The best thing to do would be to learn how the lottery business works. Im not saying that he should change his morals but practiaclly speaking, he needs money. He should also study why there is no lottery on their place yet and verify it. To go with the offer would be the best option but if he has something in mind like other business where he doesnt have to “sacrifice” morals. He can consider it too.
I don't think he even needs to learn that; there is no experience needed for him here. What's needed is for him to lease out that space to them. At the end of the day, he gets paid; he's in need of money, and he can't hold up a business of his choice at that location due to the high rate of competition. Now an opportunity has presented itself. What's there for him to accept? That's what he should do without thinking about the outcome or his morals.
What's most important is that the business is legal, and there is no time when the government is going to come after him for renting out space for illegal businesses. This does not even require more thinking; the more time he spends thinking about his morals, the more time the agent has to search for space elsewhere where he is a businessman, and the more time wasted, the more money that could have been made also wasted.