The Franklin County Court of Appeals heard arguments yesterday in a lawsuit aimed at halting the state's Mega Millions Lottery.

The Ohio Roundtable, Methodist churches and problem gamblers argue that Lottery officials violated the Ohio Constitution when they joined a multistate game.

Columbus lawyer Donald J. McTigue argued that a 1987 constitutional amendment passed by Ohio voters requires the "entire net proceeds'' of Ohio lotteries to be used for education.

"That's not happening,'' he said. "The money is being shared with other states. We should not be involved in this lottery unless the entire proceeds come to us.''

Ohio Lottery Commission spokeswoman Mardele L. Cohen declined to comment on the lawsuit. Kim Norris, a spokeswoman for Attorney General Jim Petro, said, "The (lottery) agency is conducting the Lottery as is required by the Ohio Constitution.''

David P. Zanotti, president of the Ohio Roundtable, a conservative research group, claimed the multistate game has opened the door to other forms of gambling.

"All of this links together,'' he said. "Ohio is a big target for the gambling industry.''

Some state legislators have proposed legalizing electronic slot machines at seven horse racetracks and allowing Internet keno games.

And Zanotti fears there is a movement afoot to build casinos on American Indian-owned land in the Shelby County town of Botkins as well as near Youngstown and Sandusky.

"If tribal casinos open in Ohio, they will bankrupt the Ohio Lottery and Ohio racetracks,'' he said.

In July, Judge Daniel T. Hogan of Franklin County Common Pleas Court ruled that joining a multistate lottery was not unconstitutional, but diverting the game's proceeds from education to balance the state budget was.

Hogan said the state cannot use proceeds from Mega Millions to fund programs unrelated to public education.

Lottery profits make up 9 percent of Ohio's share of money for education.

Cohen said transfers to education are running $21 million behind projections for this fiscal year.

"We're still confident we'll make that up,'' she said.

While Mega Millions profits are running slightly ahead of projections, Super Lotto proceeds are down, she said.

The state budget estimated Mega Millions would raise $41 million this fiscal year. It is projected to net $45.4 million, Cohen said.

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