With the bet laid out, and the hoard already approaching, there was no longer any need to wait, as Luna summoned her divine weapon, with blinding light, so she reduced it to a smaller size, and less brighteness.
Thinking that Lily wouldn't know since she never showed signs of remembering her past, like she and Aurora did hers, she coated her blade, with the golden flames, blending it with the divine sword quite well.
It was eerily unnoticeable, but with Lily's heightened senses that even the smallest shift, she picks up on, she felt the change in Luna's divine weapon almost immediately.
Coupled with the fact, she vividly experienced Luna's memories, and she knows the type of person she is. She's the type to win no matter what, even if it means going, as far as cheating.
Lily didn't mind, even if she didn't plan on losing, she would still feign ignorance, because she has long decided to accept all parts of her tamed, the parts that make them unique.