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They require no gambling license to be a stock broker on the Bolsa de Madrid stock exchange.
by delichon 5mo ago
They require no gambling license to be a stock broker on the Bolsa de Madrid stock exchange.
- nyc_data_geek1 5mo agoEquities are underlying collateral. Prediction markets are literally just betting on an outcome, no underlying asset exists.
- delichon 5mo agoCollateral is not uncommon in gambling (e.g. pink slips). That does not seem to distinguish gambling from speculating.
- bena 5mo agoThat's not collateral, that's the thing being wagered.
- petcat 5mo agoWhat collateral is underlying the massive, state-sponsored, Spanish lottery ticket and scratch off racket?
- JCTheDenthog 5mo agoI don't think you'd find anyone arguing that the lottery isn't gambling, so I'm not sure what argument you're trying to make here.
- contubernio 5mo agoA casino is by definition a house that takes rake and is not the government or one of its subsidiaries ...
- piltdownman 5mo agoPrediction Markets act the same way as Gambling Exchange - the assets are denominated as both sides of the book minus the spread. https://www.betfair.com/exchange/plus/ https://www.betfair.com/exchange/plus/
- pantulis 5mo agoEven if it was the same --I think it's not-- you'll need a "SIBE operator license", and cannot do it solo, you have to be an employee of an authorized firm (bank, broker or dealer).
- delichon 5mo agoIt seems redundant to have two different regulatory systems for slightly different kinds of speculation.
- RandomLensman 5mo agoThere are all sorts of different regulatory systems for all sorts of slightly different kinds of things.
- orwin 5mo agoI think it's fine. Here renting (or teaching) light sails (light catamaran) needs a different license than renting (or teaching) any sail cruiser, including catamarans, despite being basically the same object (boats with sails). Feels that the small differences are enough to justify a different regime.
- wsatb 5mo agoHow do you defend these slimey companies? They’re actively running a mob casino and you still have people acting like government is the bad guys here. That doesn’t mean there can’t be better regulation of other markets, but comparing prediction markets to stock markets is a huge stretch.
- delichon 5mo agoDisagree, I find their product valuable and use them daily as a source of unusually high quality predictions. When used for this purpose insider trading is a feature that improves the quality of predictions. I see some fraud as in any market, but the overwhelming majority of transactions are voluntary, open and relatively informed within a highly transparent system. I think that self fulfilling prophecy attempts by deep pockets trying to sway markets by bucking trends generally transfers money from more to less foolish bettors.
- sorokod 5mo agoA thought experiment: how would you feel about betting on a market that is an the outcome of a medical procedure? On a negative outcome? On a market for a negative outcome of your own procedure?
- gventura18 5mo agoIs it bad to take out a life insurance policy right before you have a medical procedure?
- arter45 5mo agoIf the only person who can get the money is you (or your partner or children or whatever), it’s fine as a form of compensation for potential damages. If anyone, including your surgeon, can take that life insurance policy based on your life, things can go bad pretty quickly (hint: what happens if a profit-maximizing surgeon would earn a lot more money from your policy than from his regular job?).
- rtkwe 5mo agoIt's not like equities markets are unregulated, be serious.
- lifestyleguru 5mo agoYour comment explains long queues to lottery ticket offices every time I visit Spain:)
- tech_ken 5mo agoRight they require a brokerage license instead because it's a different industry. Not sure what your comment is trying to say here.