The last one. The lottery is not a civic activity. Civic activities build communities as a whole, but lotteries involove one person using luck to build himself up rather than engaging in character-improving civic activities like square dance.
The right answer is "that the lottery is thought of as a civic activity".
The lottery is a game in which people bet on numbers in order to win the established value for the lottery. That is, it is a method of distributing prizes and not a civic activity.
