Some people do actually have end of the world bets out but you have to structure it differently. What you do is the person who thinks the world will end is paid cash right now, and then in N years when the world hasn't ended they have to pay back some multiple of the amount the original amount.
I still don't get how this is supposed to work. So let's say I give you a million dollars right now, with the expectation that I get $10M back in 10 years when the world hasn't ended. You obviously wanted the money up front because you're going to live it up while the world's still spinning. So how am I getting my payout after you've spent it all on hookers and blow?
Yeah I wouldn't make a deal like this with someone who is operating in bad faith... The cases I've seen of this are between public intellectuals with relatively modest amounts of money.
Well that's what I don't get, how is spending the money bad faith? Aren't they getting the money ahead of time so they can spend it before the world ends? If they have to keep the world-still-here money tied up in escrow I don't see why they would take the deal.