The N.C. Court of Appeals on Tuesday upheld a lower court's dismissal of a suit that challenged the way North Carolina's lottery was established.

The lawsuit, filed in 2005, contended that the lottery is a tax and didn't go through the procedural requirements in the legislature for new taxes.

The state disagreed, arguing that it makes a profit on the sale of lottery game tickets.

Plaintiffs included state Rep. Paul Stam, an Apex Republican; the N.C. Family Policy Council and the Wake County Taxpayers Association.

In his opinion for the three-judge panel, Judge James Wynn Jr. said the Lottery Act was not a bill "enacted to raise money on the credit of the State." Wynn also wrote that the lottery was not created to to pay any debt.

Judge Ann Marie Calabria disagreed, saying the state is essentially indebted to prize winners.

The opinion defines a revenue bill as any legislation that raises money on the credit of the state and pledges the faith of the state for the payment of a debt.

Calabria's dissent leaves the window open for a review by the N.C. Supreme Court.

Jack Holtzman, an attorney for the plaintiffs, said an appeal is under consideration.

"The decision misinterprets the appellate case law," Holtzman said.

Fishing for young voters

Sen. Barack Obama has begun a voter registration drive for North Carolinians.

In a page on his Web site, the Democratic presidential contender has links for download ing voter registration forms and for volunteering to staff phone banks, to canvass or to send e-mail messages to friends.

According to an e-mail message to supporters from the campaign, the drive is aimed at younger voters.

"Statistics show that if we can get young people to vote Democratic now, they are far more likely to vote regularly -- and vote for Democrats -- throughout their lives," it says.

Clinton, Obama for dinner?

The Jefferson-Jackson Dinner could be a big hit this year.

The N.C. Democratic Party's annual fundraiser in Raleigh usually features a national political figure to draw party activists from across the state.

Last year, it was Rahm Emanuel.

This year?

Let's put it this way: The dinner will be held at the Raleigh Sheraton on April 26. The state primary will be May 6. Both Obama and Sen. Hillary Rodham Clinton say they will be campaigning heavily here.

And in other states, Jefferson-Jackson dinners have been huge magnets for the Democratic presidential candidates who wish to court primary voters.

Party spokeswoman Kerra Bolton confirmed that both campaigns have been invited.

Senate action pleases Dole

U.S. Sen. Elizabeth Dole was pleased last week with the Senate's approval of an amendment she offered to provide more money to help local law enforcement agencies "apprehend, identify and remove criminal illegal aliens."

Dole is referring to the so-called 287(g) program. Under the program, Immigration and Customs Enforcement works with local law enforcement to combat illegal immigration.

A handful of North Carolina counties, including Mecklenburg and Alamance, have such agreements with ICE.

The amendment would provide an additional $75 million for the program.

"To address the problems presented by individuals who are not only here illegally but who have self-identified themselves because of criminal behavior -- we must provide the funding for ICE to make the necessary resources available to our local law enforcement officers who are on the front lines," Dole said.

Pro-choice group for Hagan

EMILY's List has endorsed state Sen. Kay Hagan of Greensboro in the Democratic U.S. Senate primary.

"Kay Hagan personifies the strength, experience and tenacity needed to change Washington and to bring North Carolina's priorities back from those of President Bush," Ellen Malcolm, president of the group, said in a statement.

Hagan faces Chapel Hill investment banker Jim Neal and three lesser-known candidates in the Democratic primary.

The political action committee works to elect pro-choice Democratic women through a network of local advocates.