In a general sense, I think it's unreasonable to try to say co-workers can't give lottery tickets / unopened alcohol to each other. However, I think a dirty santa swap is a different story:
1) The gifts aren't intended for any specific person, and as has been noted, some people do have moral issues about these sorts of things.
2) In a dirty santa swap, there's a good chance that you may get stuck with something you don't want. It's entirely possible for a participant to end up winning alcohol/lottery tickets they don't want, through no fault of their own.
3) People have many different reasons for not wanting specific gifts - religious, cultural, addictions, etc. These reasons ought to be private and gift swap participants shouldn't have to announce their reasons to their co-workers.
4) We know there was at least one participant who had ethical problems with alcohol and lottery tickets (the director), and she was in a unique position to know if other people were in the same boat. It's logical to assume that someone else who opposed alcohol would come to her privately rather than to everyone else in the workplace.
5) There are a million possible presents to give at this sort of exchange - removing alcohol and lottery tickets doesn't really reduce the number of potential gifts by any appreciable amount.
6) Someone who has moral issues with things like alcohol and gambling can't just necessarily just regift something they didn't want, unlike a recipient could with most unwanted items. (I know there are things I would have moral objections to receiving, and those same moral objections would prohibit me from donating the item to charity or giving it to someone else.)
7) It's unfair and un-fun for participants if they know there's a significant chance they'll get a "gift" they have to immediately throw in the trash - especially if they object to supporting that particular industry and they know the money has already been spent on their behalf.
8) It's easy to say "just sit out," but that's not always feasible. These gift exchanges are usually a large part of the planned party, and some offices make it socially impossible to back out.
So given all those things, I think it's reasonable for a work party to have a "no alcohol / no lottery tickets" rule, even if most of the people there like them. It would also be reasonable to ban other things - tobacco, pork products, pornography, etc. (I think banning things like "all animal products" would be iffier because of point #5 - ensuring your gift was animal-cruelty-free is a much larger burden than just avoiding a few broad categories.)