How can everyone here continue to side with BitLotto? It's been clearly proven that there is a flaw without an escrow service.
Any escrow service could also do exactly the same "trick" (running with the money) and even additionally has to trust the operator of bitlotto that he provides correct data in the first place.
Even if someone (like the operator) writes an Open Source program and publishes that, he chould still run a modified version in secret, and I'm not sure how feasible/possible it is to proove via a remte connection that you are ONLY running a certain piece of code. In the end you have to trust someone, if you hand over money and the approach of extending that trust over not too many people is a good one in my opinion. If you don't agree, you can do something else as well than play a lottery!