Right, so that would be betting against the player.  They make money when the player loses money and they lose money when the player makes money.

Here's an example.  They are exchanging at a rate of 1:1.8.  The real rate is 1:1.6.  A player buys into a $100 MTT.  Betcoin debits 180 chips/.18BTC from their account.  .18BTC is worth $112.50.  WTN 'charges' Betcoin $100.  If the player doesn't cash, Betcoin profits $12.50 from the transaction (plus whatever fees WTN pays them for their traffic).  If the player does cash, then Betcoin has to pay them out at a 1:1.8 rate.  So if the player cashes for, say, $200, Betcoin has to pay them 360 chips.  But 360 chips are worth $225.  So when WTN 'credits' Betcoin, Betcoin has lost $25 on the transaction (for a net loss of $12.50 overall since they have overcharged on the buyin).  Obviously the more the player cashes for, the bigger a hit Betcoin takes.

Under this scenario, Betcoin is only making money when their players lose money.  Thats some sportsbetting shill type racket right there.  I wonder how many mysterious Betcoin-only disconnects have happened because they stood to lose too much money on the conversion if a player was running deep.