I'm quite tempted to just give up on this whole thing. It looks like the site is simply at nakowa's mercy. He's promised me in the past that he won't play any more, but never sticks to his word. So what do I do? Continue to let the investors take these horrific losses?
Several people who have run gambling sites chimed in on reddit, bitcointalk.org and IRC with a similar comment: "1% is too low"
And on CYA front: make sure the website text frequently notes the "high risk" nature of gambling and investing, because it is a startup business model and a startup website running on a startup currency
The insta-investing feature is nice in general, even if investors lost a shirt or two. Innovative.
YES, it is wise to raise house edge to 1.98%. That's my advice, which will hardly be accepted.