Why is insurance legal in some states of America when gambling is illegal?
Insurance is VERY different from Gambling. The main difference is that in insurance you smooth out the risk that already exists. For example if you drive — you ALREADY have a risk of crashing your car, so when you insure it — you are acting on an existing risk. When you gamble in a casino you CREATE a risk. if you don’t bet AT ALL the way the dice are going to come will NOT affect you. So, from the viewpoint of the State it is OK for the people to REDISTRIBUTE the risk that already exists, but they don’t want people to CREATE a new risk that is not necessary for a society.
