Leader of Opposition H D Kumaraswamy said the Government has taken the issue raised by him "lightly".
He said Chief Minister Siddaramaiah has stated that this illegal business has not come to notice, while Home Minister K J George dismissed it as "rumours" but, nevertheless, had directed the police to conduct an enquiry.
Kumaraswamy said some families have gone bankrupt in Ramanagara district after being falling prey to the lottery.
Promoters of this lottery even publish the results in some publications and also send results to cell phones via SMSs. They sell fake tickets, cheating the public, he said.
He also alleged that a "collection racket" is underway under the Congress government, adding large-scale transfers are being made, particularly in Revenue department and PWD.