Replacement loco type likely wouldn't be a CEC corp. concern, though they may require RR logo removal to be "safe". They are very copywrite and trademark and licence conscious. They are not "original parts" oriented either, encouraging capable techs to improve things if possible.
The nature of game payout is highly variable on skill games. This is likely set up more for fun running by the youngest kids vs an actual skill challenge for max payout. The averaging system addresses a minimum of sorts for kids without skills, nobody goes home with "nothing" is the goal. Age groups stick to certain types of games unless one has a payout weakness, then the teens will line up to exploit it ,.... naturally 😁 So basically kiddie games have a high min, low max, real skill pays low for fail but high for success. I think the odds are very fair under a good Manager that follows the rules.
I think the regional tech for the midwest had Lionels as a kid....(lunch talk of decades ago) Him whipping up this design for fun wouldn't be a big surprise at all. ... I wonder who (name) did it?