Intrade

But it’s not gambling! It’s a “prediction contest.” Read more »

Today in when prediction-markets-are-outlawed-only-outlaws-will-run-prediction-markets news, the SEC and CFTC have sued Banc de Binary, a prediction market that sounds like it’s no Intrade:

Banc de Binary solicited customers in the United States. … It broadly advertised its websites to individuals in the United States through YouTube videos, spam emails, and other internet-based advertising.

Also it’s a “Cypriot and Israeli company … based in the Republic of Cyprus and regulated by the Cyprus Securities and Exchange Commission (‘CySEC’),” so even if they are keeping your money in an escrow account at a bank it’s still not safe, ZING.

I dunno, is Banc de Binary a scam? I like the name: you say “prediction market,” they say “binary option,” someone says “online betting,” but they all mean roughly the same thing. And the website has I think median levels of eye-bleeding scrolling overpromising hyperbolic red-and-green flashing misery for an online trading site. “Spam emails” sounds bad but for the rest BdB advertises 24/7 live customer support and the SEC backs them up, saying as though it’s a bad thing “Banc de Binary also solicited potential investors in the United States by sending them emails, calling them on the telephone, and chatting with them via instant messenger over the Internet.”

Also the SEC’s (and CFTC’s) allegations about the harms of BdB are pretty meh. E.g.: Read more »

Should you have anything left in your InTrade account after letting it ride on Mitt Romney, disbelief in the Higgs boson and Zero Dark Thirty, you have nothing to fear: You’ll get all your money back after the former betting site successfully pursues “two substantial monetary claims against two distinct parties for an aggregate amount greater than $3,500,000.” Or not. Read more »