Not to name names or anything, but it seems stupid to call such an activity an insult.
I’d see it as an insult - I mean, if “you are banworthy” isn’t an insult, what is it? A dry observation? Pull the other one…
It’s akin to taunting, which is jerkish, at least to me.
No, it wouldn’t be allowed.
I am not sure what your definition of insult might be, but I do not see how betting on an event that is based on the presumption that a poster is a jerk, troll, or spammer, (the typical reasons for banning), is anything other than an insult.
What about the wagering of internets, Schrute Bucks, or the like IN the pit?
Not only insulting, it also constitutes junior modding. We wouldn’t allow it.
I’d sure warn a poster for it.
People discuss that stuff in the Pit now and then. It’s not against the rules.
What they all said. A lot of stuff goes on in the Pit that’s not tolerated outside it.
So what about threads that have a post similar to this:
“This isn’t going to end well in 3 … 2 … 1 …”
Just curious.
So, one could start a Pit thread about it?
Could we have something like the Celebrity Death Pool? The 2014 Poster Banning Pool?
Yeah, that’s jerky too.
If you see behavior that you think is inappropriate for the forum/against the rules you should report it. And avoid adding editorials or piling on. That’s the classy way to go, and the best.
Let the moderators sort it out. It’s even possible you might be mistaken. But even if you’re right and someone is being out of line, you being out of line alongside them is not the way to go. Let Johnny jump off that cliff without you. 
I am not a Pit Mod but I think that’s too much, even for The Pit.
Sigh …
It the time that I joined (all those years ago) the admonition was against such phrases as “pulls up a deck chair” when someone was about to flame out in GD. Taking bets on the situation is even more jerkish. (Even if we are all quietly speculating.)
So do I have to give back the money I’ve won?
If you want to quibble about definitions I would say its not an insult. You are not calling anyone a name. But it is taunting and basic jerk behavior. So still against the rules and shouldn’t be allowed. Doesn’t really matter if you label it an insult or not. IMHO.