Well, I sent a support ticket to ToonSlab three days ago, marked as high priority and titled "Concerning potential illegal lotteries being hosted by ToonSlab" several days ago. It still has a status of "Not Viewed." Is the support system a black hole or something?
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The "support" link consists of volunteers like MD. I doubt sending that ticket is going to do anything. Expect about 10 days before they read your ticket. Took them that long for mine and it has been another week or so and no status regarding my issue.
I don't know if it's illegal, but I'm almost certain they won't have to worry about it. The profit(if any) they make from the lottery is too insignificant for any government to waste their time. Another thing is that there is no precedence regarding in-game currency which can be obtain for free. Gralats can be bought with money, but it's not mandatory. When you deal with the law, language is very important and has to be specific.
Example:
Rampage Jackson the MMA fighter is in a legal dispute with Bellator and the case might come down to the definition of "hard copy"