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The allocation does not come straight from the state's sports betting tax revenue. The S.G.I.-supported initiatives also mandated tight timelines for the bidding process, providing the company a arranging edge although producing it practically impossible for any individual else to total the paperwork in time. Lotteries are particularly excluded from the ambit of gambling through the states' gambling acts. Until 1998 there was no law with respect to regulation of lotteries. Parliament enacted the Lotteries (Regulation) Act 1998 with the object of regulating lotteries, and to provide for matters connected therewith and incidental thereto. On 1 April 2010, the government of India issued the Lotteries (Regulation) Guidelines 2010, additional regulating the lotteries in the country with regards to quantity of draws, minimum prize payout, and so forth. After the promulgation of the Constitution of India and its coming into effect on 26 January 1950, the concerns pertaining to gaming have been divided. Betting and gambling had been listed beneath Entry 34 of the State List (i.e., List II of the Seventh Schedule).

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