Why is it even a less fair bet when the house takes a cut

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A "mathematically fair bet" is one in which the amount won will on average equal the amount bet, for example, when a gambler bets, say, "$100 for a 10 percent chance to win $1000 ($100 = .10 x $1000). Assuming diminishing marginal utility of dollars, explain why thi is a fair bet in terms of utility. why is it even a less fair bet when the "house" takes a cut of each dollar bet? So is gambling irrational?

Reference no: EM13212443

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