Is it against the law for US citizens or residents to trade on overseas futures markets such as TradeSports.com?
Many view these types of prediction markets as gambling or betting. Does anyone have any experience with the US legal system's view of US residents and citizens participating in these sorts of prediction markets?
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Answers by: michael | ROLCAM | JSO1
Regulated equates to legal, and a US citizen can participate in regulated markets as long as accounts are reported to the Internal Revenue Service.
TradeSports, and its holding company, are not (or do not show up as) part of (or a member firm of) the Irish Futures & Options Exchange (or any other European futures or options body), as far as I can tell. They are unregulated.
An alternative example would be HedgeStreet (http://www.hedgestreet.com/) which started selling contracts on real estate prices, is now regulated by the CFTC, and can now push for approval of any type of futures contract they like. They are regulated (and legal).
Regulated equates to legal, and a US citizen can participate in regulated markets as long as accounts are reported to the Internal Revenue Service.
TradeSports, and its holding company, are not (or do not show up as) part of (or a member firm of) the Irish Futures & Options Exchange (or any other European futures or options body), as far as I can tell. They are unregulated.
An alternative example would be HedgeStreet (http://www.hedgestreet.com/) which started selling contracts on real estate prices, is now regulated by the CFTC, and can now push for approval of any type of futures contract they like. They are regulated (and legal).