I'm glad you point this out. So far no one has noted that lottery is a service the government provides as an alternative to gambling privately in dangerous, much more exploitive conditions.
Interestingly, the job of advertising state lotteries should walk a fine line between drawing would-be private gamblers to safer state circumstances and inducing people who wouldn't normally gamble to take it up. And it sounds like some of those ads have stepped over the line.
So the most salient part of this article deals with advertising lotteries.
The part about turning the lottery over to private businesses I don't find compelling. After all, the role of private business is to make profit and often does so by gravitating laws in their favor. I don't think businesses would compete to see who can make the most benevolent advertising.