Yeah, it eats up on the profits which would be bad for them but at the same time they will have zero potential to lose money, either investors make money and they take a cut from it or they lose zero, which is why investment is a good option. Plus, think of all the money they could use to improve even further, more signature campaign participants and a lot more developer man-hours that could be bought with it.
Yeah it eat ups the profit that supposed to be their but come to think of it if they have more investors came they can maximize their bankroll together they can make their platform sustainable and imagine if many bettors will play they can still earn a decent percentage by the help of investors money, so its up to them if they really want to do this or they select stand by their own.
However considering they have given out a thousand dollars each competition and now made it 500, I doubt they are really short on cash so I am not sure if they will do something like this.