Regulations up their sleeve
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Re “Trading in politics? Don’t sell it short,” Opinion, June 27
Joel Stein’s foray into prediction markets is a smart exploration of the benefits of betting. But there’s a reason he found “so few people” in one online marketplace and “lots of action” in another: government regulation.
Prediction markets in the United States are subject to nebulous gambling laws and strict financial rules. In fact, the Iowa Electronic Markets is only allowed to operate thanks to a special “no action” letter from the federal government.
In contrast, the InTrade markets that Stein found so exciting are in Ireland and operate openly under Irish law, free from the murky restrictions that cripple prediction markets in the United States. No wonder they are more diverse, more useful and more lucrative. There is wisdom in markets, but our lawmakers and regulators must be willing to set them free.
Connor Mendenhall
Arlington, Va.
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