I think this was a simple mistake to make and that no intention was made to harm anyone. Obviously they have nothing to gain from such outrageous claims as playing at a casino cures cancer. From what I can tell the seo firm used software to generate pages and it auto replaced some words in prewritten articles.
Llyod is without a doubt one of the most honest affiliate managers and one of the most honest people that I know. I respect him not only for his professionalism but also for his personal convictions.