LDS definition [per LDS.org]: The Church of Jesus Christ of Latter-day Saints is opposed to gambling, including lotteries sponsored by governments. Church leaders have encouraged Church members to join with others in opposing the legalization and government sponsorship of any form of gambling.
Gambling is motivated by a desire to get something for nothing. This desire is spiritually destructive. It leads participants away from the Savior's teachings of love and service and toward the selfishness of the adversary. It undermines the virtues of work and thrift and the desire to give honest effort in all we do.
Those who participate in gambling soon discover the deception in the idea that they can give little or nothing and receive something of value in return. They find that they give up large amounts of money, their own honor, and the respect of family members and friends. Deceived and addicted, they often gamble with funds they should use for other purposes, such as meeting the basic needs of their families. Gamblers sometimes become so enslaved and so desperate to pay gambling debts that they turn to stealing, giving up their own good name.
Ensign Article: The Evils of Gambling
Although the LDS Church condemns any form of gambling, even the lottery as stated above, it doesn't stop the Latter-day Saints from enjoying the benefits of the gambling industry and the lotteries.
Many LDS live and work in Nevada where gambling is legal. Many LDS also work in casinos and receive their income and pay their tithing off the fruits of gambling. No one seems to mind.
Also, most U.S. state lotteries fund education scholarships. Few people see a problem with that and hundreds of thousands of students are able to get an education that they wouldn't have had the opportunity otherwise if it weren't for the state lotteries. If everyone was LDS there would be no state lotteries and no state-funded scholarships programs, therefore leading to less people obtaining a college education. Of course, Latter-day Saints don't hesitate to accept the state lotteries' money for their children's education even when the church condemns the lotteries that fund them.