> [Why do] gambling or insurance have negative expected value[s]?
The house sets the rules and the house has to make money. Occasionally the house sets bad rules [1] [2]. Those houses go out of business, leaving a greater fraction of the surviving shops demonstrating the rule.
The house sets the rules and the house has to make money. Occasionally the house sets bad rules [1] [2]. Those houses go out of business, leaving a greater fraction of the surviving shops demonstrating the rule.
[1] https://www.theatlantic.com/magazine/archive/2012/04/the-man...
[2] http://www.businessinsider.com/heres-the-untold-story-of-how...