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randomness...but how does this differ from sports gambling, exactly?
Red Sox Reward Futures Traders Who Favored Them Over Yankees
"The Boston Red Sox, who became the first team in Major League Baseball history to win a playoff series after trailing three games to none, rewarded the futures traders who made them favorites against the New York Yankees.
"The payoff was even greater for speculators who wagered on the Red Sox when their futures contracts were selling for pennies on the dollar.
"Traders were paying more for Boston contracts than for New York futures before the American League Championship Series, even though the Red Sox haven't won baseball's title since 1918, and the Yankees have won four of the past eight.
"``It's phenomenal how efficient the sports markets are,'' said Mike Knesevitch, a spokesman for TradeSports.com, an online exchange where futures contracts were traded on the series. ``I'm always amazed.''
"Traders on the Dublin, Ireland-based exchange who were betting on a Red Sox victory were able to redeem contracts that were almost worthless four days earlier. Traders were able to increase their investments 40-fold if they bought Boston contracts at their low and held them until today."
http://quote.bloomberg.com/apps/news?pid=10000103&sid=aMJUmSbh.O8o&refer=us
Red Sox Reward Futures Traders Who Favored Them Over Yankees
"The Boston Red Sox, who became the first team in Major League Baseball history to win a playoff series after trailing three games to none, rewarded the futures traders who made them favorites against the New York Yankees.
"The payoff was even greater for speculators who wagered on the Red Sox when their futures contracts were selling for pennies on the dollar.
"Traders were paying more for Boston contracts than for New York futures before the American League Championship Series, even though the Red Sox haven't won baseball's title since 1918, and the Yankees have won four of the past eight.
"``It's phenomenal how efficient the sports markets are,'' said Mike Knesevitch, a spokesman for TradeSports.com, an online exchange where futures contracts were traded on the series. ``I'm always amazed.''
"Traders on the Dublin, Ireland-based exchange who were betting on a Red Sox victory were able to redeem contracts that were almost worthless four days earlier. Traders were able to increase their investments 40-fold if they bought Boston contracts at their low and held them until today."
http://quote.bloomberg.com/apps/news?pid=10000103&sid=aMJUmSbh.O8o&refer=us
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(no subject)
Date: 2004-10-21 12:19 pm (UTC)I will not argue with you about the benefits of transparency. As I said, I'm all for efficient markets, and transparency is important to efficient markets. However, the solution to lack of transparency is to make the market more transparent, not to ban the market.
And when you look at the underlying business, it's functionally the same. TradeSports.com and Ladbrokes (one of the big bookmaking houses in the UK) have substantially the same business model. Yet, because one has a futures market focus, and the other has an old-style bookie focus, we as a society treat them very differently.
there's no worrying about unfair lines, or people going under and not paying, or people breaking your legs: it's a clearly defined transaction that depends on two people entering into an equal relationship.
Many of these problems are the result of gambling being illegal. Unfair lines could be greatly reduced with competition from other providers; people going under and not paying could be enforced through existing small claims and bankruptcy law, and the breaking your legs problem can be dealt with by making gambling debts collectable through the usual collection agency channels.
I will note additionally that Ladbrokes conducts its business with the clear definition of a modern bookmaking house.