Congress passed the Federal
Lottery Act of 1895, which prohibited
the interstate transportation of foreign lottery tickets.
Congress felt that the Interstate
Commerce Clause gave them the
authority to regulate this activity.
Champion imported a box of
Paraguayan lottery tickets from Texas to California. He was convicted of
violating the Federal Lottery Act.
Champion argued that the Federal
Lottery Act was unconstitutional
because Congress did not have the power to regulate his activity.
The US Supreme Court found the
Act to be Constitutional.
The US Supreme Court found
that the Interstate Commerce Clause
gave Congress the authority to regulate chattel, or anything being moved interstate.
In a dissent it was argued
that this would amount to giving Congress general police power, since it
amounted to saying that "everything is an article of commerce the
moment it is taken to be transported from place to place, and of
interstate commerce if from State to State."