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Gambling is a kind of game that bets any kind of game with a consciousness of risk and hope of gain. Gambling outcomes may be determined by chance alone, as in the purely random activity such as a ball on a roulette wheel or a tossed pair of dice, or physical skill, prowess or training, or a combination of strategy and chance. If you play a dollar you may lose 5.2 cents but people still do it. Gambling creates addiction and stopping it is very hard because it changed the brain.
The Magic Economics of Gambling
According to conventional economy rules casinos shouldn’t be able to exist. That’s because humans are rational conventional economic rules assume. Conventional economic rules would predict that if someone offered you a deal where you gave them $100 and they gave you $94.80 back you wouldn’t take that deal bur.
gambling institutions offer to earn them worldwide close to half a trillion dollars per year. But consider this. Insurance companies are basically gambling companies but the roles are flipped the insurance companies are the gambler and you’re the casino. If you pay a car insurance company for example $1500 a year to ensure your vehicle they’re gambling that you’re not going to cause more than $1500 is coverable damage in any one year. Of course, it takes money to run the insurance company so they need a margin.
