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To simplify, why bet when the winnings are tiny. There's other things you could do with that money.
by admax88q 6y ago
To simplify, why bet when the winnings are tiny. There's other things you could do with that money.
- nstj 6y agoSure, but that’s a cost of capital discussion not a “fees are higher for bets with higher likelihood of winning” one.
- Retric 6y agoIt’s related. Your actual gains = (Fee * winnings ) - opportunity cost. The effective withdrawal fee is 1 - (actual gains / ( winnings - opportunity cost)). So if the actual fee is 10% your winnings are 2$ and your opportunity cost is 1$ them the effective fee is 20%. In other words a 10% withdrawal fee dropped your actual gains from 1$ to 80 cents. However if your winnings where 1,000$ then your effective withdrawal fee is 10.01% dropping your actual gains from 999$ to 899$. In other words fees are more impactful on high probability bets than low probability bets.