Taxing Lottery II

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].