The script doesn't scrape any of the physical content of the website, no game names or game descriptions are scraped, just the flash game .swf's. The game crawler wont have any effect on the SERPs of any website scraped what-so-ever.

You say "some are paid for" meaning, I assume, most of them aren't. You must have got these games from somewhere. This script is doing nothing illegal, nothing people aren't already doing. It just makes finding and adding content to the site 100x easier and quicker.

I'll happily continue this discussion with you in PM.