As I understand it these are basically an insurance policy. The promoter takes out a policy detailing the odds of a payout being required, and pay a premium based on the insurer’s risk assessment.
And of course the insurer wants to minimise the odds of paying out, and the promoter wants to minimise their premium - so the top prize is usually, as above, near-unwinnable.
As I understand it these are basically an insurance policy. The promoter takes out a policy detailing the odds of a payout being required, and pay a premium based on the insurer’s risk assessment.
And of course the insurer wants to minimise the odds of paying out, and the promoter wants to minimise their premium - so the top prize is usually, as above, near-unwinnable.