Nah, the meaning is, the person saying it is agreeing to put up a dollar on the bet, and the one s/he is challenging only has to put up a donut. (cheaper for the one being solicited.) The person saying this is very sure of the bet, so it is a way of saying that s/he is giving favorable odds to the other one. Get it?
It means I am so sure of the bet that you will bet like 20 to 1 odds. Donuts were like 5 cents in the day.
Dollar to a donut is a bet ,The winner gets a dollar the loser buys donuts.
Its a secret code that means that b!tch needs surgery!
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