I find myself lost when it comes to spending LTBcoins. Yes there is an exchange and auctions etc. But still, I miss things. IMO it would be nice to have some chance games hosted here or by third parties to spend your LTBc on. If people don't think the coins are worth much, they will more likely gamble it away.
Disadvantages of hosting are obvious variance, investing in a crypto casino is a rollercoasterride. Look at prcdice, even with millions of bets the profit goes from -100 to +200 bitcoin in days!
So it is best to start with risk free hosting, like a lottary. The host is risk free because a profit margin is already build in. That may fix the first problem, but a worse problem is:
The barrier for people to spend their coins. To spend your coins, you first have to spend some btc dust yourself, this is not very attractive. You cannot do many microtransactions on blockchain since that is just to costfull. You need to do it offblockchain, or with big amounts.
But it is IMO definitely worth trying, host a lottery, you can buy one ticket with 1k for example. And the prize is 95% of the total input.