Bet on black

11 March 2013 By Robert Cyran Follow @rob_cyran

The site, which took bets on everything from elections to oil, closed abruptly and mysteriously. Intrade’s predictive record was good, but didn’t foresee the rising controversy over under-regulated speculation. It’s a cautionary tale for the likes of SecondMarket and StarStreet.

This content is for Subscribers only

Context News

Intrade, the predictions site that allowed people to place bets on events such as the U.S. presidential election, on March 10 stopped all trading after discovering “circumstances … which may include financial irregularities.” Open contracts were settled at market prices. Accounts will be frozen until further notice, according to a notice on the company’s website.
The U.S. Commodity Futures Trading Commission filed a lawsuit last November accusing Intrade of violating its off-exchange options trading ban by letting U.S.-based customers wager on the price of commodities such as oil, and filing false claims with the agency. The company closed its site to U.S. bettors shortly after.

Email a friend

Please complete the form below.

Required fields *