Nope. Scam accusation relates to video contest, not primary FJ activities (casino).
The second part involves them allowing honest players to be cheated by dishonest players in their poker room.
You can't say they're advertising scam, unless you see them advertising video contest, which is now closed afaik.
I guess this is true. They advertised the contest with huge prizes for months, extended the deadline by another month and then paid out only tiny prizes. But no, they aren't advertising for the contest which is now over any more.
It's also not a scam in classic meaning, as I don't think FJ did directly benefit on all that.
There are many was to define "scam" and I agree FJs actions do not satisfy all of them. They did directly benefit from this contest though. They put out an official looking press release which was picked up by many affiliate sites and blogs giving them the appearance of a site which should be trusted to. Then there's also the 10 videos which FJ jack now exclusively owns. Some of the contestants even paid to have their video hosted on other sites to get more views. All of this directly benefits FJ.
They didn't steal anyone's funds, you could say they stole peoples' time and work though (assuming they're actively using submitted vids).
They owe the contestants the prizes they promised. Period. Whether or not they are actively using submitted videos is irrelevant.
What I think happened here, is FJ fucked up on starting a contest without proper, clear T&C (which is way too common in BTC gambling world). I'm pretty sure they made a mistake and meant 3 BTC to be divided not 3 BTC each. But then, instead of simply saying 'sorry, we made a mistake' they went ahead with weird excuses making it worse.
Even if they meant to say 3 BTC divided, that would of been .3 BTC to each. They still only paid out 10% of that (.03 BTC)!
Their argument is basically, "we didn't have to pay out anyone anything if we didn't want to, be happy we gave .03 to some of them"