Legal Challenge Could Derail Lottery

A legal challenge to the state lottery that centers on whether a portion of each ticket is a tax or a profit could derail the games. That's the hope of plaintiffs whose case heads to the state court of appeals next month.

The plaintiffs include the Wake County Taxpayers Association and
the N-C Family Policy Council. They say the lottery that was launched in March 2006 is a tax, and should have gone through the required legislative process for new taxes.

Both sides in the case agree that the General Assembly's vote to
approve a lottery did not adhere to that process, including taking
votes over three separate days.

But, say attorneys for the state, that's because the lottery is not a tax and didn't need to follow those rules.

A Wake County judge has already rejected the plaintiff's arguments.