[Karmic]

It is a scam because they are keeping part of the deposit. If you lose all of the money you've won from the free contest then you don't need to bet 20x your win to get that money back, you've already lost the money. They are keeping $190 of his own money deposit, plus $365 of his winnings to cover a $250 payout, that's definately not right. Money that wasn't awarded as part of the bonus should not count towards it.