Biggest problem is the owner can win himself on every draw and it would be impossible to know.
The neatest thing about BitLotto is that absolutely no regulation or checks are needed to prevent cheating by me. It's *impossible*! I'd have to actually alter the Bitcoin blockchain! Good luck with that!
-tickets are bought before the draw - each one has a unique hash - can't change it
-address for the draw can be looked up -eg blockexplorer
-number of entries can not be faked
-each ticket will have an address of who sent it
-AFTER the tickets are in, the draw is done using a hash of block data and Mega Millions numbers
-impossible to manipulate to get a certain person to win
-payments can only go to the EXACT same address that sent the ticket
-payments can be looked up to see if I paid
Even *IF* I played one day it would be impossible to help myself win. I have the exact same odds as everyone else. No government regulations required! I can't cheat. The most I could do is not pay or pay to the wrong person. I'd be crazy to do that as everyone would know right away and BitLotto would be over. It's in my best interest to keep paying so I can take the 1% as LONG TERM it's better for me.
IF I ever did steal. (And everyone would know it right away!) I welcome the authorities to arrest me for I have stolen and committed a crime. I'll never be able to cheat though even if I wanted to.
If you can think of any way, that if I play, I somehow have a better chance at winning I'd love to hear it!