You appear to be describing a **rotating savings and credit association** (ROSCA) (references: [Wikipedia][1], [Investopedia][2]). These are not usually set up as a "game", but as an informal financial institution that acts as an alternative to banks (ask your colleagues to ascertain this). In effect, **the winner of the lottery is given a loan** (not a lottery prize or free money).

ROSCAs are useful in communities that have limited access to banking services (e.g. remote areas, places with underdeveloped banking systems, etc.). These associations are based on social trust.  Note that lotteries are not a necessary feature of these associations. The recipient of funds could be chosen using a circular queue, or based on submitting a loan application, or using a lottery, etc.

> Is money rotation a profitable game?

i.e. How much money can I earn from my "deposits" in a ROSCA?

First, let's prioritize the preservation of capital instead of the potential for profit. ROSCAs are based on social trust among the association's members. If you don't trust the other members, then don't join. If you intend to scam the other members by deliberately stopping your contributions once you get your "loan", then please don't join. If you have access to reliable banking services, then putting your deposits in the bank may be a much safer choice.

If you want to get higher interest on your deposits, you will need to evaluate the situation of ROSCAs vs banks. This is highly dependent on the rules and members of the ROSCA in question. You will need to balance the risk of loss of principal (presumably higher in ROSCAs) vs the interest rates offered. There's no point in accepting a minuscule increase in the rate of return if the risk of loss of principal becomes unacceptably high.

> On other hand if I don't participate in this game and deposit Rs 1,00,000 in FD for one year, I will earn an interest of Rs 6,500. What is the maximum possible profit I can get from money rotation game?

For the ROSCA described in your question, there will only be 9 lotteries. Every "lottery" after the 9th lottery will only have one participant, since the other 9 participants are not allowed to participate in the 9 months after their "win" in the lottery. Starting on the 10th month, the scheme becomes a fixed queue. If you play fairly, the maximum profit is zero because no interest is paid (you contribute $X for 9 months, and withdraw exactly $9X on the 10th month). Since you are looking for profits, you will be better off with the FD.


  [1]: https://en.wikipedia.org/wiki/Rotating_savings_and_credit_association
  [2]: https://www.investopedia.com/terms/r/rotating-credit-and-savings-association.asp