Good choice, API freshwater master is a good kit to use, they are very reliable and accurate. Your betta tank appears to be cycled but the ten gallon is not even close because no nitrite is being produced. During a cycle, your ammonia will go up and will then start to fall as your nitrite goes up. Then the nitrate will go up, ammonia and nitrite will both fall to zero and your tank is cycled.
Put the gravel IN the filter, not on the bottom of the tank and you might get somewhere. Because the ten gal is not running an undergravel system, putting cycled gravel on the bottom won't do anything. A netting bag of cycled gravel in the filter will provide a source of bacteria that will then colonise the filter media. Put it next to the intake so the current washes some bacteria onto the rest of the media.
Test the pH of your tap water and give us the result. If it's coming out 8.1 and the pH in your ten gallon tank is 7.5 then acidification is occuring in the ten gal. This is common in cycling tanks but once you cycle it, the pH will skyrocket and your fish won't like it. You could also use peat or a pH down product to reduce the pH further while the tank cycles - 7.5 is still at the high end for tropical fish keeping and the lower the pH in a cycling tank, the less ammonia is free ammonia. It's a bit of fairly complicated chemistry - basically because ammonia is a base, at a higher pH, more of it is in its free form (NH4OH soluble ammonia) and less in its less toxic ionic form (NH4+). If you reduce the pH, more of the ammonia will become ammonium ions which are not as toxic.
Can you get peat? Try putting a bit in your filter, and a bit under the gravel in the betta tank because the pH is a bit too high. You could also use pH adjustors but they aren't always as easy as they look. The other option is oxyshells to correct pH but they are usually used to increase, not decrease, the pH. If the betta is happy and you can't get peat it might be safer to leave it.
The key thing to do right now though is to do water changes on the ten gallon. .25 is starting to get dangerous to fish. Do 50% straight away and then do at least 30% daily until the tank cycles. You have too many fish in it for a fish in cycle. If it's at all possible return the fish in the 10 gal to your LFS and do a fishless cycle. If it isn't try to get some mature media. There's a pinned topic in this board (new to the hobby) listing members willing to donate mature media. With such a small tank I'm sure somebody could spare enough media to cycle it instantly. You could also ask your LFS; even an old dirty sponge or one or two bio rings could really speed your cycle time. Failing that, you could use a bacteria supplement. They are basically bottled products that claim to add bacteria to your water. Most of them are useless because the bacteria are kept at low temperatures for extended periods with no food source and almost no oxygen. The only ones that actually work are Bactinettes (UK) Bio-spira (USA) and Aquarium Science Eco-start (Australia). Bactinettes and Bio-spira are refrigerated, Eco-start is freeze dried.
If you decide to persist with a fish-in cycle I strongly suggest that you return the oto and the gourami and cycle with the danios. Danios are tough fish that are often used for this purpose. Gouramis are well known for being extremely delicate and prone to dropsy and other internal bacterial infections. Otos prefer being kept in groups of three or four, but at this stage buying more fish is not an option; the less you have in your tank the better.
Good luck and keep us updated!
and yes I waiting over an hour before retesting the waters
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