An illegal gambling operation based on winning numbers drawn by the National Lotteries Board (NLB) and Development Lotteries Board (DLB) has developed into a serious social crisis, NLB Chairman Cyril Anthony Perera has warned.
He made the remarks when officials of the two lottery boards appeared before a subcommittee of Parliament’s Committee on Public Enterprises (COPE).
Perera described the situation as extremely destructive, claiming its social impact was second only to drug abuse. He said the gambling scheme, locally known as “Kotu Kapeema”, had started in villages four to five years ago with bets as low as Rs. 100 but had since expanded significantly.
In high-income areas, he said, bets on a single “box” could reach as much as Rs. 100,000.
Under the scheme, gamblers select two numbers from zero to nine and place bets on the last two digits of the official lottery result announced that day.
Although the NLB and DLB conduct their lottery draws at around 7.30 p.m., those operating the illegal scheme allegedly spread false claims that all draws for an entire month are conducted in advance and released daily. The operation is reportedly coordinated through WhatsApp groups.
Perera said the size of bets varied according to economic activity in different areas. In paddy-harvesting areas such as Manampitiya, bets could reach Rs. 30,000 per box, while in gem-mining areas such as Ratnapura they could exceed Rs. 100,000.
He told the committee that some people had lost land and other property as a result of the gambling scheme, while the NLB regularly received complaints from women whose husbands had become addicted to it.
Complaints regarding the operation had been made to the Inspector General of Police, the State Intelligence Service and the relevant central crime investigation authorities, but appropriate action had yet to be taken, he said.
Perera further explained that the NLB’s enforcement powers under the National Lotteries Act were limited to legally authorised lottery operations, making it difficult for the institution to take legal action against the illegal gambling network without direct assistance from the Finance Ministry.
He warned that if the illegal gambling operation continued to expand, it could threaten both the viability of the state lottery boards and the livelihoods of those affected by the scheme.
