Gangtok, Aug. 22: The Sikkim government has decided to appeal to the Supreme Court against the high court’s order to close down Playwin, the country’s first online lottery.

In its June ruling, the high court asked the directorate of lotteries, under the state finance department, to cancel the marketing agency of Tashi Delek Gaming Solutions, a subsidiary of Playwin Infravest, belonging to the Mumbai-based Essel group. The court directed the state government to terminate Playwin’s agency within three months and call fresh tenders to appoint a new marketing agency.

Playwin has a month left before winding up its operations all over the country.

The ruling came in response to two separate writ petitions. While one of them was filed by the Mumbai-based Modi Entertainment Networks Private Limited, the other by two residents of Sikkim, J.K. Bhandari and Rajendra Upreti.

Official sources said the standing counsel of the state government would soon file the appeal with the apex court. “Senior government counsel are now examining papers. We will challenge the merit of the high court’s verdict.”

Sources said the court had “not considered” the facts presented by the government in connection with the case.

Sources said the state government would incur huge loss if the contract got cancelled halfway through.

Under the seven-year contract with Playwin, launched with fanfare in March 2002, the Sikkim government was to get a revenue of at least Rs 780 crore.

Chief minister Pawan Chamling has repeatedly said the money generated would be spent on education, health and poverty alleviation programmes.

The high court, in its ruling, said it found out after hearing all sides involved in the case that the government had not followed the rules while inviting the tender.

The court told the government to float fresh tender following “rules, norms and procedures.” It said the bidding companies should be given “sufficient time to purchase tender forms.”

It suggested that the successful bidder of the “properly held” tenders be made the marketing agent this time. It asked the Pawan Chamling government to publish the tender notice in at least two major national dailies.

Advocate General S. P. Wangdi said the revenue earned from the online lottery was reflected in the annual budget of the state government passed by the Sikkim Assembly. He said Sikkim, the first state to start online lottery, was promised 20 per cent of the gross sales, the highest revenue received by a state from online lotteries.

The results of the draw are declared online through Zee Television’s network. The draws for the Sikkim Super Lotto and the Thunderball are held on Thursday and Tuesday nights. Legal experts said Playwin had little option but to close down after September though the legal battle will continue in the Supreme Court.