RE: Riddle Me This! #2: SBD Earnings go to winner on payout.
I'm going to give you and @artopium the vote. @artopium for getting it the closest to the specifics, and you for being the first to guess he was betting on a losing horse.
This is pretty much it. It's called lay betting, and he doubled his bet back on a losing horse by putting in a stake of 10 on the odds of his choice. He's not betting against another person, he's just saying what the odds are that the horse loses. You can put in a guess at the odds (anywhere from 1 - 10) and put a stake on the odds that this happens.
If he bets $50, then he's got to guess on odds of 10 with a stake of 10. If his horse loses, he gets $100 back.
If he bets $20, then he's got to guess on odds of 4 with a stake of 10. If his horse loses, he wins $40.
If he bets $30, then he's got to guess on odds of 6 with a stake of 10. If his horse loses, he wins $60. Doubles his money.
Hope that makes sense?
Facts about gambling: the house always wins! :)
I have never heard about this before, so it's great to have learn something new. Thank you!