You write as if you'd consider that a bug, but it's a feature: those lotteries exist to give citizens an outlet for their gambling desires that openly admits that participating is a bad idea. Gambling is a problem not because of the (usually tiny) cut of the house, it's a problem because it distracts addicts from seeking more productive solutions and because of the diminishing returns of money in terms of happiness. State run (or endorsed) lotteries are a damage mitigation strategy that has bad odds by design and they used to serve us pretty well, before sports betting somehow snuck in and took over (same thing happened in multiple European countries)