Anything that boosts tf2s popularity is probably a good thing, but when I see betting all I think of is problem gambling. I don't know how cs lounge works, but I think (and hope) that what you're saying is that there's no cut being taken out of the bets, and you don't gain anything from people losing? Because while gambling in itself is a bit dangerous, the combination of gambling and the gambling company itself using every psychological trick in the book to make people bet as much as possible is extremely damaging to a lot of people.
Obviously I wouldn't begrudge you making money out of this, quite the opposite considering the work that's been put in and the people who have contributed, I just really want to know that people aren't going to be exploited etc
Anyway yeah I think that's what you have been saying, that all the losers' items are redistributed to the winners, but I can't be sure, and I'm kind of surprised that a thread about setting up a gambling site has gone five pages without really addressing these issues.
Cheers and thanks for taking the time to make something like this, even while you have exams on etcetera