InTrade, Prediction Market to the Stars, Gets Banned From the U.S.

InTrade, the Dublin-based prediction market (i.e., betting platform) that we’ve written about regularly over the years (including a Q&A with its founder, John Delaney, who has since died), is under legal scrutiny from U.S. regulators and will therefore stop taking bets from U.S. customers. Here is InTrade’s statement, and here is the CFTC’s press release on the shutdown. What will U.S. regulators do next, outlaw online poker?

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  1. Herring says:

    So what alternatives are there? On Slashdot someone posted http://betsofbitco.in but I don’t have any experience with it…is anyone using that?

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  2. Ben Mingo says:

    interesting website…
    Still it makes me queasy to think that one could bet on event that one believes will happen that would have detrimental affects on society and make money off it or say now root for it to happen.

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    • Marc says:

      “Still it makes me queasy to think that one could bet on event that one believes will happen that would have detrimental affects on society and make money off it”

      This is more or less the purpose of the entire insurance industry. Buying life insurance is simply making a bet that you will die.

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  3. Mike says:

    After sitting on its passive hands all through the 2007-2008 CDO/CDS debacle as its well-connected FRIENDS in the banking industry brought down the US (and world) economy, now the CFTC has gone from merely being a sick worthless decoration to being actively destructive. It is on a jihad to stomp out this modern invention, the prediction market – something that had been supplying the media, the public and even investors in the stock market with likelihoods of events that were important to them. They are doing this despite the fact that there is zero evidence that there has ever been ANY negative societal fallout from Intrade in its many years on the scene. The justifications given in their power-grab lawsuit are laughable. This is over several hundred dollars in binary options in gold or oil that may have been errantly bought by Americans during a time when Intrade’s safeguards had failed.

    Question: When do Congressional hearings begin for the dismantling of this pointless and societally destructive rogue regulatory agency?

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  4. Josh Blackman says:

    I co-authored an Op-Ed in today’s Houston Chronicle, arguing that the CFTC’s overbroad suit may run into some First Amendment problems: http://www.chron.com/news/politics/opinion/outlook/article/Cutting-access-to-InTrade-violates-Americans-4100729.php

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