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Is flawed. First of all, if there are 2 fighters, you SHOULD have a 50/50 chance of choosing the winner. This is not the case. After playing this a lot, I have found that either I am VERY unlucky, or Rockstar makes the odds against you, about 70/30.
And I don't gamble in real life... But if this was real life, why not have 2 people place equal bets on 2 contenders, and then split the profits? It would work in the game.