Kerala High Court drops the gavel on lottery reporting proposals

In a world where governments advocate for additional transparency, especially when it comes to gambling winnings, there’s an interesting story developing in the Indian state of Kerala. The Kerala High Court has sided with the people, striking down a proposal by tax agents that would have forced state lottery agents and distributors to reveal names of winners. Chalk one up for the little man.

Last Friday, Justice A. Muhammed Mustaque ruled that the government doesn’t have the authority or legal competence to authorize the rule, according to The Hindu. The justice also reversed a rule that allowed Goods and Service Tax (GST) authorities to determine whether or not a lottery abided by existing Lotteries Act rules. The decision was welcomed by a number of lottery operators and certainly is surprising in the wake of tighter regulatory controls in the country.

The decision confirms a previous petition entered by Mizoram lotteries. Last year, the Mizoram government attempted to sell lottery tickets in Kerala, but the Kerala government seized the tickets and ordered Mizoram to suspend the sales efforts in the region. Mizoram relented, but the Kerala government accused Mizoram of violating the Lotteries (Regulation) Act. Kerala accused Mizoram of facilitating tax evasion activities worth hundreds of thousands of dollars.

This wasn’t the first time that the two regions have squared off. In 2010, Mizoram stopped selling lottery tickets in Kerala after it began a serious clampdown on the activity. A number of legal complications arose, and Mizoram decided it was better to pull back instead of engaging in a legal war.