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This article doesn't explain anything, and heavily engages in libel and other name calling.
That was the first thing that struck me as well. This article didn't even pretend to be objective.
Scammed? They played by the rules.
It just sounds like the reporter is pissed because he couldn't get in on the action.

If this is a scam then so is pooling in money with your friends and family to increase the odds of winning.