I look at this as being similar to poker rules that don't allow freerolls. If a dealer forgets to burn a card before the flop and you notice, you have to say something immediately. You can't wait for the river to see how you do and then, when it looks bleak, say the dealer forgot to burn a card and we have to go back to the flop. Too late, the action stands.
Similarly, the casino agreed to the terms. They could have stopped play at any time, but didn't. They either didn't know what they agreed to do or they did figure it out at one point and decided to play it like a freeroll, knowing they wouldn't pay out.
Let me pose this...Let's say I propose a bet to somebody, let's call him Borgy. I propose that we will flip a coin 100 times for $1,000 per flip. Every time it lands on heads, I win. Every time it lands on tails, Borgy wins. We have to use a coin of my choosing, but Borgy can inspect the coin before we flip it (and I even let him go to the store and buy it - I just specify which coin). Borgy can elect to stop our coin flipping session at any time, but I agree to not call it quits until after 100 flips at the earliest. Is it my fault that I choose a two-headed coin, Borgy doesn't look at it before we start flipping, and doesn't call off the session even though it seems to be going particularly well for me? If not, why is it Phil Ivey's fault that the Borgata didn't inspect the cards before dealing or at least at some point during play when it seemed to be going well for him? The only difference is, Phil Ivey was still taking a risk since he could still lose. I had no way of losing the coin flips.