Anything that has to do with the government, I totally don't like getting involved in it, especially when it comes to gambling. Like, who will you report their scam activity to, and who will come fight and defend you if you are right? When they are also the same people carrying out the activity.
If not for extortion, why on earth will the government have a lottery, or do they want to convince their citizens that they are using that means to give back to the community? Which will be one of the biggest lies they will ever say to them in order to draw them to the casino?