Indeed, a quick Google for "Prediction Markets" popped up, http://en.wikipedia.org/wiki/Prediction_market#Legality http://en.wikipedia.org/wiki/Prediction_marke

Indeed, a quick Google for "Prediction Markets" popped up, http://en.wikipedia.org/wiki/Prediction_market#Legality http://en.wikipedia.org/wiki/Prediction_market#Legality But then, tie that to real Securities ... its a miracle they got off with only $20,000 in fines.