I completely understand your concern but you also ignore the part that by keeping 266 BTC max bet, users can bet 266 BTC on dice with 98% win chance and 1.0102 payout. With 266 btc bet, they can win 2.7132 BTC.
I only agree with you on the part that 266 BTC is too much of a bet but I can't see anything wrong there. Maybe there are players who want to bet max amount and play with highest win chance but I find it a little unethical when difference between max win and max bet is 20 times big and I think it's ironic if they really expect someone to deposit and roll 266 Bitcoin in a single bet.
his concern is valid, let me give you an example:
you bet $10 on a 2x payout and win $10
his concern here is that even if you bet more, say $50 on the same 2x payout, you still only win $10
you shouldn't be able to do that, since you are basically donating money to the casino
the accepted bet amount should bever be more than: profit / (payout - 1)
Because you accepted the terms and proceeded with the unusual stake. If you fail to read instructions, then that's your problem.
the right thing to do here is not to accept the bet, rather than showing a pop up with an option that enables you to still place the bet knowing that you will not get the full amount when you win.
this is textbook dark patterns.
Couldn`t agree more here - I have seen the same thing happening on Betfury/Starbets quite a long time ago (no idea if they changed it) but it was super annoying and unfair...
Edit: There was not even a popup back then either.