Huttball, the new pvp warzone shown to be in The Old Republic is an open warzone that allows players to fight their own faction as well as the opposing one in a game of essentially bloodball (from games workshop).
It looks and sounds fun to me and unlike some other people, those who like to wine about anything new or different, I don’t see it as breaking story immersion any more than being able to swoop race, play pazzak or an arena would be since you would compete noagainst your own faction as well as with the other faction, often non-violently, in those games and people seem to want those in the game as they fit the story. Relax and just think of it this way, the Hutts are neutral in the war and will do anything to make a buck or to amuse themselves. I think they need to have a way to bet on games for it to truly fit in, story wise though.
Watch the Preview here: