Whats mind boggling about it? I'm pretty sure that lotteries of this sort are kind of common with the government. I know of school having lotteries in which they admit so many people, then for the last bunch of spots they have a lottery for people who meet some requirements but were not selected initially. I'm pretty sure that the draft in the seventies was lottery based.
edit: With the list of ineligible countries included it seems rather silly.
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