Skill Lotto Solutions v. Union of India

The court held that online lotteries were a form of gambling and were not entitled to protection under Article 19(1)(g) of the Indian Constitution, which guarantees the right to carry on any lawful business or occupation.

Introduction:

The Skill Lotto Solutions v. Union of India case is a significant ruling by the Supreme Court of India regarding the constitutionality of online lotteries and the authority of the state to regulate them. The verdict, which was delivered on 5th May 2015 by a division bench, carries crucial implications for the legal treatment of online gambling in India.

Background:

The case emerged from a writ petition filed by Skill Lotto Solutions, a private company engaged in the online lottery business. The company challenged the constitutional validity of two notifications issued by the states of Kerala and West Bengal, respectively, which had banned online lotteries within their jurisdictions.

Skill Lotto Solutions argued that online lotteries differed from traditional lotteries as they were based on skill, rather than chance. The company contended that the ban on online lotteries violated its fundamental right to carry on business under Article 19(1)(g) of the Indian Constitution.

The Union of India, the respondent in the case, contended that online lotteries constituted a form of gambling that could have harmful societal effects. The respondent argued that the state had the power to regulate such activities under its police powers.

After hearing both sides, the Supreme Court held that online lotteries constituted a form of gambling and were not protected under Article 19(1)(g) of the Indian Constitution. The court further ruled that the state had the authority to regulate such activities under its police powers. As a result, the court upheld the validity of the notifications issued by Kerala and West Bengal, banning online lotteries in their respective states.

It is a significant legal precedent in India, as it establishes the state’s power to regulate online lotteries and other forms of online gambling.

Pre-Case Year:

Before the Skill Lotto Solutions v. Union of India case, various private companies were offering online lottery services, which were gaining popularity in India. However, concerns were raised about the legality and potential social impact of these activities. As a result, several states imposed bans or regulations on online lotteries, leading to a legal dispute.

Legal Question Raised:

whether online lotteries could be classified as gambling and if they were entitled to protection under the constitutional right to carry on business. Additionally, the case also addressed the issue of whether the state had the power to regulate online lotteries under its police powers, given the possible societal impact of such activities. The decision in this case would have far-reaching consequences for the legality of online lotteries and other forms of online gambling in India.

Contentions

Skill Lotto Solutions argued that online lotteries differed from traditional lotteries as they were based on skill, rather than chance, and therefore, the ban on online lotteries violated its fundamental right to carry on business under Article 19(1)(g) of the Indian Constitution.

On the other hand, the Union of India, the respondent in the case, contended that online lotteries constituted a form of gambling that could have harmful societal effects. The respondent argued that the state had the power to regulate such activities under its police powers.

Therefore, the main contention in the Skill Lotto Solutions v. Union of India case was whether online lotteries were a form of gambling, and consequently, whether the state had the power to regulate or ban them in the interest of public welfare. The case also involved the question of whether online lotteries were entitled to protection under Article 19(1)(g) of the Indian Constitution, which guarantees the right to carry on any lawful business or occupation.

Judgement

Skill Lotto Solutions v. Union of India case, the Supreme Court of India upheld the validity of the notifications issued by the states of Kerala and West Bengal that had banned online lotteries within their jurisdictions. The court held that online lotteries were a form of gambling and were not entitled to protection under Article 19(1)(g) of the Indian Constitution, which guarantees the right to carry on any lawful business or occupation.

The court noted that the right to carry on business under Article 19(1)(g) was not absolute and was subject to reasonable restrictions imposed by the state in the interest of public welfare. The court held that online lotteries were games of chance that could have harmful societal effects, and as such, the state had the power to regulate or ban them in the interest of public welfare under its police powers.

Therefore, the court upheld the validity of the notifications issued by the states of Kerala and West Bengal, which had banned online lotteries within their jurisdictions, as a valid exercise of their police powers. The judgement established the power of the state to regulate or ban online lotteries and other forms of online gambling in India in the interest of public welfare, even if they are based on skill rather than chance.

Conclusion

This case upheld the power of the state to regulate or ban online lotteries and other forms of online gambling in India in the interest of public welfare. The Supreme Court held that online lotteries were a form of gambling and were not entitled to protection under Article 19(1)(g) of the Indian Constitution. The court clarified that the right to carry on business under Article 19(1)(g) was not absolute and was subject to reasonable restrictions imposed by the state in the interest of public welfare.

The judgement in this case has set an important legal precedent for future cases involving the regulation of online gambling in India. It has clarified the scope and limits of the right to carry on business under Article 19(1)(g) of the Indian Constitution and has established the power of the state to regulate or ban online lotteries and other forms of online gambling in India in the interest of public welfare. This decision has significant implications for the online gambling industry in India and has helped to ensure that the interests of public welfare are protected.

NAME : HARSHIT YADAV, COLLEGE : Chanderprabhu jain college of higher & school of law affiliated with GGSIPU, DELHI, Course : BBA.LL.B (Hons.), SEMESTER : 6^th intern under legal vidhiya.