Diabolical Scam

I saw an advertisement for Swoopo and was a little curious why the deals seemed too good to be true. Turns out that to place a bid you need to spend $1.oo. Each bid increases the price of the item by $0.15 or $0.01 (and incidentally increases the time of the "auction"). They are just raking in the cash on these items. I can't believe that people are willing to gamble on winning the ability to pay for these items. The real winner here is swoopo, the expected return for the bidders has got to be so low.