The issue was highlighted during a meeting of the CoPE Subcommittee, where National Lotteries Board Chairman M.D. Cyril Anthony Perera warned about the rapid expansion of the illegal betting operation and its impact on individuals and families.Kotu Kapima involves betting on a number of combinations linked to the last two digits of government lottery results. Gamblers can reportedly place bets on combinations involving numbers from 0 to 9, with the amounts varying significantly depending on the location and scale of the operation.

According to Perera, what was once largely a village-level activity involving bets of around Rs. 100 has developed into a much larger underground gambling network. In some areas, individual bets on a single combination are now reportedly reaching Rs. 100,000 or more.Ratnapura and several areas in the Eastern Province have reportedly become major locations for the activity.Perera described the social impact of the illegal betting as severe, saying its destructive effects on society are now second only to drug abuse. He warned that the continued expansion of the operation could cause serious financial hardship and threaten the livelihoods of vulnerable families.

He said authorities had received complaints about people diverting money intended for essential household expenses into illegal betting. In some cases, families have reportedly been left without sufficient funds for basic needs after household income and savings were spent on gambling.The operation has also increasingly moved into the digital space. Perera said organizers are using social media platforms and messaging groups to attract gamblers and expand their networks.Operators reportedly attempt to lure participants by claiming that they possess advance information about winning numbers or have access to predetermined combinations for government lotteries such as the Mahajana Sampatha. Some participants are allegedly encouraged to pay Rs. 2,000 or more based on such claims.

Authorities have also raised concerns about the deceptive nature of these claims, warning that gamblers may be persuaded to place increasingly larger amounts of money in the belief that they have access to guaranteed winning numbers.Perera said the National Lotteries Board faces limitations in taking direct legal action against the scheme. He explained that the Board’s legal powers primarily cover offences involving the manipulation, counterfeiting or misuse of official lottery results, while the wider illegal betting operation falls outside the current scope of the National Lotteries Act.He also pointed to the absence of the former Gambling Act as another legal challenge in dealing with the practice.

The Chairman said the issue had previously been brought to the attention of the Police and State Intelligence Service, but claimed that significant action had not been taken.Given the limitations faced by the National Lotteries Board, the matter has been referred to relevant law enforcement and investigative authorities, including the Central Anti-Corruption and Crime Investigation Division. The Board is also working with the Criminal Investigation Department and other agencies to pursue legal action against those involved.

Perera said that the National Lotteries Board cannot resolve the problem on its own and called for urgent government intervention, including support from the Ministry of Finance to strengthen the legal framework and provide authorities with the necessary powers to tackle the illegal operations.He warned that if the trend continues unchecked, it could seriously damage the livelihoods of the public and threaten the operations and revenue of the country’s legitimate lottery institutions, including the National Lotteries Board and Development Lotteries Board.