This idea of putting capital down as potential winnings creates an interesting dynamic for gaming. You'll definately be playing with other players who are more deeply passionate about the game and not necessarily pros, but I guess to more you put down, the more likely you'll come across more confident players. I think it would definately incentivise proper play in team games as opposed to the throwing or more selfish play that occationally happens.
From personal experience, joining a service where you pay money outside of the actual game has always come with higher skilled players. In particular, using Faceit for CSGO. There are many like it. You aren't exactly winning anything but you can opt in to tournaments and the like.
I think as long as its not just pros playing the game and using this system, it could be successful. Though I question the choice of PUBG. Tryharding in PUBG is incredibly boring. I can't see how people can play like they do. I couldn't do it but that may just be me.