37 billion to establish infrastructure in the state.

The state cabinet gave the green signal to Ultra, which will be investing Rs 3.37 billion in the first year and another Rs 2 billion later on, State Information Minister Shivanna told reporters.

Karnataka is now set to be the first state in India to start online lottery.

Ultra would set up 10,000 retail terminals in the state, generating 25,000 jobs to educated youth, the minister said.

The government would not be investing any funds in the venture. The state government would get a revenue of Rs 10.96 billion from this business over the next five years -- Rs 1 billion in the first year, Rs 1.40 billion in the second, Rs 1.96 billion in the third, Rs 2.75 billion in the fourth and Rs 3.85 billion in the fifth year, Shivanna said.

In sharp contrast, the state government's annual revenue by way of pre-printed paper lotteries was only Rs 100 million.

While Ultra's job would be to ensure connectivity -- through landline, satellite and VSAR -- to vend tickets and be a marketing agent, the State Government would control and manage the lottery.

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