Another Option

On another option that hasn't been explored much, perhaps we should have an option where investors can choose to be based on amount wagered instead of amount won - at say a substantial reduced amount - example would be at 40% house 'risk cut'.

This is best explained with an example e.g. for an investor owning 1% of the house invested with current house edge of 1% - 5000 BTC gambled a day that's 50 profit or 0.5 BTC a day with pure winnings (as JD is now).  With pure-wagered the penalty would be, say, 40% cut so it would be 5000 BTC a day, 50 expected profit, 1% own of the house but 40% cut so 0.6 / 100 * 50 = only  0.3 but that value is guaranteed.

To make it more elaborate, make it so there is a sliding scale of 0 to 100 on how much risk you want to take.  If you chose to go 'winnings based' (this is how JD is now) then you take the risk of win and loss as people win and lose.  If you choose to go 'wagered based' then you take the risk of not profiting as much when people win, but a lower but more stable income.  To make the math work, the excess profit from those people who are on 'wagered based' when the house is up goes into a pot, and that pot is used to pay these people out when the house loses.  I will have to think about the math a bit more to make certain it all adds up.

Keen observers will notice that 'wagered based' is very much like the model for letsdice.com - but with a lower (1%) house edge.

Will