The US Congress has approved the internet gambling ban bill. (Reuters, Wash Post). [Thanks to NY-based trader Steve Roman for the link.]
TEN CEO John Delaney has been feeding the gullible media with the concept that, because TradeSports / InTrade is a prediction exchange (not a bookmaker, or a casino), he keeps sleeping like a log, at nights, regarding the recent prosecutions against internet gambling firms’- executives.
Addendum: Steve Roman notes that the USLAW.IGAMING.JAN07 contract has skyrocketed…- maybe wrongly…-
Dublin, July 14, 2006: New US Law passed and signed by the US President
The contract(s) will be expired at 100 if (including but not limited to):
The 109th US Congress passes a bill and the US President signs a new law that amends the federal criminal code to prohibit persons engaged in the business of betting or wagering from knowingly accepting credit, electronic fund transfers, checks, drafts, or similar instruments, or the proceeds of any other financial transaction in connection with unlawful internet gambling. The law must be signed on or before 11:59:59pm ET on the date specified in the contract.
The contract(s) will be expired at 0 if (including but not limited to):
There is no such bill passed by Congress or the bill is not signed into law by the US President on/before 11:59:59pm ET on the date specified in the contract.
Due to the nature of this contract please also see Contract Rule 1.9 (Unforeseen Circumstances).
The Exchange reserves the right to invoke Contract Rule 1.8 (Time Protection) if deemed appropriate.
Any changes to the result after the contract has been expired will not be taken into account. Exchange Rule 1.4
You are obligated to contact the exchange by email to email@example.com if you have any questions regarding this contract before you enter an order.
Addendum: This is from a trader (scoresman923) on the TradeSports forum:
Please discuss the passing of this new bill and let your bettors know all implications of the bill. We have invested a lot of time and money in your site and have been loyal customers. I fear for my funds invested and if you do not discuss this issue I will be forced to withdraw all funds within the next couple of months.
Addendum: Clarification October 5th 2006:
The above contract will expire at 100 if/when the President signs the current “-Safe Port Act”-, which includes the section Unlawful Internet Gambling, which was passed by Congress on September 29th, 2006. If he does not sign this bill or similar by December 31st, 2006, the contract will expire at Zero.