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Tip via Jason Ruspini
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Previously: on TradeSports death – on InTrade’-s viability
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Is this the reason John Delaney quickly shut TradeSports down, yesterday?
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Tag Archives: TradeSports
The InTrade traders are wondering what the future of InTrade is -now that TradeSports has bellied up in style.
Here are the screen shots of their posts —-before they get removed.
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Previously: on TradeSports death – on InTrade’-s viability
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Why did John Delaney shut down TradeSports?
He has offered 2 different explanations.
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EXPLANATION #1: Let’-s blame the Unlawful Internet Gambling Enforcement Act of 2006.
We underestimated the difficulties that current and new customers would experience in funding accounts and partly as a result of this we have reluctantly decided to close TradeSports. While we are not hopeful that funding issues may dissipate soon, should they TradeSports will be back and it is therefore an imperative for us to effect and orderly and goodwill preserving closure for you all.
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EXPLANATION #2: In spite of the InTrade-TradeSports splitting (sold to the gullible people since January 1st, 2007), TradeSports is the gambling stigma attached to InTrade. It is good business to get rid of that gambling stigma.
The closure of TradeSports is a good for Intrade as for too long the legacy association of Intrade to TradeSports has been a negative for Intrade for reasons that have been referred to above.
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Chris F. Masse
The InTrade predicton markets on the viability of InTrade wont reveal *ANYTHING* about the future of InTrade.
It is impossible for any InTrade trader to know whether the financial accounting of InTrade is sound or not. Any commercial company surrounds itself with secrecy. Let alone an Irish company that illegally (from the DOJ’-s standpoint) exports its services to Americans.
UPDATE: See the comment #1 there.
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It was impossible for the InTrade traders to divine whether Yahoo! CEO Jerry Yang would step down.
(In passing, note that InTrade has expired this contract hours after the breaking news hit the wires.)
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It was impossible for the InTrade traders to divine whether Unlawful Internet Gambling Enforcement Act of 2006 would be voted and enacted.
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The InTrade predicton markets on the viability of InTrade won’-t reveal ANYTHING about the future of InTrade. It will just aggregate InTrade’-s PR output.
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As for the “-business development initiatives”- planned by the InTrade executives, I wish them the best of luck. However, I remain skeptical, since I don’-t see what can replace the 2008 US elections in terms of attractiveness —-now that the SuperBowl has been sacrificed.
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After the demise of TradeSports, questions (re-)surface about the viability of InTrade.
My post about the sudden closure of TradeSports was the #2 most downloaded webpages, yesterday —-even though that post was published late yesterday. And this morning, I am receiving tons of e-mails from the InTrade and TradeSports traders (they are often the same people).
My reasoning:
- InTrade is the twin site of TradeSports.
- The closure of TradeSports was sudden.
- The TradeSports owners have closed shop less than 2 months before the SuperBowl —-the biggest $$$ drawer.
- Now that the 2008 US presidential elections are over, the InTrade heyday is over. No more liquidity. No more media coverage. See you in 2010 and 2012.
- If TradeSports couldn’-t survive the Unlawful Internet Gambling Enforcement Act of 2006, I don’-t see how a lean InTrade could do.
- InTrade CEO John Delaney is not a truthful person. It is unlikely that any statement from him about the viability of InTrade should be taken seriously.
- Midas Oracle used to received many daily server requests from the InTrade-TradeSports team in Ireland. The recent web stats show a sudden drop. This might signal that some key employees are in vacation —-or have been laid off.
- UPDATE: They seem now unable to expire a contract in the evening, Irish time.
TAKEAWAY:
- The InTrade traders should prepare themselves for the worse —-the sudden closure of InTrade.
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Chris F. Masse
TradeSports ceases its operations.
TradeSports will terminate itself on November 28, 2008.
A very sad day (which I am not glad to report that I predicted would happen). TradeSports is probably the latest victim of both the Unlawful Internet Gambling Enforcement Act of 2006 and the Louisiana prosecutors. It is also the victim of a lack of support from the prediction market luminaries. As for the pertinence of the InTrade-TradeSports splitting that was started in 2007, I leave this issue to the business historians.
InTrade (which does not float event derivatives on sports) is caught in the same regulatory net, but CEO John Delaney hopes that the CFTC could soon legalize event derivative exchanges —-except those on sports. That is far from certain, though. And InTrade’-s heyday is now over. See you in 2012, for the next presidential election.
The Sporting Exchange (which operates BetFair) is making a very different bet: the United States of America will one day legalize the betting exchanges and the trading on sports. That is a reasonable, long-term bet. But not all the Democratic legislators favor Internet gambling and betting —-far from it. We will see.
The future is spelled “-BetFair”-, but many of my readers don’-t like the way they display odds —-Americans prefer probabilities.
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InTrade has surpassed BetFair and TradeSports (and the Iowa Electronic Markets, too).
InTrade’-s PageRank is now 7 / 10 —-while all the other major prediction market firms are at 6 / 10.
- It shows that the prediction market approach is paying off. Do provide journalist-friendly objective probabilistic predictions (expressed in percentages –-not those fucking decimal odds), and the media will link to you, thanks to all the free-market economists who love your model and act as unpaid publicists for you. Make sure your website can resist under heavy traffic loads on Election Day, and during the occasional days where important news break. Then, milk out all this free publicity. Run registration ads allover your exchange website to attract new traders. Make money. Invest in IT —-but don’-t let the IT maniacs complicate your prediction exchange too much (as BetFair did).
- Long-term, the InTrade model (based on the prediction market approach) should be more profitable, in theory. Because of legal impediment, InTrade is not as profitable as it should be, alas.
2008 US Presidential and Congressional Elections Prediction: The Sarah Palin effect has partially evaporated, but its remains point to a close race, come Tuesday, November 4, 2008.
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#1. Explainer On Prediction Markets
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Prediction markets produce dynamic, objective probabilistic predictions on the outcomes of future events by aggregating disparate pieces of information that traders bring when they agree on prices. Prediction markets are meta forecasting tools that feed on the advanced indicators (i.e., the primary sources of information). Garbage in, garbage out…- Intelligence in, intelligence out…-
A prediction market is a market for a contract that yields payments based on the outcome of a partially uncertain future event, such as an election. A contract pays $100 only if candidate X wins the election, and $0 otherwise. When the market price of an X contract is $60, the prediction market believes that candidate X has a 60% chance of winning the election. The price of this event derivative can be interpreted as the objective probability of the future outcome (i.e., its most statistically accurate forecast). A 60% probability means that, in a series of events each with a 60% probability, then 6 times out of 10, the favored outcome will occur- and 4 times out of 10, the unfavored outcome will occur.
Each prediction exchange organizes its own set of real-money and/or play-money markets, using either a CDA or a MSR mechanism.
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More Info:
– The Best Resources On Prediction Markets = The Best External Web Links + The Best Midas Oracle Posts
– Prediction Market Science
– The Midas Oracle Explainers On Prediction Markets
– All The Midas Oracle Explainers On Prediction Markets
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#2. Objective Probabilistic Predictions = Charts Of Prediction Markets
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Put your mouse on your selected chart, right-click, and open the link in another browser tab to get directed to the prediction market page of your favorite exchange.
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2008 US Elections
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InTrade
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2008 US Electoral College
2008 Electoral Map Prediction = InTrade – Electoral College Prediction Markets = Probabilistic predictions for the 2008 US presidential elections based on market data from InTrade = electoralmarkets.com
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– This is a dynamic chart, which is up to date. Click on the image, and open the website in another browser tab to get the bigger version.
2008 US Elections Prediction: John McCain is now the favorite at InTrade, while all the other prediction exchanges still have Barack Obama ahead. Is InTrade quicker to incorporate the latest polls because of the bigger liquidity of its prediction markets?
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#1. Explainer On Prediction Markets
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Prediction markets produce dynamic, objective probabilistic predictions on the outcomes of future events by aggregating disparate pieces of information that traders bring when they agree on prices. Prediction markets are meta forecasting tools that feed on the advanced indicators (i.e., the primary sources of information). Garbage in, garbage out…- Intelligence in, intelligence out…-
A prediction market is a market for a contract that yields payments based on the outcome of a partially uncertain future event, such as an election. A contract pays $100 only if candidate X wins the election, and $0 otherwise. When the market price of an X contract is $60, the prediction market believes that candidate X has a 60% chance of winning the election. The price of this event derivative can be interpreted as the objective probability of the future outcome (i.e., its most statistically accurate forecast). A 60% probability means that, in a series of events each with a 60% probability, then 6 times out of 10, the favored outcome will occur- and 4 times out of 10, the unfavored outcome will occur.
Each prediction exchange organizes its own set of real-money and/or play-money markets, using either a CDA or a MSR mechanism.
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More Info:
– The Best Resources On Prediction Markets = The Best External Web Links + The Best Midas Oracle Posts
– Prediction Market Science
– The Midas Oracle Explainers On Prediction Markets
– All The Midas Oracle Explainers On Prediction Markets
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#2. Probabilistic Predictions = Charts Of Prediction Markets
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Put your mouse on your selected chart, right-click, and open the link in another browser tab to get directed to the prediction market page of your favorite exchange.
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2008 US Elections
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InTrade
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2008 US Electoral College
2008 Electoral Map Prediction = InTrade – Electoral College Prediction Markets = Probabilistic predictions for the 2008 US presidential elections based on market data from InTrade Ireland = electoralmarkets.com
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– This is a dynamic chart, which is up to date. Click on the image, and open the website in another browser tab to get the bigger version.
The Value of Tom Brady?
New England Patriots’- quarterback Tom Brady suffered a season-ending injury during yesterday’-s game with the Kansas City Chiefs. After he left the game and before the extent of the injury was known, the TradeSport’-s contract on whether the Pats would win the Super Bowl fell about 5 points (from 21 to 16). Then at about 6:30pm ET Yahoo Sports posted a story that he was done for the year and the price collapsed. It has now stabilized at about 8, so the injury experiment suggests that a healthy Brady was worth about 13 points in this market.[*] I hope his agent is paying attention.
[*] Possibly understates Brady’-s value since there were already concerns about his health prior to the injury.
link: Tradesports NE Pats market