I expect it was reported by the guy who started this thread (and rightfully so) - hopefully now Apple will freeze that developer's account and prevent any payments from being transferred. The puzzling thing is how an app like that even made it that far in the first place.
No. Five tickets with 1/5 chance each don't add up to 1. The real number is closer to 67% chance. To get a 99% chance of winning the $10K, you'd have to buy 21 tickets. The trick to calculating these things is to consider the chances of not winning, which are 4/5 for each ticket. Then, to calculate the chances of not winning any prize with N tickets, you raise 4/5 to the power of N. The resulting number is the chance of not winning the prize with any of your tickets, so subtract this number from 1 to get the chance the chance that you do win the prize. I wonder if it would have been allowed if the "game" contained an element of arcade and not just luck. For instance, I could think of a game where my server randomly sends out a push notification of "game on!", and the first person to press the big "play!" button in the app wins the prize. Since I am currently making money on the app store, I'm not really itching to find out whether this would get me banned
