Sunday, 11 April 2010

Centrebet vs the regulator [updated]

I'd previously noted that Centrebet offered worse prices on Reserve Bank of Australia announcements than were going over at iPredict; seems Australians won't even have access to those anymore. From "The Age", reprinted in the weekend Christchurch Press:
The Australian Securities and Investments Commission has moved to shut down betting on Reserve Bank interest rate decisions, giving the bookmaker Centrebet until today to desist or face the possibility of a court order "shutting down your business".
Their crime? "...carrying on a financial services business without holding a financial services licence."
Melbourne Law School professor Ian Ramsay said it would not be worth the bookmaker's trying to get the licence. The letter would effectively shut down its market on Reserve Bank board decisions.
Depressing news for the Aussies. Rather glad iPredict operates under specific declaration and exemption...

Update: Peter Martin has more.

Update2: the US, these markets are illegal 'cause they're too close to gambling. In Oz, they're illegal because they're too close to being a stock market.

1 comment:

  1. As George Stigler predicted; regulators create barriers to entry and control substitutes.