Reminder, this is the bet...
You get 7x as many wrestlers in your stable.
If the 1A wrestlers simply need to work hard enough and that's it, then this is clearly slanted in the 1A selector's favor, unless the person declining the 1A pool feels that the 1A wrestlers, in fact don't work as hard as the 3A wrestlers.
If both groups work equally as hard, and a large school wrestler does not have a significant advantage over a small school wrestler, this clearly favors the 1A selector. It would be ludicrous to turn down a bet such as this.
Even if the number of 1A varsity wrestlers at sectional is half that of 3A, then the advantage only increases for the 1A selector. Again, unless you think that the 1A wrestlers don't work as hard as the 3A wrestlers, and by a substantial margin.