NO it is NOT allowed. All lottery game must be marked as lottery in the title! You can report this by going to the game, click his name and "Report."
(One could argue it is a "skill" game as it has NoLuckCycle enabled. You are always allowed to report through, and even if it is deemed a skill game what he is doing is morally wrong.)
"I blacklisted the player" +1
P.S Relevant link: https://www.warlight.net/wiki/Lottery_game
(Note point 3. "It should be reasonably clear how to win. If the winning strategy is well hidden, you should explain it in the game description.")
Edited 4/14/2015 22:56:02