Any other college summer teams do this nonsense?

It wouldn't be my favorite approach to fund-raising either; but, I'd suggest that you pause for a moment and consider a couple of questions:

(1) Is it possible for you to view it more as a fund-raising mechanism and less as a form of gambling? You didn't say how much of a "contribution" each ticket required; but, could you, some of your friends, and a few family members see a ticket as evidence of having contributed to the team's financial health? In effect, forget that it carries a potential benefit with it. Heck, throw it away if it makes you feel better...and let the team keep your winnings if the odds come out in your favor. You made a contribution if you purchased it.

(2) How much are you being asked to dole out for your son's opportunity to play this summer? In our case, it was limited to the NCAA-required housing allowance of $50 a week that went to our son's house parents. As a result, when I attended one of his games, I didn't mind the fact that a hat was passed for contributions in lieu of admission or that they held a mid-game, "50/50" raffle. Either activity helped make it possible for our son to have the playing experience of his life.

A lot depends on the eyes that it is being seen thru--- I see it as a simple fund raiser

In the FCSL, each team must raise $40,000 per team to cover costs of uniforms,equiptment, balls, bats,field rentals, coaches, interns, umpires , etc.

There is no admission to games but the hat is passed and raffles are held.

Sponsors are sought.

Another alternative would be to have the players be responsible for the entire cost.