Excess Returns · Sunday, September 6, 2026
Dave Nadig describes the insidious nature of sports betting as a potential financial strategy, noting that it's often not a single large loss but a slow erosion of capital through consistent betting. He likens this to a 'grinding tax on math literacy' because it doesn't provide the clear negative feedback loop that might deter such behavior. Nadig also points out that this habit can become problematic when it's a percentage of income without assets accumulating behind it, or worse, when assets are withdrawn to fund the habit.
“I think that's fascinating. How do you think about the percent of spend of income versus the percent of spend of like assets? Because this ties back to that winning question that I was asking before.”
“Because I think the insidious nature is the addiction when it's a percent of spend of income and you don't have any assets that you're accumulating behind it. And certainly if you're taking assets off your balance sheet to placate the habit, that's where you get into all sorts of problems.”
“I feel like this is a a grinding tax on math literacy that we're not going to be able to turn around just by willing it so.”