I was more comparing the legality issue with the various forms of gambling. People have no problem throwing in $20 for superbowl squares but then it appears some people draw the line when it comes to raffles. Both are illegal gambling but they are more in the grey zone in my opinion (everyone is free to have their own grey zone limits).
Well, that and what the "house" keeps.
Usually when entering a March Madness bracket where there is a payout, the organizer doesn't keep 1/3 of the fees. Additionally, March Madness, the Super Bowl, etc. are large events happening a handful of times per year (combined). These raffles occur simultaneously and repeatedly, amounting to huge fee-free gains.
Berkbridge had $100k+ in sales in a month and a similarly illegal/unethical method for getting around a 10-13% fee collection; this is nearly triple that amount of fee savings. And at the end of the day, there may not even be a real "winner".