First of all, I think what you're doing is incredibly cool from a technology point of view. I think it's awesome you guys are pushing forward on that front.
The Smart Contract is what requires reputation. As you are sending your bet Tx only to that. So it is reputation of code, NOT people.
This trivially duplicated argument for code is pointless. Bitcoin can be "trivially duplicated" too. Just ask Charlie Lee. An experience is more than just its code base.
That's really not remotely comparable. Let's say I make a copy of bitcoin, it has little to no for anyone because it's not bitcoin or interoperable with it and doesn't enjoy the network effect, blah blah blah.
But now let's take a smart contract gambling service, let's say I duplicate it and change your 1.9% house edge to 0.1%. Which I can sanely do, because I don't have any development or operating costs. Now from a users point of view, they are two services which have the exact reputation and trust required (same code) but one means they will lose 19 times less on average. I personally would gamble on the 0.1% edge on, I guess you're counting on people like me being in the minority?