Gambling takes many forms.
If you and I flip a coin for $100, there's no scam.
If you and I flip a coin for $100, there's no scam.
The scam in is advertising, that emphasizes how much you can potentially win, even though obviously on average the house takes those few percent each time.
[0] A term they like to use to describe themselves.
Add in the house taking a cut each time, now everyone but the house is guaranteed to lose.
Sounds like a scam to me
Gambling is about more than making money. Most gamblers do not expect to win, they do it because its entertaining. Paying $1 for the opportunity to participate in the coin flip is something many people are happy to do. Negative EV does not equal losing because you forgot to include the entertainment value.
Scams involve deception. There is no deception in a business that is upfront about taking a fee to match gamblers.