On the other hand the BitBet operators are strictly following contracts between themselves, shareholders, and bettors.
The action that creates a valid Bitcoin transaction is called a signature for a reason. In this case snackman signed a transaction to a recipient who had already GPG signed a contract with shareholders describing exactly how this situation would be handled.
As has already been said, a FAQ is not a contract and users should not have to read an entire FAQ to make sure they don't get swindled by gotchas. FAQs are for when people have questions (which are frequently asked), not mandatory reading. A terms and conditions that are presented or clearly linked to on each bet page would be a different story. Better yet would be an actual contract. Snackman signed a transaction, not a contract. And even then, contracts don't make swindling acceptable.
A very valid point.