I agree that it shouldn't be socially acceptable, and any population that sees an ad like that should be very willing to never buy from that company again.
Yet with lottery, I wonder how many people would condemn the ad but be unable to stop. Not even the type of person we think of as addicted, but just your "regular" person who when leaving the grocery store starts to think well what if this time I would have won.
Then the action they took wasn't a big enough deal. Eventually people will stop when the lotto goes too far.
As well, lotto companies should be well regulated, and I think that F2P games should fall under similar regulation. However, those regulations should be explicitly things like requiring multiple confirmations, informing users about the harms of gambling addictions, how to avoid them, and so on. Not regulations on how much people can play, or if gambling is legal in X situation.