As said MLM and Gambling are entirely different. Just because loss is happening we cannot equate gambling and MLM. Even with the trusted MLM schemes we feel insecure, because the outcome isn't assured. With gambling the outcome is assured, and this depends on luck. The same on MLM happens through others participation.
In most of the MLM I heard, participants on the top order make good money whereas the low bottom pave way for the top earners. When the low bottom stop working as they don't benefit good, the MLM turns to be scam.
In addition, the losses in gambling and MLM will be different, whereas in gambling, we can become addicted, which will be fatal for the people around us and us.
I used to follow a local MLM in my city where it was very popular and could attract many people to join. But the truth is, only the people at the top of the list make a lot of money, while the people at the bottom only last a short time and then disappear. Strangely, from time to time, this MLM continues to survive and can attract more people even though the products from this MLM are different.
According to the argument given by the earlier replies, a good MLM company offers products in return for the money spent on the registration. Automatically, your money is returned in terms of products just like buying an item in the store. Your money = products with the same valuation as the money spent. So basically people do not lose at all. While money in gambling, when lost won't come back.
They offer products for us to buy but the products are more or less the same as those in other stores. When compared to gambling, the products we buy from MLM we can use so the money doesn't just disappear and maybe that's a real difference from gambling with MLM.