No... It charges silver. I left the page open when it actually loaded (hammered it with a auto-refresh tool till page showed up) and tried rapid clicking entries. Many 200's, but occasionally worked. The account silver level decreased. Probably, you can't see it, because when the page errors out, it can't read available silver.
The giveaways with all those entries you circled have been up for at least a month. And 1pt fee, if you dump nearly all daily silver into it, is perfectly reasonable numbers to have. Very likely, many alt accounts and bots.
I can't reproduce this bug you claim that ignores level. Do you have a proof? Are you sure it's not a display bug because it can't reach the server, giving illusion of entry.
Speaking of which, I'm not sure why you care so much about "max" level when barely anyone creates for them. I can count on one hand the number of these in a week, maybe month. And let's be honest. Most of the people who reach it won't continue making giveaways when they do, and if they do, it's more recycled freebies.