system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How do game show award money amounts work? Some game shows are only able to give away a few thousand dollars and others can give away millions. Who sponsors / funds shows and how are final award amounts decided?
gpt
gameshows basically buy an insurance against larger winnings. it is then the banks job to figure out the probability of such large wins, and offer a premium to the gameshow they have to pay regardless what is won.

for small amounts (a few thousand) the gameshows itself can probably handle, for larger ones you need insurances (but are great advertisements). In the middle range you would basically still need insurance, but the premiums (and financial overhead) would probably be too high.