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Gambling Vs. Investing


GAMBLING

Gambling is associated with casinos and is epitomised on the roulette table. In roulette members of the public essentially bet against each other with the casino taking a small percentage for the cost of setting up and running the table. There are 37 numbers on a roulette table – three rows of twelve numbers plus the zero. If you place a R10 bet on every number you will have to outlay R370 – and then you can be certain to win because one of those 37 numbers must come up. Except that when you win you will only be paid out R350, plus the R10 that you bet on the winning number. In other words you will get back R360 for your R370 bet – the other R10 (approximately 2,7%) is kept by the casino to meet its costs and make a profit. That is gambling. And the simple fact of the matter is that the longer you play roulette, the more you will eventually lose – but that does not mean that you will lose on every spin. It just means that the odds are stacked against you so in the end you will always lose. Read More