The Massachusetts Supreme Judicial Court ruled on May 13, 2026, that MD Zafar's license to sell lottery tickets could be denied based on moral character, even if he was acquitted of a crime. This decision affects Zafar and others applying for lottery licenses who have faced serious criminal allegations.

The case, Zafar v. State Lottery Commission (SJC 13864), centers on the State Lottery Commission's authority to deny licenses based on moral character. The court's ruling clarifies the commission's discretion in evaluating applicants, which could set a precedent for future cases involving similar circumstances.

Background

MD Zafar, a convenience store owner, sought to renew his lottery sales agent license. However, during the renewal process, the State Lottery Commission discovered that Zafar had been charged with raping his wife, Esha. Although he was acquitted of the charges in 2017, the commission relied on trial transcripts to conclude that Zafar lacked good moral character.

The commission's hearing officer found by a preponderance of the evidence that Zafar had indeed raped Esha, leading to the denial of his license renewal. Zafar challenged this decision in the Superior Court, arguing that the commission exceeded its authority by denying his application based solely on moral character without a felony conviction.

The Superior Court initially sided with Zafar, stating that the commission's regulations required both a felony conviction and a moral character determination to deny a license. This ruling prompted an appeal from the State Lottery Commission, which sought to reinstate the denial of Zafar's license.

The Ruling

The Massachusetts Supreme Judicial Court reversed the Superior Court's decision, affirming the commission's authority to deny a license based on moral character alone. The court stated, "The statute provides the commission significant discretionary authority to issue licenses that, in the director's opinion, best serve the public convenience." This means that an applicant's moral character can be evaluated independently of any felony conviction.

The court also noted that the commission's findings were supported by substantial evidence, specifically the transcripts from Zafar's criminal trial. The court emphasized that the burden of proof in licensing proceedings is lower than in criminal trials, allowing the commission to rely on trial transcripts to support its decision.

Impact

This ruling has significant implications for individuals applying for lottery licenses in Massachusetts. It establishes that the State Lottery Commission can deny licenses based on moral character, even if an applicant has been acquitted of criminal charges. This decision reinforces the commission's authority to evaluate the character of applicants and may lead to stricter scrutiny of future license applications.

Moreover, the ruling could influence other state agencies that have similar licensing authority, as it sets a precedent for how moral character is assessed in the context of administrative law. Applicants with serious allegations in their backgrounds may face increased challenges in obtaining licenses in various sectors.

What's Next

Details were not available in the court filing regarding whether Zafar plans to appeal this decision further. However, the ruling effectively upholds the commission's authority, and there are no related cases pending that directly address this issue.