What I cannot grasp yet is how XBet.IO takes the 1% cut? If they never have access to your "bet". how does the CounterParty network know that it should send 1% of the profit to XBet.IO's address?
Because the 1% is sent to the feed issuer (xbet in this case) by the counterparty network after the result feed is published.
The % is actually decided by the issuer, so you could eventually publish "free" feeds to bet on...