Question 1155649
The expected value is -5(99/100) or -4.95 (loss) +(1/100)($295)=$2.95, he wins $300-$5 paid to play.
The result is -$2. It is not a fair game. 

To make it fair, one would have to win $500 and pay for the ticket or $495 altogether.  He has to get his $5 back if he plays enough.  

Another way to look at it is if he loses 99 times he is out $495.  On the last, he has to get $495 and the price of the ticket back to break even.