That's 40% reduction in income. That would mean a 40% reduction in spending. That would mean we were just like all the other sites.
I apologise for touching some sort of soft spot here but clearly, reducing the house edge to 3% would make it a greater site to play on and also mean you'd giveaway more lottery tickets, meaning, if people buy them, you go in profit if they try and get the same percentage each round or something.
He hasn't quit, he's taken on extra help as his business model works so well it is now too much work for him alone.
Nope, you will not be like all the other sites, you will be in a better position to be competitive with them. A 1% reduction will already place you in a better position to compete with other gambling sites. When you changed the business model from a faucet site to a gambling site, you effectively changed the original concept and the original goal for this site.
When you were mostly a faucet, you had to subsidize the faucet payouts with the gambling income, but now you are re-defining yourself as a gambling site and that changes your target market. Gamblers wants a low house edge and a fun experience.