The thing is we are building a platform with no house edge, the winner will be decided by the players itself. we just charge a transaction fee for being a middle man
Now this is going somewhere interesting. If you don't mind, would you like to share more details about your platform like what the format of P2P lottery and how players will pick winners among themselves?
I think that the 33.3% is a generous win ratio and I think many players may be fascinated by such a high chance percentage in a lottery game.While you may start out small as you say but based on the participation of people it may become a hit and it may turn into a big lottery.Of course you will have to adapt to changes if this happen.
But it also means only 3 players will play per game. I don't call something lottery where I can only win 3x of the ticket amount. It will be more or less gambling and there are many other games with much more interesting formats like sports bet, multiplayer dice, crash game, etc to win such odds. People buy lottery tickets to hit big jackpots. Buying ticket to win 3 times won't be fun as a lottery.
The higher the odds, the lower the winning chance. So it is somehow balanced. You will either go for a bigger prize or a higher probability of winning. That's fair.
Also, the higher the winning chance, the more expensive the ticket I assume. So the players will be torn between just taking the chance and pay for a cheaper ticket or trying to really make some money and pay for a more expensive one.
Umm! I don't see much clarity in your suggestion. It would make the game unnecessarily complicated. There cannot be multi-rates to enter same lottery. Better and easier way is to allow users to buy as many tickets as they want. Higher the number of tickets, higher the probability to win and higher the cost. Simple!