Nature of the Case
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Facts
In 1867, the legislature of D granted a charter to a lottery company for twenty-five years in consideration of a stipulated sum in cash, an annual payment of a further sum, and a percentage of receipts from the sale of tickets. A provision of the Constitution adopted in 1868 declares that 'the legislature shall never authorize any lottery, nor shall the sale of lottery tickets be allowed, nor shall any lottery heretofore authorized be permitted to be drawn, or tickets therein to be sold.' P claimed that the charter bound the State irrevocably by contract to permit a lottery. P claimed that its right to conduct the lottery was protected by the Contracts Clause of the Federal Constitution. The State Supreme Court ruled for D. The Supreme Court granted certiorari.
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