[Iceman]

I assume he means 25% of net losses over a period of time. So if you make mutually cancelling bets with him and with Pinnacle, and you win 10000 and lose 11000 on his book, while you lose 10500 and win 10000 on Pinnacle, he'll rebate you 250 of that 1000 but you'll still be down 250 overall. It's like a poker site agreeing to refund part of your rake - it will improve your results but it won't guarantee that you will become a winning player.

As for how he makes a profit, it's a lot better to get 75% of the profit from someone's action than 0% of it. And only a small fraction of players can even overcome the -110 juice in the long run - if he gets square action or roughly balanced action then it's pure profit.