lets see what I am still missing here. I don't know any land based or online casino that would take the risk to lose 90%+ of his Bank Roll with one bet and actually risking to close down their casino. I am also not aware that they use KC. why would MP allow this kind of risk?
Well for instance, when I ran MP I personally put 100 BTC in the bankroll. Had the casino lost 90% of it's bankroll, I would've re-evaluated the risk and put another 100 BTC in (and repeat). Alternatively, I could've say put 500 BTC in the bankroll and operated at a 0.2x kelly for instance.
(For me the former is much better, especially in in the case of a hack or exploit or what not. And I wanted to hold as little of other peoples money as possible, so by making it stupidly risky, that kind of helped. Most of the big investors I talked to were comfortable with the idea of risking 99% of the money they put in)
And while I'm not an investor in the current MP, if I did, I would much prefer it operating at a 1x kelly then something conservative. I think my biggest risk (as an investor) would be a hack, exploit or inside job. So minimizing the amount of money I physically deposit is ideal.