I guess I was a little confused at first. So what Dogs is saying is that he already had $500 plus in the account before using the free play. Dogs thinks he should be able to close the entire account because he had $500 plus before using free play. Is Dogs saying that they sent him the $50 Free Play to force him to deposit another $50, trying to freeze up his account so he couldn't withdraw on the $500 until he deposited the $50 with whatever roll over they had?
Seems to me he should be able to withdraw whatever he had in there before using the bonus but would not be able to close the account because he used the free play without depositing the $50.
I am sure this is not a scam, I am willing to bet they offered this to all of their customers regardless of balance they had. They just didn't look and say "oh this guy has $572 in his account, let's send him $50 free play and make him deposit $50 more, if he doesn't, we won't let him close the account!" That would be ridiculous. I am sure a bunch of players with Zero balance used this bonus as Dogs did.
Since you used the bonus you had to send in $50 to CLOSE the account. I am sure they would let you withdraw some but not close. I know it does seem petty to send $50, just to get it back but that's the rules.
Poor Nate is going by the rules and if he let's you close the account without sending the $50, his job could be in jeopardy.