But it’s not gambling! It’s a “prediction contest.”
Ron Bernstein, a co-founder of the now-shuttered Intrade, earlier this year started a new site called Tradesports.com, a fantasy sports venue that allows users to buy and sell positions based on predictions for specific sporting events. Starting this week, the company is launching “long-term prediction” contests, which will give people a way to trade positions on events that are months in the future, such as the upcoming World Series or the Super Bowl….
Mr. Bernstein hopes Tradesports will avoid legal hassle because it is framed as a fantasy sports site. Those aren’t considered illegal acts of gambling because they are viewed as games of “skill” rather than games of chance, or luck….
In order to play on Tradesports, users choose a sporting event – known as a “contest” – and pay an entry fee in order to get fantasy money. That money is then used to buy and sell different predictions related to a specific contest. The higher the trading, the more liquid the market and ultimately “the better the data,” for anything in that contest, Mr. Bernstein says, which can range from the outcome of a game to a certain player’s point total.
Fantasy Sports Meets Wall Street: Intrade Co-Founder Resurface [WSJ MoneyBeat blog]