One of the business principles that a lot of successful entrepreneurs use is investing in anything with low risk and a possibly high reward. So this means that there are limited downside and unlimited upside. Gambling can rarely be considered a business situation from the point of view of a gambler, but if you look at it from the perspective of a low-risk, high-reward investment, there seem to be some similarities. Given below are three of these situations.
Popular lottery games, like Mega Millions and the Powerball, fit the low-risk high-reward equation to perfection. The player invests two or three dollars standing a chance to win millions; often over one hundred million dollars. This is one of the biggest reasons why the lottery is so popular. However, the most significant difference between business principles and the lottery is that low-risk, high-reward business decisions stand a much better chance to succeed than the latter. Also, most business decisions risk more than just a few dollars, so there is a difference on either side. If you can afford to buy lottery tickets and love to dream about what you will do if you win, then you should definitely buy them. However, you should also understand the reality of winning. Although two or three dollars is a low-risk gamble, the truth is that the chance of winning a reward is almost zero. Gamblers often argue that playing the lottery is actually a high-risk low-reward situation as people will be risking something of value with virtually no chance of winning.
Progressive slot machines and the lottery have a lot in common. The player is essentially risking a few dollars on a spin in the hopes of winning a big progressive jackpot. The problem is basically the same as the lottery; the player has little to no chance of actually hitting the jackpot. A few lucky players do hit big progressive jackpots each year, but most of the players do not hit the jackpot in their entire life. Another problem is that most players don’t just stop at one or two spins. Unlike in the case of the lottery where the player might buy three or four lottery tickets per week, playing for an hour on slots might consist of four hundred to six hundred spins. On top of risking more capital playing slots, the maximum payout for progressive jackpots is generally considerably lower than the top payouts for the lottery.
Keno is one of the most challenging games to play at a casino. The house edge is generally 25% or more, which means that for every hundred dollars the player risks playing keno, they lose a quarter of it. Surprisingly this isn’t even the worst thing about keno. The top prize for the game is generally even lower than the lottery and progressive slot machines, often as low as ten thousand dollars. However, a lot of people still play keno because it can be played by betting just 1 dollar.