No to both.
Is the solution to the puzzle an explanation of the reason why these people were drawing lots to see who committed suicide?
Yes, it is what was outlawed.
(if people give up, just let me know and we’ll wrap it up)
Does the law outlaw the reason itself?
Was a specific physical activity outlawed?
Was a specific idea or concept outlawed?
KK
Was it anything to do with going over a waterfall? Perhaps in a barrel?
Nope.
The dire consequences that the losers would face if they didn’t kill themselves: Would those consequences come from…
…other participants in the lottery?
…other individual members of society?
…society as a whole?
…impersonal forces?
Would these people have faced the same dire consequences if they had chosen not to participate in the lottery in the first place?
Would these people have faced other (presumably lesser) consequences if they had chosen not to participate at all?
Did the winners of the lottery face any of these consequences, in whole or in part, after they won?
I am not entirely sure what the consequences were if the loser did not kill themself. It’s unclear. I think there had to have been consequences, but I have no real examples that explain what happened in this kind of situation.
You have said that deaths occurred by various methods including guns, poison, falliing and drowning.
Did each victim choose his own method of death?
Was the method selected randomly?
KK
Examples of impersonal forces causing dire consequences: A cancer tumor consuming someone from the inside, a meteor falling on a collision course with a person, probably even a wild tiger consuming someone from the outside.
No, none of that would happen.
I’ll post the answer tonight if no one objects.
It’s definitely moving from intriguing to frustrating. As this happens, the reveal goes from “awesome!” to “huh? oh” rapidly.
Feel free to guess more or ask. I like this one a lot and am happy to keep going. Last guesses?
Does the answer have anything to do with romantic relationships?
Does the answer have anything to do with family relationships?
Does the answer have anything to do with education?
Does the answer have anything to do with people finding or keeping a job?
Not bad. I think you should keep going. 
Is duelling involved?
When the lots were drawn, was the result strictly that a particular individual needed to commit suicide (as opposed to the result being something else that might lead to a suicide)?
Does the answer have anything to do with manners or social customs (who should remove their hat when, shaking hands, who should be invited somewhere, etc.)?
YES
I think you guys can just summarize it now and it is solved.
So, two gentlemen had a disagreement and both felt it could only be answered by a duel. Instead of fighting with swords or pistols they would draw lots. And they agreed the loser must kill himself.
Is that it?