All states should have a lottery as people have every right to play games and possibly win. It is called freedom!
Odd definition of freedom—one in which government claims a monopoly on a particular dubiously-ethical form of commerce, which it operates in a less honest and less ethical manner than similar commerce is operated by private enterprise in those states where doing so is legal.
I'm on the fence about gambling as a whole, whether it should be legal or not. I tend to lean toward not.
But if it is to be legal, then it ought to be at least equally legal for anyone who is willing to put up the capital, take the risks, and abide by some reasonable regulations, to operate a gambling business, such as a casino or a privately-run lottery. If it is not to be legal for private enterprise, then it ought not be legal for government either.
I can find no rational cause why government should be allowed to engage in it, while prohibiting private enterprise from doing so as well. In fact,given how far-removed gambling is from any legitimate government function, it makes more sense to prohibit government from engaging it it, while allowing the private sector to do so, than to allow government to do so while prohibiting the private sector.
Freedom is not about what powers government reserves to itself; but about what rights and liberties government refrains from denying the people.