A theocracy is possible. And it would be the worst tyranny possible. Everyone would be slaves, and the few at the top (those that joke-hova chose) would own everyone and everything. They would answer only to joke-hova. They would have no accounting with the people under them, whom they could and would abuse in every way possible.
For starters, communism is the secular version of Christi-SCAM-ity. (And Islam, for good measure.) You would be living in communal farms, where you would do the work and those at the top (all "God's chosen") would reap all the benefits. This happened in the Soviet Union under Stalin. Anyone that complained would be slaughtered.
Another way, more up to date, would be for all of us to get RFID chips implanted in our left hand. Those without this chip would be forcibly chipped or be unable to survive, marked for slaughter. You would live in apartments stacked on top of each other, 14 high and measuring under 25 square meters. Those would cost so much that you would have no discretionary income, despite working 16 hours a day 7 days a week. Everything you do is strictly monitored, right down to the last drop of water used or if you are using the "wrong" type of light bulb (anything other than a squiggly thing is the "wrong" type). All activities and thoughts are monitored, and result in censure at one point or another. Your movements are restricted.
Remember, every time a theocraptic government is enacted, tyranny is the result and everyone is enslaved to the few that joke-hova chooses.