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State Legislatures have the power to tax lotteries organized by other states: SC

  • Posted By
    10Pointer
  • Categories
    Polity & Governance
  • Published
    25th Mar, 2022

Context

State Legislatures have the power to tax lotteries organized by other states, as per the recent Supreme Court judgment. 

Key-highlights of the Judgment

  • The State Legislature has the competence to tax lottery scheme which is gambling being conducted not only by the Government of India or the Government of any State or by any other agency or instrumentality of a particular State but also by a private entity within the State as gambling.

Important facts about lottery in India

  • The lottery is largely legal in India as there is no blanket ban.
  • Currently, 13 Indian States have legalized the government lottery.
  • The activity is illegal in 15 Indian States and 8 Union Territories.
  • Private Indian lotteries are banned, whatsoever.
  • Playing international lotteries from India is not illegal.

The Legality of Online International Lotteries

  • International lotteries are organized by foreign operators outside India, which keeps them away from the law of the land. 
  • Because these lotteries are not privately organized by any Indian resident, they can be termed legal. 
  • Anyway, the Lotteries (Regulation) Act 1998 does not specifically mention a ban on online lotteries (which is exactly why Sikkim could come up with one).

Verifying, please be patient.