Not quite. The two cases are "team loses, everyone goes home and doesn't buy loads of drinks" in which case you get the payout from having bet (sorry, purchased

Not quite. The two cases are "team loses, everyone goes home and doesn't buy loads of drinks" in which case you get the payout from having bet (sorry, purchased insurance) on that team losing, offsetting your loss from not getting the money from drinks. Alternatively, the team wins, you lose your bet (insurance pay) but everyone gets loads of drinks and you make your money that way.