Taxing Lottery I

Section 2(b) of The Lotteries (Regulation) Act, 1998 defines, ‘lottery’ means a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in chances of a prize by purchasing tickets. State of Bombay v. R.M.D. Chamarbaugwala, AIR 1957 SC 699 had occasion to consider nature of activities akin to lottery, betting and gambling. Sunrise Associates v. Govt. of NCT of Delhi, (2006) 5 SCC 603 has laid down, lottery is an actionable claim. The observation cannot be said to be obiter dicta. The submission, there is hostile discrimination in taxing lottery, betting and gambling and not taxing other actionable claims, is not accepted.

Hon’ble Justice Ashok Bhushan, Skill Lotto Solutions Pvt. Ltd. v. Union of India, [Writ Petition (Civil) No. 961 of 2018].