The lottery was based on a database that somehow took the information from the playing servers, and used that for a comparision/match with the lottery conditions (so that the rewards will be appropriate to the respective level). One day there was a big outage, and the lottery system was damaged, with no backup available. Sapience restarted it several times, trying to make it work again, but couldn't really get it running. In the end, the lottery was ditched.
This is what I know about the story (and witnessed while the whole thing was going on).
Greetings, Polymachos
Räuberhöhle auf Belegaer, Breelandsiedlung, Ochsbott, Lange Straße 5. Vorsicht, Fallen!
Awkward Anomalities Arena in Breeland Homesteads, 6 Long Street, Ersward (Landroval) - Elderslade under attack!
Scared people tend to follow the flock, no matter which shepherd it has