Mayor Marion Barry yesterday announced the nominations of two new members of the D.C. Lottery Board and renominated Carolyn B. Lewis, who has served on the board since 1981.

The nominations, subject to confirmation by the D.C. City Council, also include Ralph Waldo Emerson, a Ward 3 resident who is general counsel for the Center for International Technical Cooperation, and Percy M. Battle, a resident of Ward 8 who is the retired chairman of the D.C. Police and Firemen's Retirement and Relief Board.

In another lottery-related development, board officials yesterday denied any favoritism in the award Wednesday of a contract to JAM Corp. to create a $500,000 advertising campaign for a new version of the city's Lotto game.

JAM employs Effi Barry, the mayor's wife, and Donna Lewis, daughter of Carolyn Lewis.

Douglass W. Gordon, executive director of the board, said the D.C. corporation counsel had advised that the contract award was acceptable if Carolyn Lewis did not vote on it and if Donna Lewis did not participate in the advertising project.

Lewis, in fact, did not vote and the award was approved by board Chairman Brant Coopersmith and members Alice T. Davis and John W. Posey.

JAM competed with one other firm, Bell & Associates, for the contract, which had been set aside for minority companies.

"The corporation counsel reasoned that by considering both competitors we would be ensuring competition," Gordon said. "If we were to eliminate one for any reason we would be in violation of our statute that requires competition."

Gordon said the contract with JAM has not yet been signed and, until it is, he could not divulge the company's fee.

The advertising campaign will promote a new variation of Lotto that will offer prizes for second and third-place finishers in addition to the jackpot winner. The minimum jackpot will be set at $250,000, with players choosing six numbers out of 36 instead of five out of 40.