[mc32]

So maybe a hybrid approach would be to keep them legal and monopolized by the state but simultaneously run PSA and adverts as well as emblazon labels on the tickets about the ills they visit upon the buyers.

And so a successful lottery organization would be one which eventually drove itself out of business.

[lxmorj]

Or just take a smaller cut and spread the winnings thinner so that the expected value is closer to the actual spending. Change it so that they have to be scratched to win (instead of buying and scanning), or institute other limiting factors.