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A group represented by the North Carolina Institute for Constitutional Law filed suit against the state in December 2005, asking a judge to block the lottery's start and arguing that a lottery is in part a tax and the legislature breached the state's constitutional requirement that tax legislation be passed in both the House and Senate on three separate days. In March 2006 a judge ruled that the lottery is not a tax and therefore the bill was passed constitutionally, and the lottery could proceed with ticket sales.
The case was appealed and arguments before the court of appeals started on May 21.
