In 1967, private lotteries were banned across India, leading to the introduction of government-regulated lottery systems. This initiative was pioneered by the then Finance Minister, P. K. Kunju, who had prior experience managing lottery operations as the chairman of the Kayamkulam MSM Trust. Drawing from his expertise, he envisioned a transparent and state-controlled lottery framework that could serve both economic and social purposes.

The primary objective behind launching government lotteries in India was to generate additional revenue for the state without placing any extra financial burden on the public. At the same time, it aimed to create large-scale employment opportunities, especially for individuals involved in ticket distribution, sales, and related operations.

Over time, this initiative proved to be highly successful and became a model for other states across the country. Inspired by its effectiveness in boosting state finances and supporting livelihoods, several Indian states adopted similar lottery systems, making government lotteries an important supplementary source of income and employment nationwide.