The dealership will lose far more in customer sales if it doesn’t settle this properly. The man won the car fair and square - let him have it, swallow the loss and learn your lesson.
Too late for the dealership. The jig is already up since the story made it this far. This could have been (and could still be) an awesome opportunity for the dealership to make some real money by using this for marketing purposes. It sounds like the owner is a real dumbass.