Taxing Lottery II

Posted on by Rudrajyoti Nath Ray

It is evident, lotteries and gambling activities, to be termed as such, must inherently have an element of ‘chance’; ‘to take a chance’ is itself synonymous to a ‘gamble’;  therefore, it may be concluded, lottery is one such activity which requires a participant ‘to take a chance’ or to ‘gamble’.

B.R. Enterprises v. State of Uttar Pradesh, (1999) 9 SCC 700 held, lotteries are a form of gambling. Skill Lotto Solutions Pvt. Ltd. v. Union of India, 2020 SCC OnLine 990 is recent. It was held, Sunrise Associates v. Govt. of NCT of Delhi, (2006) 5 SCC 603 has laid down, lottery is an actionable claim and same was not an obiter dicta.  

What emerges from discussion of decisions of this Court is, lotteries are a species within genus of gambling; one essential feature of a lottery is its inherent gambling nature; it is not in dispute, a scheme of lottery is a form of gambling.

– Hon’ble Justice B.V. Nagarathna, State of Karnataka v. State of Meghalaya, [Civil Appeal Nos. 10466-10476 of 2021].

Lottery

Recently, this Court in K. Arumugam v. Union of India, 2024 SCC OnLine SC 2278 observed, conducting a lottery which is a ‘game of chance’ is an ‘activity’ conducted by State and not a ‘service’ being rendered by State which would enable engaging of an agent.

– Hon’ble Justice B.V. Nagarathna, Union of India v. Future Gaming Solutions Pvt. Ltd., [Civil Appeal Nos. 4289-4290 of 2013] decided on 11.02.2024.

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'The Last Word' seeks to include not only wise and witty sayings but also curiosities. These words are not of obligation but of delight. I am not alone in my refusal to believe, law is tedious. For all who escaped these percipient eyes, mea culpa maxima. History, after all, has many cunning passages, contrived corridors and issues.