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Addiction Markets

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383 points toomuchtodo | 1 comments | 31 Oct 25 17:42 UTC | HN request time: 0.2s | source
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toomuchtodo ◴[31 Oct 25 17:52 UTC] No.45774751[source]▶
Related:

Coffeezilla: Exposing the Gambling Epidemic - https://news.ycombinator.com/item?id=45773049 - October 2025

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Hasz ◴[31 Oct 25 19:33 UTC] No.45775815[source]▶
Great video. The convergence between traditional stock market finance and casino gambling is going to seriously scar a generation.
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skippyboxedhero ◴[31 Oct 25 20:39 UTC] No.45776447[source]▶
Who do you think was buying options 30 years ago? Institutional demand, particularly for non-OTC options, was zero. Countries which have legalized gambling tend not to have large options markets.

There is no convergence. They have always been the same thing. The difference is that you can provide a venue where harm is reduced or one where harm is maximised.

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hollerith ◴[31 Oct 25 20:45 UTC] No.45776493[source]▶
Options markets help farmers and miners decide how much to invest in future production. Ditto the consumer of a commodity faced with an investment decision where the success of the investment depends on continued access to the commodity.
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malfist ◴[31 Oct 25 22:25 UTC] No.45777356[source]▶
Are you thinking of the futures market? That's different than options
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steveBK123 ◴[01 Nov 25 02:28 UTC] No.45778780[source]▶
Options can be thought of as a form of insurance, so they have a useful purpose.

In the simplest case you might hold a stock and a put to limit your downside for a set period of time.

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nimos ◴[01 Nov 25 03:43 UTC] No.45779088[source]▶
The opposite is also true - you can use options to increase risk. I don't think insurance is a particularly good analogy in general.
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1. steveBK123 ◴[01 Nov 25 13:38 UTC] No.45781546[source]▶
I mean generally speaking derivatives can be used as insurance or for speculation, and a wide gradient of gray in between.

By contrast, sports gambling is well, gambling. And importantly as we've seen in a lot of reports - the big online sports books essentially freeze out anyone who is good so that they are collecting revenue primarily from the.. innumerate.

Of course you also have some markets like India without legal gambling and oversized derivatives markets that are unfortunately serving as a replacement.

I'd also point out that you don't see the sort of degenerate nonstop advertising for options punting that you see for sports gambling. "Thanks for tuning into the ESPN FanDuel pregame show at the Caesars Superdome / and don't forget to stop by the DraftKings Sportsbook lounge." Followed by a barrage of other gambling ads in between plays.