Some suggestions for a more "realistic" arena:
1) No bets against yourself. You'd just lose on purpose and win.
2) Increase the prize for winning a fight. 5 gold? That does not earn you a day's food...
3) First off, you would be able to bet quite a lot for your team, but as you gain fame (and notoriety) in the arena by winning just about every fight, you can no longer get as much money back for your bets, because the odds no longer favour you. You've become a "cash cow", a certain winner. This lowers the risk involved = lowers your winning rates.
4) Even after you've received the most honourable status of Cash Cow, you can still bet and win a lot of money as long as you are not fighting on the field - just appearing on the field will reduce your winnings a lot. RISK is the idea of betting, and most of these guys complaining that they can't risk 1000+ gold on a fight are whining because they know that they'd certainly win in the arena at least 3/4 of the time... But how many would be willing to bet 1000+ on a fight they can't win by themselves, on NPC Red and Blue teams?
I thought as much.
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Another idea:
- Battles fought in the arena cause actual injuries. You don't die, of course, but you will waste a few days resting after a good showdown. I thought it was rather odd that I could fight dozens of battles during the first day, in the morning of the first day in fact (later on, I was surprised to find that the sky does change even in the arena)... Thanks to the arena I made 10,000 on Day 1, even though it took me many RL days.
