Interesting, Larry. I believe you are right if the numbers are drawn at random, In fact, I created a crude spreadsheet, and found that #1 won about 60% or the time, #2 won about 20% of the time, and no-one won about 20% of the time. I'm not sure I believe those numbers, and haven't done any qc on my spreadsheet to verify.
However, the intent of the puzzle was that each player gets to choose which of the remaining numbers to take at each turn. Sorry I didn't state that clearly.
Does that change your answer?