The story aims satire to hold up to ridicule individuals. Jim Smiley used to bet money on almost any type of competition. Smiley used to make fun of people after he won them, but at the end of the story after a stranger won Smiley on a competition the joke was on him.
The author used words that were common in the 50’s, which gives an ideas of what time the story took time. The dialect of the story supports set the plot on the correct time period. For example, the dialect that Simon wheeler is speaking helps understand the time period in which the story took off.
In my personal opinion I think the story is realistic, for the reason that many people bet and always have the luck to win the majority