At issue in the case is how the General Assembly passed the law and whether it was constitutional.
North Carolina law requires votes on separate days for laws that lead to higher taxes or borrow against the state's credit.
Attorneys for the state have argued that the lottery law does neither and that both chambers' votes were legal. (In April 2005, the House approved the lottery bill by a vote of 61-59. In August of the same year, the Senate needed a tie-breaking vote from Lt. Gov. Beverly Perdue for the measure to pass 25-24.)
The bigger question, however, for appeals court judges Tuesday was what happens if the lottery, which recently reached the $1 billion sales mark, is ruled unconstitutional -- specifically, what would happen to all the money already rewarded.
Attorneys for the plaintiff, however, said they were only seeking to change the future of the lottery law and wasn't interested in lottery winnings since the lottery launched in March 2006.