Basically the way it works is - you start out with $0.01 for free; if you lose everything you can always get a penny back. You gain money by playing others 1-on-1 in 1 of 2 little minigames. Each player has to "risk" the same set amount of money (based on the level chosen to play at, there are 30 levels, the amount risked is equal to (2^(level-1))/100). The winner gets the money put up by both players, effectively doubling the "bet".
The company itself makes money through ads - before each game there's a short video ad. You can choose to skip it, but they ask you a question about the ad before you can continue. I dunno what happens if you get it wrong - they're stupidly easy contextual questions ("WHO IS THIS AD FOR?" Dell. "WHAT IS THE NAME OF THE GIRL IN THE AD?" Katie.)
Given that there are about 4 different ads and 2 questions for each ad, and that its the Dell ad 80% of the time it's much less of a hassel than it sounds.
In any case, if anyone wants an invite to try it out (I only have 3, and its invite-only) just leave a comment here. Since I have so few - if more than 3 people want to try could someone who got one of mine give them one too? I hate to leave people out :3
That, and there's a bit of a pyramid scheme.