Colorado had an 18.8 percent chance of winning Monday's lottery after finishing the regular season with a 16-25-7 record, worst in the Western Conference.
The Panthers, who finished last in the NHL with a 15-27-6 mark, had the best odds of winning the lottery at 25 percent but had to settle for the No. 2 pick.
Portland Winterhawks defenseman Seth Jones is the No. 1 ranked North American skater according to the NHL Central Scouting Bureau.
Jones is the son of former NBA player Popeye Jones.
The lottery adopted a different format this year, with all of the 14 non-playoff teams having a shot at the first overall pick. The remaining 13 squads will be slotted in reverse order of their regular-season points.