Yes, the "play" bet wins if the dealer doesn't qualify, regardless of the player's hand. This is according to standard Crazy 4 Poker rules. (The "ante" bet pushes in this case, which contributes to the house edge.)
What you're seeing at your casino is how Crazy 4 Poker is played virtually everywhere.
A casino that I visit occasionally, Downstream in Joplin, MO, has Crazy 4 Poker. And there, if the dealer's hand does not qualify with a king or better, then they pay on the player's "Play" bet even if the player's hand is beaten by the dealer. Does anyone know if this common? Would this change the minimum hand that the player should bet in order to minimize the house advantage?
The way the Wiz wrote the game on his site, I wouldn't have guessed that. If the dealer doesn't get King high, someone with 8 high dumb enough to play wins his play bet and pushes the Super Bonus?
That's how it's supposed to work. Have you encountered different behavior?
I'm not positive, but I think the dealer qualifies too much for this to make much of a difference here. Do you lose the Super Bonus bet if the dealer fails to qualify and he beats you? If that bet pushes as well, it may change things.