How do game shows/networks have so much money to give away as rewards?
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An additional little bit of knowledge:
When a game show has an especially large but unlikely amount available for contestants, such as $1 million, they’ll set up a prize indemnity insurance policy instead of setting the money aside. The important thing there is that the odds of someone winning that full amount are so small that the insurance company doesn’t consider it a high risk prospect.
When *Who Wants to be a Millionaire* first began airing many years ago, their insurance company threatened to back out of their deal with ABC because contestants were winning way too often. The show had to start making the questions harder so that it would be less likely for people to get the full amount, putting less pressure on the company.
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