Yes it does!
What if a bunch of players want to play together?
Okay, I have an Idea.
Firstly, for it to work, the entry fee would have to be taken from the competitor/s when the game starts not when you join the arena.
The idea is: the more people, the lower the cost. This way we won't need a player limit, but a maximum amount of players instead.
Eg.
If 1 person joins the arena and starts the game alone, they would have $500 taken from them, but if 2 people join, it would cost $400 each and so on.. (The money would be taken depending on how many people join when the game starts) and the maximum amount of players could be 10.
With this idea, not only can people play alone when no one else is online, but it is also evened out with the price so people won't hoard too much.