That's usually how it is with most businesses.

Remember CEX, how they had one of the largest BTC mining pools? It at one point had over 51% hashpower and look what happened 6 months after they started having server issues and bad luck.

Same has happened with SatoshiDice. I think the problem is that the new owner lacks some experience and motivation and drive. ANd I also think he owns a few different business ventures and just doesn't have the time to deal with the issues for this site.

Like I said before, he really needs to hire some support staff.