In terms of Section 5 of the FEMA, persons resident in India 1 are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by Central Government, such as remittance out of lottery winnings; remittance of income from racing/riding, etc., or any other hobby; remittance for purchase of lottery tickets, banned / proscribed magazines, football pools, sweepstakes, etc.; remittance of dividend by any company to which the requirement of dividend balancing is applicable; payment of commission on exports under Rupee State Credit Route except commission up to 10% of invoice value of exports of tea and tobacco; payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies; remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme and payment related to “call back services” of telephones

The Reserve Bank of India in paragraph 3, of its Circular AP(DIR Series) No.19 dated October 30, 2000, had indicated that Credit Cards, ATM Cards and Debit Cards etc, being only different methods of payment, all Rules/Regulations and directions issued under the Foreign Exchange Management Act, 1999 (FEMA), apply to Credit Cards, Debit Cards and ATM Cards etc. also.

With a view to clarifying the permissible uses of International Credit Cards on Internet, it is clarified that :-

1. International Credit Cards can be used on Internet for any purpose for which exchange can be purchased from an Authorised Dealer in India, e.g. for import of books, purchase of downloadable softwares or import of any other item permissible under EXIM Policy.

1. International Credit Cards cannot be used on Internet or otherwise for purchase of prohibited items, like for purchase lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call-back services etc., since no drawal of foreign exchange is permitted for such items/activities.

1. There is no aggregate monetary ceiling separately prescribed for use of International Credit Cards through Internet.

It is further clarified that Debit Cards and ATM Cards can also be used for any purpose for which foreign exchange can be purchased from an Authorised Dealer in India.

Authorised dealers are also permitted to accept payment by debit to credit cards for exports made out of India. Guidelines for the purpose are being issued separately by the Reserve BaNk

Have answered both your queries 

Yes remmitance through lottery and cheap finds are impermissible as per fema regulations. But such lotteroes are operating in India through many websites

1. Yes, there is no prohibition of purchasing online lottery ticket of a foreign country.

2. However the credit cars are used only for purchase of domestic product and not for international purchase from India.

3. However at the time buying the foreign lottery ticket you were present on the foreign soil as well, then you can use the same credit card.

online lottery will not be a problem as there are

number of website that allows users to register

around the globe.

However adding and withdrawing funds might

cause an issue.

Also what will be the returns? How many tax

would the lottery website might charge? Again in

India if you win money from lottery you need to

pay tax to Indian government in form of tax.

Dear sir,

Yes, For players, online lottery is completely legal in india on Indian lotterywebsites and international websites. ... Land-based lotteries- Allow in 12 states, West Bengal, Maharashtra, Kerala, Punjab, Madhya Pradesh, Sikkim, Goa, Assam, Arunachal Pradesh, Meghalaya, Manipur and Nagaland.

Credit card company may have barred for such transactions,  you can do online transfer. Even in few states in India local lottery is permissible.

Schedule is silent on lottery purchase. 

This is legal in India but required on line transaction so bank comes in the picture but they can't decide the credit card transactions so protest to the branch where you account is. 

International lotteries are not subject to the usual Indian gambling laws as the draws take place outside the country allowing residents of all Indian states to play regardless of the gambling laws in any particular state.Indian citizens are free to win huge prizes thanks to international lotteries online.

Once you win the lotto, the money is transferred to the registered bank account inIndia. You can play the Powerball in the US, EuroMillions and MegaMillions. Apart from the big lottery games, you can also play scratch cards and other online games, all giving out large prize

 if you win money from lottery you need to pay some percentage to Indian government in form of tax.

That is law of the land.

There has to be some control over such transactions hence it has been mandated that way.

 you can purchase Bhagyalakshmi lottery anywhere in world but you should have in credit or debit card,if even you have online transfer access then also you can play

1. As per the information mentioned in the present query, makes it clear that you wish to know the goods and bads of buying international lottery tickets online.
2. I would like to inform you that you are very much in legal ambit if you go for the same as per the same act which  you have mentioned above.
3. It is legal, but with subjects to the provision and stipulations our in the large part of the sections.
4. And there is nothing to be done with your credit card decline payment, it might be because of some reason.

Dear Sir,

If you wish to invite risk then you are at free to participate in International online lottery.