This means this is a zero risk opportunity for developer isnt it since he/she will get 50 % of 1 % house edge of the wagered amount . It means that if he wager a 1 btc then he can get 0.005 btc from it too even if he win. Could perhaps play at 98 % chance to win to get more wagered
That's basically right. From an app-developers perspective, it matters not if the gambler wins or loses: They make exactly the same. However the investors still need a cut (otherwise they wouldn't invest). So it's the 50% split is of what remains after paying the investor enough.
@ryan, does faucet lost/wagered count towards the profit for developer?
MoneyPot.com pays for that in its entirety.