It's be a mistake to say it has nothing to do with that, but the number of times you get to play is subsumed into the utility equation. It would be irrelevant if utility was linear.
The point is that $10,000 to me is worth more than 1% of the value to me of $1,000,000. Whereas I would probably pay $1.10 for a 1% chance of winning $100, though not on a regular basis.
The point is that $10,000 to me is worth more than 1% of the value to me of $1,000,000. Whereas I would probably pay $1.10 for a 1% chance of winning $100, though not on a regular basis.