Historically speaking, Multicolour betta fish are said to possess gotten their name from a historical clan of Asian warriors called the "Bettah." They got these warriors' names because about 150 years back people enjoyed participating in a popular sport that involved the fighting of two of the warrior fish. (In fact, the activity was so popular that it was regulated - and taxed - by the King of Siam!)

One interesting note about Multicolour betta fish fighting is that, unlike cock or dog fighting in the west, at Siamese fighting fish tournaments, the actual fight was more to test the bravery of the fish, rather than fight to see how much damage could be inflicted, or even a death match.
Spectators bet how long a specific fish would fight, and which you might stop trying first. (In fact, most fish would only fight once or twice, and then live out the rest of their lives being pampered and employed for breeding.)
Natural Habitat
A Multicolour betta fish natural habitat is in shallow, tropical water. This is because they should have the ability to surface frequently, to be able to breathe air. They can be found in nature in rice paddies, drainage ditches, slow moving streams and fresh water ponds. Multicolour betta fish have even been known thrive in large puddles! Their natural food source is insects and mosquito larvae.
How Breeding Began
Based on historical accounts, a friend of the King of Siam, Dr. Theodore Cantor received a pair of breeding Bettas from the king in 1840. A doctor bred them and studied them for quite a while, and then wrote a scientific paper about them, providing them with a Latin name of "Macropodus Pugnax." However, soon after his paper was published, Dr. Cantor discovered a species by that name already existed, and and so the fish were renamed "Betta Splendens."
Several breeding pairs of Bettas where provided for Germany in 1896 and then in 1910, Mr. Frank Locke of San Francisco California imported several Bettas to the U.S.A.