Good lad sharp! its a good idea :) ! Since the current arena is a field of salt, and and no one goes dere dese days, its a useful idea, witch will make pvp more alive and more friendly, since everyone will know wut he is up ter, i didnt get it if the person still looses ALL of its stuff when he get killed or defeated, but if dat will happen, i think we should make dat as an Option too, So you will loose only the item dat you put in as bet. and when some ppl just want a little fight, not loose ALL their stuff, they can pvp more often, without getting empty after their first loose, unless its a big fight with big bets ;), but still Fighters agree on what they loose or what they gain, witch will be probably a lot more friendly, less salty PvP.
Also later there can be tournaments`n stuff, Official or unofficial.