Yes, playing with 1.0102x payout is the simplest, and, probably, the most stupid strategy for participating in a wagering contest. I'm aware of that. If it's not for such a contest, I never play with low payouts, even with 1.1x. My favorite ones are 99x, 120x and higher. When playing with 1.0102x payout all the time, it's almost impossible to be in profit after 10,000 bets. Rather, it's almost guaranteed that you'll lose 1%-2% of the wagered amount. But in the end it depends on the prize you can potentially get. If the prize is several times higher than 2% of what you must wager for it, then 1.0102x is the best. But if the prize is around 1% or even less than that, which is pretty often the case, then combining strategies is definitely a better solution because your profit from the participation will most likely be negative otherwise.
It is not the most stupid strategy do not worry about what people say,,, I have used it myself for getting high wagers, and for sure it means I end up with losses a lot quicker BUT I can stretch my playing and wagers a lot. What is a good strategy anyway? Martingale? Everybody knows all strategies fail eventually.
My favorite also is setting:
1, 1% of bankroll
2, Bet on x 1.02
3, If win, multiply wager x 1.02
4, Repeat 2-3, 35 times
If did not lose, you now have double of 1%. Use this on lowest payout until bust. Repeat again.
). The idea should be a variant for the contest already held, it shouldnt replace them but windice could hold them additionally to attract a whole new customerbase. 
saw him in the last contests top spots usually 
