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Appeals court reviews Lottery Commission's revocation standards in Rai brothers case
Summary
The Rai brothers appealed permanent revocations of their lottery licenses tied to an alleged resale scheme; appellants called the agency’s 300-ticket threshold arbitrary and questioned reliability of cooperating witnesses (the Jafars), while the Commission defended its sanction, pointing to corroborating sales data and inconsistent accounts by the brothers.
The panel considered a challenge to the Massachusetts State Lottery Commission's imposition of permanent revocation against the Rai brothers, who were found by the Commission to have sold large numbers of tickets linked to a multi-year secondary-market scheme. Appellants argued the Commission's use of a 100/200/300+ 'tranche' system—where 300 or more…
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