Lotto has removed its Six60 $3 scratchie from sale after facing backlash.
It comes after claims the popular New Zealand band's involvement could worsen the country's gambling problem.
Lotto said in a statement on Wednesday they have taken into consideration feedback from the band's fans and the wider community.
"Following feedback from Six60 fans and the wider community, Lotto NZ and Six60 have mutually agreed to remove the Six60 scratchie from sale," the statement read.
"We apologise for any concern caused by this ticket."
Comedian Guy Williams raised the issue in a tweet on Monday.
"A Six60 scratchie is not right, eh," he said.
Lotto and Instant Kiwi have collaborated with popular New Zealand brands over the years, and claim that 100 percent of their profits all go back to the community.
But Williams said it's just a PR spin.
"Any claims the money goes to charity is just PR spin - they're legally obliged to donate some profits to charity.
"This is a targeted gambling campaign aimed at young people."