Just lately, we haven't won any coin flips or advanced in the lottery. But I don't recall that as being an inviolate rule back in the '80s-'90s.
I did a quick run-through of our draft history since the Kings have been in Sacramento. There have been four fundamentally different lottery systems in that time.
Envelope System, Equal Odds, 7 draws for 7 slots (1985-1986):
1985: Kings get #6 out of 7
Envelope System, Equal Odds, 3 draws for top slots, then by record (1987-1989)
1987: Lottery position #5, Draft position #6 (no hit, dropped 1)
1988: Lottery position #4, Draft position #3 (hit, pick had been traded)
1989: Lottery position #5, Draft position #1 (hit, Pervis)
Ball System, Not Heavily Weighted, 3 draws for top slots then by record (1990-1993)
1990: Lottery position #5, Draft position #7 (no hit, dropped 2)
1991: Lottery position #3, Draft position #3 (hit)
1992: Lottery position #6, Draft position #7 (no hit, dropped 1)
1993: Lottery position #4, Draft position #7 (no hit, dropped 3)
Ball system, Heavily Weighted, 3 draws for top slots then by record (1994-current)
1994: Lottery position #8, Draft position #8 (no hit, no drop)
1995: Lottery position #13, Draft position #13 (no hit, no drop)
1997: Lottery position #11, Draft position #11 (no hit, no drop)
1998: Lottery position #7, Draft position #7 (no hit, no drop)
2007: Lottery position #10 (tied 8-10, lost coin flip), Draft position #10 (no hit, no drop except for coin flip)
2008: Lottery position #12, Draft position #12 (no hit, no drop)
2009: Lottery position #1, Draft position #4 (no hit, dropped 3)
As you can see, we did reasonably well in the envelope system, though not great. Once the ball system started we have not had good luck. In our 11 lotteries, we have only hit once, and that was to "remain" at the #3 slot. On the other hand, we haven't dropped much, either - a total of 8 slots in 11 years.