In an embodiment, a gaming system includes a plurality of gaming devices and a controller configured to communicate with the gaming devices. The gaming system enables a plurality of players to play an interactive game in a non-competitive mode and in a competitive mode. If at least two players play the interactive game in the competitive mode, for a competitive wagering event, which includes a competition between two players, the gaming system determines a winning player and a losing player. The gaming system causes the winning player to contribute a winning player portion toward a wager associated with the competitive wagering event and causes the losing player to contribute a losing player portion toward the wager associated with the competitive wagering event. The losing player portion is less than the winning player portion. The gaming system randomly determines and provides any awards to the winning player based on the wager.