Directorate of Punjab State Lotteries came into existence in the year 1968 as a wing of the Finance Department with a view to curbing illegal activities of satta, matka etc and to organize lotteries at regular intervals, so as to mobilize resources for the State Exchequer. The total staff strength of the department is around fifty.

The Government of Punjab  runs its lotteries strictly as per the provisions of the Lotteries (Regulation) Act 1998. Under Section 12 of the Act, the department had framed its Rules i.e. Punjab State Lotteries Rules 1998.

The Directorate of Lotteries is located at Chandigarh but the draw hall of Punjab State Lotteries is housed in the Zila Parishad Building at Ludhiana.

Draws of the weekly lotteries, as also the monthy lottery, are conducted in a transparent manner in the draw hall at Ludhiana.  Any member of the public is free to visit the draw hall and view the draw process.  The Directorate appoints judges from among the respectables members of the public, to be present for each draw, besides deploying its own staff in order to ensure fair play.

The main motive of the Government of Punjab in regulating the Lotteries is :-

Punjab State Lotteries enjoys the confidence of the public at large on account its regulated and transparent conduct of draws and assured and timely disbursal of prizes.