May I ask who is holding the funds? I guess the goal is to raise more money then is being given away, which is quite a lot for a new service.
Using a multisig wallet with an escrow that needs to sign off would give a lot more trust I guess.
I don't think they already have this amount of money to escrow it. I thought their strategy was to collect this money using people who buy tickets, They already said on the website: "Draw will happen when 100,000 tickets are sold." So people should wait until all tickets are sold and then they will have 2 Million dollars (100,000*20$). So in the final point
if they pay the winners, they will end up earning a huge amount.