From my reading of the card you actually need to win COMBAT 3 times, not the HAND. So basically the other players start folding if they don't think they have a fair shot at winning combat and that gets around Ragnarok. This lets the Norse player bluff a lot more efficiently but that's about it. I have played a couple of games - once against and once with Ragnarok and as long as people play around it, it is not actually terrible.
Ahhhh, very good catch. So yes, it seems we were missing something. We'll try it again using this clarification and see how it goes.
Thanks for the input!