After the holidays, we will officially enter the next election year. It may seem like it’s been going on for years already, but there’s still almost a year to go.
People will make their predictions, and maybe even some friendly wagers, on who they think will win. Now though, more formalized betting is being touted by the Chicago-based North American Derivatives Exchange, or Nadex. Nadex proposes allowing on-exchange trading for people who would like to predict with their pocketbook the outcome of the next presidential election and whether Democrats or Republicans will control the U.S. House and Senate. The application has been placed before federal financial regulators.
No problem, right? Well, don’t bet on it. In fact, the submission raises significant concerns. I think the new financial reform law was abundantly clear that gaming wasn’t a legitimate function for regulated markets. After all, this type of betting on elections is illegal in Nevada, and, they should know what betting means.
The 2010 Dodd-Frank financial reform overhaul not only prohibited gaming contracts, but also banned event-based derivatives deemed to be contrary to the public interest. The law further prohibits any such contracts that are tied to terrorism, assassination or war.
That all seems to make sense. Would we really want legalized betting on acts of terror, or something like a celebrity death pool? That’s not the stuff for serious federal regulatory oversight.
I don’t believe Congress wanted us to get into the gambling or entertainment business. Our country’s financial markets are serious risk management venues that help facilitate the economic engine of our democracy and determine the prices consumers pay for just about everything from a mortgage to milk. We shouldn’t trivialize the importance of these markets.
At a recent presidential debate, former Gov. Mitt Romney offered to bet Texas Gov. Rick Perry $10,000 that Romney’s position on individual mandates in health care was not as Perry characterized it. Romney took a little heat for the size of the unaccepted wager, but maybe it was all in good fun. Nonetheless, that’s where the fun should stop. Our financial markets weren’t designed for gaming. So, don’t bet on it.
• Chilton is a commissioner on the U.S. Commodity Futures Trading Commission.
Comments (13)
Add commentIt should not be the business
It should not be the business of the government if FREE individuals want to make a friendly wager on ANYTHING!
I should have added "so long
I should have added "so long as no third party is harmed".
madison89, what a profoundly
madison89, what a profoundly stupid idea.
jeremiah johnson
ok hollywood
I'm betting on Obama to win
All the GOP candidates are imploding, and this week's flavor of the week in Gingrich. He swears his first divorce was his wife's idea, but divorce documents clearly prove otherwise.
Which means,
...he can't be trusted at his word, as if that's any surprise.
And republipukes will soon remember that he resigned in disgrace as Speaker during Clinton's presidency (snicker). He's no leader. Not by far.
Then, there's Bachmann (chuckle), Perry (snort, giggle) and Cain (hilarious laughter), oh, I'm sorry, I'm just, well, I enjoyed seeing them all go down in flames. They are more amusing than Sarah Palin. Well, almost.
So, this leaves the Mormon Mitt. And no self-respecting evangelical christianoid would vote for a cult member whose cult requires the wearing of special underwear (giggle). Here's the underwear !:
http://en.wikipedia.org/wiki/Temple_garment
So, the moderates will come to their senses, and they will hold their noses when they collectively cast their votes for Obama.
At least he's not insane like the others listed above.
You republicans must be so proud (giggle).
@oneofwee
Dude, I seriously doubt Ron Paul will get the GOP nomination. It'll be Newt or Mitt, and neither will win the general election.
Which means, Ron Paul just might run as an independent. And, he will split the conservapukes' votes while freedom-loving liberals such as myself will ALL rally behind Obama and sail him to victory on the disgrace of the GOP.
It'll be a great day, just like it was in November 2008!
Nooooooo
7/1/ means you wager $1 and win you get $7
noooooo again
If you bet $7 and won you would get $49 back, plus the original $7. To win a dollar at 7/1 odds you bet around 14 cents.
Why is bigotry against Mormons OK?
It is telling that the ACLU types in Juneau are fine with bigotry against Mormons, such as on this comment webpage, but would have a fit if half the bigotry was shown toward Muslims or Atheists.
In today's world, the brownshirts come to beat up people who draw pictures of Mohammad, and the ACLU people are too afraid to help. But the Mormons don't threaten anybody and are conservative, so the ACLU people are perfectly smug in ignoring the bigoted attacks.