i feel like there's some provable equivalency between gambling and pyramid schemes

freecodeio 2 hours ago | parent | next [-]

the equivalency is both go bankrupt if people win as much as the house wants you to think they win

ToValueFunfetti 2 hours ago | parent [-]

Prediction markets' business model is taking transaction fees from contracts between independent counterparties. Kalshi won't go bankrupt no matter how much you make there (though 'people' collectively will make negative [fees + taxes]).

	▲	monknomo 28 minutes ago \| parent \| next [-]
		these fees are a bog standard casino rake, a vig. this is just fancy window dressing on a bookie.
	▲	excannuk an hour ago \| parent \| prev [-]
		[dead]

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quickthrowman 3 hours ago | parent | prev | next [-]

I’m not sure what you mean.

A pyramid scheme uses new investor money to pay fake returns to those who have already invested.

A casino provides games to bet on where expected value for the player is negative. A sportsbook balances their book by modifying the odds to remain as neutral as possible and capture the spread (see ‘vig’).

There’s not a whole lot of similarity there.

	▲	MOARDONGZPLZ 2 hours ago \| parent [-]
		Probably referring to online gambling specifically. And I would frame it as the folks who promote pyramid schemes are the same as those who promote online gambling.

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red-iron-pine 2 hours ago | parent | prev | next [-]

scammin the rubes

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whimsicalism an hour ago | parent | prev [-]

not really