Abstract: An Internet-based, computer-operated, and percentage-based lottery system and method operated by multiple users utilizing an electronic computing device, wherein each of the plurality of users input user-identifying information, a user-desired wagering amount, a user-desired winning percentage, of one of the plurality of varying winning percentages, and a user-desired number of participants, of one of the varying defined limits of participants, to form at least one user lottery pool having the user-desired number of participants therein and randomly selecting a number of lottery winners from the at least one user lottery pool based on the user-desired winning percentage and the user-desired wagering amount.