It's like selling a sickly horse to someone on purpose for the money. If he owns the site, he can easily manipulate the chances of him winning the lotto, think of it as a casino owner paying his employees of a chance game extra to increase the chances of him winning. The worst thing about this is that he didn't tell anyone that he was the owner of the site, and he lied about not establishing it too.
He's down in the deep end on this one. He could also get arrested for this, unlikely though. Cause, 'steam money isn't real money'.