Could someone please explain how the payout structure for betting works? It's seems like there's a lot of confusion why 999 gem bets turn into a LOSS of 999 gems even if you bet on the correct winner.

My guess is a sizable bet needs to be made on the opposing side that exceeds your own bet. (In this example 999 gems) There needs to be an opposing bet of more than 999 gems total in order to win any gems on a max bet. Such a betting structure would prevent cheating or rigged fights. I could be wrong on this.