It's poorly communicated, but it is a real effect. You're effectively moving money from the very rare case where you win a thousand times in a row to the common

It's poorly communicated, but it is a real effect. You're effectively moving money from the very rare case where you win a thousand times in a row to the common case where you don't. So instead of having vanishingly rare cases where you have all the money in the universe, and common cases where you go bankrupt you have a median case where you make a little money, rare cases where you make a 2x return or similar, and common but a minority of cases where you lose most of your money. The key is that the game (1.5 vs 0.66) has a positive arithmetic expectation and zero geometric expectation, so you should be able to profit from it somehow. Do it with a double or nothing game and you always lose because the geometric expectation is negative infinity and arithmetic is zero.