Per the Kansas Supreme Court’s press release of June 27, 2008:

RE: Case No. 99,957: State ex rel. Stephen Six v. Kansas Lottery and Ed Van Petten

The state Supreme Court today upheld the constitutionality of the 2007 Kansas Expanded Lottery Act (KELA).

The Court, in a 22-page unanimous opinion authored by Justice Eric S. Rosen, said that “while the state is not the exclusive owner and operator of all aspects of the lottery enterprise under KELA, the state owns and operates the enterprise itself and owns and operates key elements of the lottery,” thus complying with 1986 constitutional amendments.

A summary of the opinion is here, or read the full text.