I actually had a similar Idea (Ofc not using Toms and Jerries).
I was, and I am still thinking of coding a much better version, similar in principle. Just with the Highest Quality Website, API, and a lot of features for users.
If there will we be people who want me to do it, I will prob. do it someday.
PS. Let's analyze your system. I will be back with my report today.
Not much to analyze, it's pretty much a variation of a dollar auction (the jackpot), with some "pvp" elements. The owners of the place would get lots of easy money.