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Yep, it was suspicious from the start. Noname with no clear terms and answers.
Maybe joke, or maybe he want games for his site for free.

(+1)

It's so weird. You have nothing to gain but you risk someone might take legal actions. This is fraud, right?

Probably. I don't know what power the jam text has, which besides can be changed. Unless you can be charged for illegal use of someone else's work.

The text can be changed but people make screenshots all the time and itch has probably versions saved including IP addresses. 

ChatGPT says: Even if the competition is private, failing to deliver on a promised monetary prize could still be considered a breach of contract or fraud, depending on the specific circumstances. If the amount of the prize is relatively small, you may be able to file a lawsuit in small claims court. This is a less formal court process that can be more affordable and quicker than a traditional lawsuit.