The 'inflated balance' thing (if true about Roo, which I don't doubt) isn't new - Stake.com does it too. Stake gives inflated balances to certain streamers and they can only take a fraction of the winnings, but the bigger amounts look better on streams. It's borderline scamming especially considering the fact that people wagering in the 'races' with non-inflated balances are at a clear disadvantage, but hey, if people's withdrawals aren't explicitly being blocked, no one gives a shit...
Yikes, that would be mighty disappointing if true. It's explicitly illegal in a lot of places (e.g. Nevada); and for pretty good reason.
One of the things I really liked about the early days of bitcoin gambling was even in the absence of regulation, the major players were reputation-driven and there was virtually no bullshit and it was clean/honest/transparent. You could even give them your email without fear of being spammed by promo shit, etc.
I guess it's a bit like that batman quote: "You either die a hero, or you live long enough to see yourself become the villain."