For each player $P_i$, let $\sigma(P_i)=k_i$ be the number of tickets player $i$ bought.
Furthermore let $(\sum\limits_{i=1}^n \sigma(P_i))^2 = H $ by the number of tickets given "to the house".
When the lottery is done, if a house ticket wins then every player loses.
In this scenario a player has no incentive to buy any tickets after the first.
For a players first ticket his chances of winning are $\frac{1}{H+\sqrt{H}}$
However his second ticket gives a probability of $\frac{2}{3\sqrt{H}+H+2}$.
With a bit of calculus it's easy to verify that their probability is no less than before buying the extra ticket. So they have no incentive to change, even if the ticket is free.