On the border of Ohio and West Virginia, there was a muffler shop that was the top-selling location for Ohio lottery tickets for years. Location is a big determining factor.
The decision to go from an individual state lotto game to a multistate game is a natural evolution. The way a lottery increases profits is to design games that appeal to the masses, to broaden the player base.
No matter how successful a lottery is, it's going to be difficult for a lottery to fund (all) education because it costs so much.