• simple@lemm.ee
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    1 year ago

    Because if you gamble in small increments the odds are in your favor. If you gamble your entire wealth then you’ll likely lose.

    Lets say you’re gambling in $5 increments. The odds are 50/50, if you lose then you’ll have $2.5, and if you win you’ll have $9. That’s a 50% chance to lose $2.5 and a 50% chance to gain $4, the actual risk is if you lose too many times in a row that you don’t have enough money to gamble with. Otherwise, you’ll slowly gain money.

    • xmunk@sh.itjust.works
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      1 year ago

      Ah, I was assuming that the premise was all-in on each gamble. It’s true that it will work with small increment gambles.