The error can't be seen unless we add the missing false premise.
(1) Everyone wins the jackpot.
(2) Person who win the jackpot in lottery will not go to work.
(3) If everybody wins the jackpot, nobody will go to work.
(4) If nobody goes to work, the society cannot function.
(5) Therefore, the government should not allow any lottery game.
Validity and Soundness
A deductive argument is said to be valid if and only if it takes a form that makes it impossible for the premises to be true and the conclusion nevertheless to be false. Otherwise, a deductive argument is said to be invalid.
A deductive argument is sound if and only if it is both valid, and all of its premises are actually true. Otherwise, a deductive argument is unsound.
When we add the missing premise we can see that the argument is unsound.
The second premise is not needed.