Each site in the database will need to have its own prefixes for the tables to differentiate each site. Dolphin does not ship with this built in, even in 7.1.; you will need to go through the code for Dolphin, and for third party modules (which, by the way are usually licensed for one site only, so you will need to buy a copy for each site) as well, and code for the prefix usage. Other than that, yes, it is possible with work.
As for the banning by your host, that is going to depend on your host; Dolphin can be a database intensive application depending on what is being done with the site. Three sites running with many users could cause you to bump up against your database resources. However, that might not happen; it could but depends. If you don't get banned, then you will be asked to lower the resources you are using or they will throttle the sites.
I guess we should ask this of you, "Why do you need to run three sites on one database? Is it a limitation by your host to just one database?"