from my understanding, if it's fixed for entertainment purposes, it's legal. it it's fixed for gambling purposes, it's illegal. being that there's a show based around the outcome, it serves as entertainment. i've never seen a vegas line on the lottery.
from reading about the process, they use a lottery ball machine, so i really don't know what moremilk is talking about. maybe he can provide a link.
i get that the lottery is observed by the audit firm and the team representatives, but how do they not know the outcome of the lottery when they're sitting there observing? are they pretending that they don't know when they're sitting there sweating? or do they not understand the process of how the winner is determined.
although it would possibly kill the anticipation, they could easily squash all rumours of the lottery being rigged if they even showed it once, or even after the fact. the nba hasn't gone out of the way to really kill the rumours that have been around since the very first draft lottery. these coincidental wins only add fuel to the fire.