The Kansas Supreme Court heard arguments Wednesday regarding the gambling appeal between the attorney general and the Kansas Lottery.

Legally, casinos must be owned and operated by the state, including the Kansas Lottery, due to a law passed last year.

The Kansas Supreme Court is deciding what exactly that phrase ‘state-owned and operated’ means.

A Shawnee County District Court judge ruled in February that the state’s expanded gambling law is constitutional.

The attorney general appealed the decision and claims the lottery doesn't have ownership, that something must be acquired and there must be a risk of loss to own something, and the state doesn't have that.

The lottery disagrees.

Both sides feel they did what they had to do today and now it’s in the courts hands.

“All of the issues were flushed out before the court and I thought some really intelligent questions were asked and things went well,” said Ed Van Petten, Executive Director of the Kansas Lottery. “I think the district court’s decision will be upheld based on the facts as I’ve seen them.”

“The court was well prepared, asked a lot of pointed questions about how the lottery was set to operate and I’m confident that they will give it due deliberation and let us know what they think,” said Deputy District Attorney Mike Leitch.

There are four casinos at stake with this decision.

If the constitutionality is upheld, Kansas would be the first state in the nation to allow state-owned and operated casinos.

The court didn't give any indication as to when a ruling may be handed down.

It should be sometime this summer.

Meanwhile, the lottery says it is going forward with the contract negotiations of the casinos so it can stay on schedule.