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A company hired to manage the Illinois Lottery cheated players and lottery vendors by misrepresenting the odds of winning scratch-off games, a class-action lawsuit in federal court alleges. http://www.stltoday.com/news/local/crime-and-courts/lawsuit-alleges-illinois-lottery-contractor-cheated-players-vendors/article_1c12ba2a-938c-545d-9d87-25a1c203c48a.html
NJ state government has spent $8.6 million of taxpayer dollars to pay the legal fees of its push for sports betting to benefit the state's gambling interests: https://www.playnj.com/news/nj-sports-betting-legal-bills/18639/
Not only is the practice legal, but it is happening with much greater frequency since Indiana hired a private operator — IGT Indiana (formerly GTECH) — to run nearly all of the operations of the Hoosier Lottery. https://www.indystar.com/story/news/politics/2018/04/05/hoosier-lottery-often-pulls-plug-high-dollar-scratch-off-games-before-all-prizes-can-won/417720002/