An illegal betting operation known locally as “Kotu Kapima” has grown into a significant underground gambling network, with individual bets in some areas now reaching Rs 100,000 or more, a parliamentary oversight subcommittee has been told.
National Lotteries Board Chairman M.D. Cyril Anthony Perera raised the issue at a meeting of the COPE Subcommittee, warning of the scheme’s rapid expansion and its effect on individuals and families.
How the scheme works
Kotu Kapima involves betting on number combinations linked to the last two digits of government lottery results. Gamblers place bets on combinations using numbers from 0 to 9, with stakes varying widely depending on the location and scale of the operation.
Perera said what was once largely a village-level activity involving bets of around Rs 100 has developed into a far larger network. Ratnapura and several areas in the Eastern Province have become major centres for the activity.
He described the social impact as severe, saying its destructive effects on society are now second only to drug abuse. Authorities have received complaints of people diverting money intended for essential household expenses into the betting, in some cases leaving families without funds for basic needs after income and savings were spent.
Moving online
The operation has increasingly shifted into the digital space, with organisers using social media platforms and messaging groups to recruit gamblers and expand their networks.
Operators reportedly lure participants by claiming they hold advance information about winning numbers, or have access to predetermined combinations for government lotteries such as the Mahajana Sampatha. Some participants are encouraged to pay Rs 2,000 or more on the strength of such claims. Officials warned the claims are deceptive and can push gamblers to stake progressively larger sums.
A gap in the law
Perera said the National Lotteries Board is limited in what legal action it can take directly. The Board’s powers cover offences involving the manipulation, counterfeiting or misuse of official lottery results, while the wider betting operation falls outside the scope of the National Lotteries Act. He also pointed to the absence of the former Gambling Act as a further obstacle.
The chairman said the matter had previously been raised with the Police and the State Intelligence Service, but claimed significant action had not followed. It has now been referred to law enforcement and investigative authorities including the Central Anti-Corruption and Crime Investigation Division, with the Board working alongside the Criminal Investigation Department to pursue action against those involved.
