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BetFair-TradeFair is legal and has ethics, while TradeSports-InTrade is not and has none.

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Via Steve Roman who provides the recap and another excerpt, The New York Times:

[...] At the center of the investigation is Betfair, one of the largest so-called online sports exchanges, which matches bettors directly against each other, rather than against the house, as traditional bookmakers do. Betfair set off the current crisis when it voided $7 million in bets after Mr. Davydenko withdrew from a match against 74th-ranked Martin Vassallo Arguello of Argentina at the Prokom Open in August in Sopot, Poland. Mr. Davydenko retired because of an injury with Mr. Vassallo Arguello ahead, 2-6, 6-3, 2-1. During the match, Betfair notified the ATP that its security team had recognized irregular betting patterns.

[...] At Betfair, which is based in London, tennis ranks third behind horse racing and soccer among its one million customers, who together place five million bets each day. More than $60 million was handled for the Wimbledon’s men’s final, won by Roger Federer over Rafael Nadal.

Robin Marks, a Betfair spokesman, said the decision to void the bets from the match in Poland — the first time the company had ever done so — was an easy one. A large amount of money was coming in for the obscure match, Mr. Marks said, and the betting patterns made little sense: Mr. Davydenko went from an odds-on favorite to a significant underdog before the match started, and his odds drifted higher and more money came in for Mr. Vassallo Arguello even after Mr. Davydenko won the first set.

By the next morning, Betfair’s 40-person security team had unearthed additional information by combing its records and tracing unique Internet addresses. Betfair passed on that information in accordance with the ATP’s anti-corruption program, which was put in place in 2003 in the wake of a match-fixing scandal in cricket. Mr. Marks said Betfair has similar agreements with 28 other sports leagues on which it takes bets. He declined to specify what Betfair had found. “Why would the betting patterns change before a ball was even hit?” Mr. Marks said. “Why would more money come in against him when he had already won the first set? You come to the assumption that somebody knew something.” [...]

Previously: BetFair has an anti-fraud team whereas InTrade-TradeSports has none.

Market Suspended – Martin Arguello v Nikolay Davydenko

Betfair Customer Services 02 Aug 18:45
Betfair has suspended settlement of the betting markets on this afternoon’s second round match of the ATP Orange Prokom Open in Poland between Martin Arguello and Nikolay Davydenko, pending investigation and consultation with relevant regulatory authorities. Betfair has had a Memorandum of Understanding with the ATP since 2003, and will use it to exchange information should it become necessary.

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All bets are void in Davydenko v Arguello match

Betfair Customer Services 03 Aug 11:46
Following consultation with the men’s professional tennis tour, the ATP, Betfair has decided to void all bets [*] placed on Thursday’s 2nd round match between Nikolay Davydenko and Martin Vassallo Arguello at the Orange Prokom Open. Betfair suspended settlement of bets at the conclusion of the match yesterday because of concerns over irregular betting patterns. The company has taken this action in the interests of maintaining integrity and fairness in all our markets.

[*] First time in the history of BetFair.

Times – Telegraph

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BetFair (which is a regulated betting exchange) has signed agreements with over 25 sports bodies and has an internal team looking for foul betting. TradeSports-InTrade (which is an unregulated betting exchange) has none. Thus, it is quite possible that some sports prediction markets at TradeSports are rigged. You will notice that nobody in America asks this tough question. (All US-based prediction market conferences being sponsored by InTrade-TradeSports, and all the US-based researchers being depend on InTrade-TradeSports data, no wonder.)

Midas Oracle and CFM are the only publications that tell you the whole truth about the prediction markets:

• the good side,
• and the dark side.

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ADDENDUM: The BetFair people do not send anonymous insults sent from fake e-mail accounts. They are professional and ethical people.

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Previous: BETFAIR DOES FIGHT VIGOROUSLY ANY ATTEMPTS AT MONEY LAUDERING. + BetFair on Responsible Gambling

NEXT: BetFair has an anti-fraud team whereas InTrade-TradeSports has none.