My understanding of MTG rules is a bit rusty. Does "sacrifice" only apply to the player's creatures in play? Or, could you target an opponent's creature?
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Yeah it would have to be one of your own. To get your opponent's, it would have to say "target player sacrifices" or "your opponent sacrifices"
But also unlikely they'd tack on a bonus of making your opponent sacrifice a creature to Draw 3 cards
You're allowed to sacrifice permanents you control. Generally in this case that means creatures on the battlefield on your side. So if you stole an opponent's creature you could sacrifice it to this effect. If your opponent stole one of your creatures you could not sacrifice it
This works even if the creature dealt damage to you
Yup, as long as you control it, it doesn't matter who it dealt damage to, like [[Eidolon of Revels]] is prone to do