A random number is generated from range 0-599. Whoever owne the range where number lies is the winner. The higher the bet, the higher the range you own from the total pot.
So it's not about who bets a larger amount, but who will have more luck. I think this game can be explained by an example:
The situation in the lottery on the Freebitco website is very similar. You buy or get for playing there tickets. Who has more tickets, he is more likely to win. However, it often happens that someone who has several tickets wins, and whoever has millions of them, unfortunately, has nothing.
Betting a larger amount, just means you have higher chance of winning. It does not guarantee winning. So yes from your example it is similar. In a real lottery system, sometimes there are no winners. In my game, there is always a winner.