The three accused, all residents of Rajasthan, were arrested for selling fake lottery tickets of Arunachal Pradesh government and Bhutan government to the people of Jammu, Station House Officer (SHO) Bakshi Nagar, Ashwani Kumar said.
He said following a complaint by a local who was duped by the three, police laid a trap and busted the gang.
Initially, one of the accused was arrested and on his identification two others were also apprehended, Kumar said.
The accused, identified as Surinder Kumar, Subash Chander and Amit, have been booked under various sections of the Ranbir Penal Code (RPC), the officer said.