There is no doubt here. He cheats. The question is actually 'Does it really matter?'
Okay, maybe cheat is a bit strong. He counts the cards. He has a knack of knowing what your holding in your hand. If he does cheat then it has gotten to a point where it isn't deliberate, perhaps not even conscious.
Back to the question.
No. I don't play cards with my friends because I want to win. If I were doing that there would be money on the table. And you could bet your but most of the money would end up at my end of the table.
It is true that winning isn't everything.
Is is also true that losing isn't nothing.