They can pick and choose who they want to insure and the prices they want to charge for insurance. Casinos use comparable principles by which to profit. When you gamble on roulette, you appear to be given fair odds on your bet. There are 36 numbers in the roulette wheel and if you pick the right one, you are paid off at 36 to 1. This is the casino's edge, game after game, day after day.
Professional bookmakers enjoy related mathematical advantages.
If a bookie takes bets on a prize fight and balances his book properly, half the bettors will win, and half will lose. The bookie must pay off half these bets. The bookie derives his profit by establishing the odds for the two fighters. 5 year subscription to Working Money. Free book selection.