Lottery grave old man set up (7)
I believe the answer is:
tombola
'lottery' is the definition.
(tombola is a kind of lottery)
'grave old man set up' is the wordplay.
'grave' becomes 'tomb' ('tomb' can be a synonym of 'grave').
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'man' becomes 'al' (**).
'set up' is a reversal indicator.
'al' back-to-front is 'la'.
'tomb'+'o'+'la'='TOMBOLA'
(Other definitions for tombola that I've seen before include "Tickets are drawn from a revolving drum in this raffle" , "Type of lottery" , "Game often found at fetes" , "Ticket-drawing game" , "fund-raising event" .)