You can find an explanation in the JP wiki.Originally Posted by Unregistered
Briefly, it's sort of like Disasters, with a chance to get SSR drops directly from Expert raids and above, but event battles also drop a specific event material and event Gatcha tickets which can net you a wide range of goodies. Accrue a fixed amount of a specific event material, and you get a prize. Normal and Expert difficulty fights have two 'color' options which give slightly different rewards, both for guaranteed rewards and in the Gatcha. In this event, Red group battles lead to a SSR eidolon (water) prize and SSR weapon (thunder) in the Gatcha, while Blue group battles lead to a SSR weapon prize and eidolon in the Gatcha. The Blue group battles in this event are considered to be more difficult. Ideally, you want to farm one color for guaranteed material trade-ins, and then farm the other color for Gatcha chances for a full LB (assuming the Gatcha tickets are different, which they appear to be). Both Gatchas can also drop merit points, which unlock an additional set of prizes at fixed tiers of points. Ragnarok difficulty also appears to exist, and drops a large amount of materials and tickets.
In all, you can get 1 of each SSR from color material prizes, 1 from merit point prizes, and you'll need to pick up the remaining two copies from the corresponding color Gatcha. The weapon for an SR kamihime is also featured as a color prize, a merit point prize, and as a Gatcha reward, and is relatively easier to pick up than any of the SSR rewards.
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