Is using the Blender Game Engine for pyweek considered legal?

My team and I are wondering: is it okay to use the Blender Game Engine to make a competition entry?

Its not exactly a library, technically speaking. But then again, you can script your game logic with python, inside the BGE. 

What's the public consensus on this?

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Yes, you may use the Blender Engine in PyWeek. You may want to make sure you can distribute your game without requiring a Blender installation though (perhaps by writing a simple test and distributing it).
@macrobe you might want to have a look at gamekit on code.google.com for distributing the game as executable.