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Casinos are a zero-sum game, in a similar vein as the insurance market. The house wins for both products (ie casinos and insurance providers). Buyers wager a
by pdq 6y ago
Casinos are a zero-sum game, in a similar vein as the insurance market.
The house wins for both products (ie casinos and insurance providers). Buyers wager a small amount of money, hoping to either win a large amount (casino), or to pay off a claim/catastrophe (insurance).
Aside, casinos provides short-term fun for consumers. A small percentage are large winners, virtually all lose money, and a small percentage become addicted and lose a ton of money.
See also options and futures markets.
- Shivetya 6y agoMany people don't realize both are regulated to limit the potential to exploit their markets. Odds are set on games of chance (slots) and with regards to insurance most have a set maximum percentage they can have profit with rest having to be refunded (this may not be true in all states but is in mine).