You can make payout tables similar to what they are now but instead of having a 1% house edge there's actually a small player edge. The house then covers the player edge and makes money by the stock investment.
The issues would be
1) If you assume a 7% annual return, the return on the 10 second investment would be extremely small. 7 percent / 250 working days per year / 8 market hours per day / 60 minutes per hour / 6 ten second periods per minute = 9.7e-6 percent return every 10 seconds. On a billion dollars play through in a year you'd be looking at a $97 return.
2) I don't know what commissions are like on the volume of small, short trades you'd be doing but I imagine they would be more than $0.0000001 cents per trade which means you're losing money.
The issues would be
1) If you assume a 7% annual return, the return on the 10 second investment would be extremely small. 7 percent / 250 working days per year / 8 market hours per day / 60 minutes per hour / 6 ten second periods per minute = 9.7e-6 percent return every 10 seconds. On a billion dollars play through in a year you'd be looking at a $97 return.
2) I don't know what commissions are like on the volume of small, short trades you'd be doing but I imagine they would be more than $0.0000001 cents per trade which means you're losing money.