My best understanding is there are two separate draws for picks #1 and #2.
In your scenario:
- Once #12 (Ottawa) wins the lottery draw for the first pick the #1 team (Anaheim) has won 1st overall. Ottawa can move up at most 10 draft positions, but are not guaranteed the second pick.
- If Arizona or any other team lower than #12 wins the lottery draw for the second pick then Ottawa drops to the third pick.
The only way Ottawa can hold onto that second pick in your scenario is if a team seeded lower than Ottawa (#13-#16) wins the lottery for the second pick.
Apologies for jumping into this particular convo a few days late, but most of this is incorrect -- The second part of the bolded above is incorrect and is the root cause of the mistaken conclusion(s).
From Tankathon:
"The 1st overall pick is awarded by a drawing of ping pong balls. A team can only jump ten spots, so only the top 11 teams are eligible for the 1st pick. If a team in the 12-16 range wins the first drawing, the first pick will be awarded to the worst team. The 12-16 seed team that won the first drawing is also locked into their new position.
A second drawing is held to determine the other lottery winner. Like the first drawing, the second winner can only jump ten spots, but this time it is using the re-seeded order following the first drawing. This second drawing will not affect the team(s) with locked-in positions from the first drawing. If a ten spot jump is to a pick that is already locked-in, this team will receive the next available pick."
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So what does this mean.
1. If Ottawa wins the first lottery drawing they move up ten spots and are guaranteed the second pick
2. If a team below Ottawa (that is not Buffalo) wins the first lottery drawing, then that team jumps 10 spots and all the teams are re-seeded so Ottawa drops to 13 rather than 12. In this case, if Ottawa wins the second drawing then they jump 10 spots, so they'd pick #3 (0.1% chance)
3. If Buffalo wins the first lottery then Buffalo jumps 10 spots and picks #3. Then the teams are re-seeded so Ottawa falls a spot to 13. In this very weird situation, if Ottawa wins the 2nd drawing they'd ordinarily jump 10 spots to #3, but Buffalo would already be locked into spot 3 so OTT would slide one spot to #4 (0.1% chance)
And also, if any team with a more favorable draft position than Ottawa wins the first drawing, then after the re-seeding OTT would still be at 12, so if they win the second drawing they'd jump 10 spots to pick 2nd overall. That's why Tankathon has OTT at 5.1% to pick second, unless something weird happens (points 2 or 3 above) that 5.1 represents the combined chance for OTT to win either of the two drawings.
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TLDR, let's just hope Ottawa doesn't win the lottery. Overwhelmingly likely that if they do win a drawing (either the first or second drawing), they'll be picking #2 this draft