Would Apple allow an app where you can purchase a lottery ticket through PayPal and go into the chance to win, with the winners money going to a PayPal account?
What are the legal considerations when it comes to lottery apps in Australia?
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In NSW and all other Australian jurisdictions lotteries and other games of chance are regulated. See https://www.liquorandgaming.justice.nsw.gov.au/Pages/gaming/competitions/games-of-chance.aspx
In general, lottery type games can only be run for the benefit of charities or by registered clubs. Free entry games can be run as trade promotions.
Straight lotteries are restricted to the State or specific enterprises licenced by the State.
The legal considerations of what you are proposing is that you will be fined or sent to gaol.