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They can serve as a form of insurance--I can hedge against currency changes by buying options, say. Someone can lock in a price of a commodity like oil. That's the other side of the same coin.
This was a great article, though. One area which isn't touched is how much of these gambling strategies are controlled by algorithms through computer programs. As a programmer, I can tell you that every programmer has a "D'oh" moment, where you smack yourself on the forehead and go "why would you do that?" to a user.
When you have programs controlling trillions of dollars, those D'oh moments can be pretty bad. Witness the LTCM fiasco.
