alt Hacker NewsInsurance against loss due to ... paying for insurance? The language of the thing is compelling at first glance, but it doesn't actually parse. Sharing your gambling wins with patrons to attract more patrons is not insurance.
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dcrazy • yesterday at 3:40 PM
I’m not a lawyer, so I can’t give you an authoritative explanation of the difference between insurance and gambling. But I would guess one factor is that the insurance payout is somehow tied to the actual loss.
Kalshi is clearly not an insurer. But the commercial role they filled in this very specific situation is the same as a prize indemnity policy.
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.