IEM, Online Markets Bet on Sports, Politics
October 26, 2004 | Concord MonitorThink you've got a bead on who will win the World Series between the Boston Red Sox and St. Louis Cardinals? Prepared to put your money where your mouth is? Some fans would seek out their favorite bookmaker and take whatever odds are being offered. Others are taking the Wall Street approach and buying futures contracts on their teams of choice on TradeSports, an online exchange incorporated in Dublin, in part because of its favorable gambling laws. TradeSports and similar sites pattern themselves on traditional commodities exchanges. But instead of an agreement to buy or sell a commodity at a specified price in the future, contracts on TradeSports are worth $10 if the event the contract predicts occurs. In addition to sporting events, the site also trades futures contracts on political events, such as the U.S. presidential election, much like the popular Iowa Electronic Markets, run by the UNIVERSITY OF IOWA Tippie College of Business. Traders can buy contracts on the candidate they think will win, as well as on the number of electoral votes they think each candidate will receive, among other variables. The Monitor is based in Concord, NH.
Contact: Forrest Nelson