Yeah I noticed that (see "on edit") after posting. However it looks like no block will get the lottery due to the order of the if statements.
Holy shit, you're right.Big issue, the "VGB protocol" is completely broken not only in design, but also in implementation. No blocks will ever get the reward.
(Okay technically, blocks 249 and 250 alone have a small chance of getting the reward. But no other blocks!)
Come on lucky 249 & 250.
Before someone asks, changing/fixing it now would result in a hard fork between the updated and original nodes. It also makes the owner's premine more like 3% (2.2 mil / (14726880 blocks * 49 ea + 2.2 mil).