The only form of gambling allowed in this Indian state is based on dreaming

Teer is the only legal form of gambling in this state.

Shillong, India (CNN)A retired employee of the Indian Air Force, Tej Gurung now spends his days at the archery shooting ground in the city of Shillong, in northeast India.

The 80-year-old grandfather goes there to play teer, the only legal form of gambling in Meghalaya state.
But this isn't like betting on a normal sport. Wagers in teer are based on the world of dreams.
    The game works like this: Squatting in a semi-circle with their bows, 20 or so archers engage in a 10-minute firing frenzy, trying to hit a bundle of straw about 50 meters (164 feet) away from them as many times of possible.
    For 10 minutes, teer archers attempt to hit a single straw bale about 50 meters away.
    Players bet on how many arrows will end up in the bale, choosing a number between 0 and 99 which represents the last two digits of the total number to find their mark. For example, if 453 arrows hit the bundle, everyone who chose 53 wins a payout.
    It's a game of chance, but it is guided by the belief that the winning numbers appear in the dreams of players, who use a local system to translate images into numbers.
    After each session, the arrows are counted to determine the winning numbers.
    "A corpse, doctor and a person wearing a police uniform would all indicate the number 9," explains Loknath Khannal, a Nepali local who has been selling tickets at a Teer counter for 30 years. A dog or a cow would mean the number 4, he adds.
    Gurung says he has been most lucky when being guided by his dreams, recalling a bet he placed on 12 after that number came to him in his sleep. He put on 5,000 rupees ($70) at various counters around town because most limited bets to 1,000 rupees ($14).
    "I played a single number 12 on the first round and won," he said. "I don't remember how much I made in total, but for a 500 rupee bet, you win 40,000 rupees. So you can only estimate how much."
    No one knows exactly how the ancient sport of archery evolved into a lottery, but it's so popular that people in neighboring states are dialing in bets and pocketing payouts.
    Archers reclaim their arrows at the teer shooting ground in Shillong, India.

    Archers earn a small fee

    Teer, which means "arrow" in Hindi, has been around for about as long as the state of Meghalaya, which was carved out from Assam in 1972 and includes Khasi, Garo and Jaintia Hills, former kingdoms that came under British rule in the 19th century.
    British colonial leaders once called the capital, Shillong, the "Scotland of the East," because of its wet climate, hilly topography and typical overcast gloom.
    The state's three main indigenous tribes from these kingdoms were largely converted to Christianity by missionaries during British rule, making Meghalaya one of the few states in India that's predominantly Christian. Tourism and mining of mineral resources, such as coal and limestone, are the main drivers of the state economy. But Meghalaya still ranks among the lowest in India in terms of its Gross State Domestic Product (GSDP) and life expectancy, education levels and overall standard of living.
    Gurung has been playing Teer for the past 40 years, but it has only been legal since 1982, when the Meghalaya government decided to lift it out of the shadows to make some tax revenue. Now, every ticket seller -- or counter operator -- pays a 10% cut to the government, on top of the archers' salaries and other operating costs.
    Gamblers place bets on the last two digits of the number of arrows that hit the bale in the 10-minute period.
    The archers, registered with one of the 12 neighborhood clubs in the Khasi Hills Archery Association, treat their earnings like extra cash since they are normally either formally employed or run a teer counter. Michael Shaibor, a 24-year-old archer who had been shooting for seven years, says he makes about 300 to 400 rupees ($4 to $5) a day, for about three hours work. "It's not bad," he says.
    Bets come in five categories: single (0 to 9), house (10 to 19, 20 to 29), ending (last digit), and pair (11, 22, 33, 44) to the high-stakes forecast, which means guessing the exact numbers in both rounds on a single day. Players make their wagers at counters around town, which have varying limits for the jackpot.
    Chandra Kumari, a Nepali local, says she occasionally plays for small sums of 10 or 20 rupees. Others spend a lot more.
    "There are about 500 to 600 counters and an almost unlimited number of bookies in Shillong alone, where the bets can go up to Rs. 5 crores on a single day," said a bookie in Shillong, who asked not to be named as several bookies operate without a license.

    Women in the game

    Meghalaya is not only unique for allowing its citizens to legally gamble on Teer.