2

In The Sting Lonnegan had a professional hit-woman, Loretta, work at the diner that Hooker frequently visited so that she could kill him. I'm guessing that with the bet ready to go the next day, Lonnegan doesn't need Hooker anymore and can have him killed off, saving himself some money.

But Loretta ends up getting killed first by a protector setup by Gondorff.

Shouldn't Lonnegan have been surprised when he arrived at the gaming room and sees Hooker was still alive?

5

Lonnegan doesn't actually know it's Hooker, or rather "Kelly", he wants killed. For all he knows Robert Redford is just "Kelly", partner of "Shaw", who he is about to do some serious business with. He doesn't know it's the same guy who pulled a coup on him earlier and who he is looking for.

Lonnegan sent the killer to track down and kill Luther's partner, but I doubt he knows who that actually is or how he looks. Loretta is pretty much working alone and apparently didn't give a description of Hooker to Lonnegan.

Otherwise, if he actually knew one of the people he is going to do business with is the guy who just pulled a coup on him and who he's going to kill, he'd be a lot more suspicious of the whole thing and not fall for it at all.

Though, I agree that Lonnegan's obliviousness in this regard might indeed be a point of confusion, as also adressed in this related question.

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