All gambling is based on chance, but there is a significant distinction between legal and illegal gambling. The first is considered “social gambling”, such as bingo and lotteries. The second is “integrated casino gambling”, which occurs when a casino controls all aspects of a gambler’s experience, from the moment they make a bet to the moment they leave the establishment. Essentially, legal casino gambling is just a fancy way of doing bingo, and that’s probably why it has gained such popularity recently. The online gambling industry is worth around $15 billion and is growing at a rate of around 30% per year.
What Is Vig Work?
The term “vig” is short for “variable interest gambles”. Essentially, vigs are forms of P2P lending that were first popularized in the gambling world. A lot of people in the industry will tell you that vigs are simply a variant of CFDs (contracts for difference) with additional features. This is partially true, but there is more to it than that. Vigs were actually designed to make trading more convenient for active gamblers and help them avoid the pitfalls associated with other forms of online or virtual P2P trading. Essentially, vigs are a way of structuring loans for the purposes of gambling. For instance, let’s say you need $100 for the weekend. You could borrow $100 from a friend or family member, or you could open a vig with a casino. When you bet with a vig, the funds are temporarily frozen while you’re on the roll, and you’re free to access them at any time. You won’t be penalized for walking away from your computer during a trade, as long as you have the money in your account when you return. Vigs are popular among high-rolling gamblers who want to minimize the time they spend watching their funds while they’re away. The interest rates on vigs are typically higher than those of normal CFDs, but the convenience for high-volume traders more than makes up for it.
Why Do Gamblers Need Vigs?
Like any other kind of loan sharking, vigs were designed as a way of taking advantage of people who are not as skilled or experienced as the lender. This is why most vigs come with relatively high interest rates and the implicit threat of collection if the borrower ever misses a payment. Lenders will typically be much more aggressive in collection if you miss a payment, and there’s always the additional risk of the lender itself going bankrupt. All of this is completely unnecessary if the borrower uses a vig responsibly.
Vigs provide a host of benefits to active gamblers, and that’s probably why there is such an emphasis on convenience and minimize the time spent waiting for trades to happen. It’s also likely that gamblers who use vigs are generally more risk-adverse, and that makes them more willing to accept higher-than-normal interest rates. Remember: the more you trade, the more you earn, and the more you earn, the more you can afford to borrow. This is the conventional wisdom when it comes to trading in any market, but especially in the gambling world.
How Do Vigs Work?
Let’s say you want to trade the EUR/JPY currency pair. You could open a conventional CFD with a major bank or brokerage house, but the fees will probably be higher than with a vig. To get started, you’ll need to deposit money with the brokerage house and open an account. Then, you’ll have to wait for them to allocate an account manager to your account and begin the setup process. Once that is completed, you’ll be able to make money trades without ever having to leave the comfort of your PC.
Trading with a vig is often a lot more convenient. The key is to start small and simple. A good starting point is to invest $25 in a quality watch to maintain your identity as a responsible gambler. You can then use that $25 as security for a vig. The idea is to avoid using real money until you’re confident that you’re capable of handling large sums of money effectively. If you’re new to vigs, try a demo account first to get a feel for the system. You can then move to a real account as you become more experienced. This way, you’ll never have to worry about not being able to access your money while you’re away, and you’ll prevent you from putting yourself in unnecessary financial hardship. It’s also a good idea to avoid borrowing money from multiple sources. This could cause you to be exposed to loan sharks, who often prefer to loan money to large corporations and government agencies. It would be best to keep all your money in one place, and that is usually best accomplished with a vig.
What Kinds of Risks Do Vigs Impose?
The biggest risk that comes with vigs is losing money just as you’re making money. This is sometimes referred to as a “Penny Stock Syndrome”. Essentially, you’re giving your money to someone else to invest, and you’re completely reliant on them to make you money back. The second risk is the possibility that the person you’re borrowing money from goes out of business or becomes insolvent. This is why it’s usually a bad idea to use vigs if you’re not willing to accept the fact that you could lose money. It’s also one of the reasons why most vigs are not insured by any bank or government agency. Third, there is the matter of creditworthiness. While it is usually possible to get a gambling license and operate a casino, there is always the chance that the state or federal government decides to shut down your business for any reason. This is usually due to the business’ lack of financial stability, and having no access to capital is usually what leads to this kind of closure. Finally, there is the risk of the police or regulatory authorities investigating you for any reason or looking into your finances. This could lead to you being charged with tax evasion or money laundering, among other things. It is definitely advisable to avoid any kind of illegal activity, as even legitimate businesses attract the attention of the authorities.
It’s important to remember that the risks associated with vigs are mostly the same as those of any other kind of P2P lending. The main difference is that with vigs, the risks are often hidden and can be a lot more difficult to quantify. This is one of the reasons why it’s usually a good idea to consult with a professional tax accountant before you start any kind of business, especially if it is something new. It would be best to know what kinds of risks you’re taking and how you’re going to mitigate those risks. It’s also important to keep in mind that the only safe way to trade is with money that you have already won or collected from other sources. Stealing is also a very serious offense in the gambling industry, and it is usually considered a black mark on an individual’s record. This is one of the major reasons why most casinos are insured by a company like AEGIS, who provides insurance for things like this. The bottom line is: trading is risky and has the potential to bankrupt you. The key is to make sensible, calculated risks for the benefits that you see ahead of you. Just keep in mind that there is no free lunch in this world, and you’re always going to have to pay for it in some way.