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Well in this case the "unfairness" (loaded term) would the lottery commission going out of their way to accommodate this scheme. If this outfit wanted to arbitrage the lottery they should have to go about buying the tickets any other party would have.

If the state wants to encourage this kind of large scale game playing, then they should outline the process for taking part in it clearly and ensure everyone has equal access to the tools that enabled it.

It's tough to draw a clear bright-line rule for this, but the line sits somewhere between "buy 10 tickets" and "buy every ticket". You can write a law saying not to run this kind of operation and let the jury decide whether someone broke it.

It doesn't matter if it's actually unfair or not. What matters is if it feels unfair.

You might be right. But to me, this doesn't feel any less unfair than a lottery does in the first place. But I probably don't understand the state of mind or motivations that would compel someone to buy a ticket in the first place.