Kelly criterion was originally invented by Daniel Bernoulli (using logarithmic utility) as a resolution to the St. Petersburg Paradox, IIRC:

https://en.wikipedia.org/wiki/St._Petersburg_paradox

Not specifically a solution to the St. Petersburg Paradox because, well, it's not a solution to the most general formulation of it (and Bernoulli admits as much in his paper, IIRC).

At least the way I read Bernoulli's paper, it was more of a general musing on how to reduce risk and make insurance decisions.

> widely used

A nice idea but not really.

I use it every time I’m in Vegas.