I’m not sure about this, but there is a possibility that this sort of model violated US online gambling laws. (These laws, along with those against unregulated trading of securities, are the primarily obstacles to prediction markets in the US.) IIRC, you can get into trouble with these rules if there is a payout on the outcome of a single event, which seems like it would be the case here. There’s definite gray area, but before setting up such a thing one would definitely want to get some legal clarity.
I’m not sure about this, but there is a possibility that this sort of model violated US online gambling laws. (These laws, along with those against unregulated trading of securities, are the primarily obstacles to prediction markets in the US.) IIRC, you can get into trouble with these rules if there is a payout on the outcome of a single event, which seems like it would be the case here. There’s definite gray area, but before setting up such a thing one would definitely want to get some legal clarity.
I agree, the legal aspect is my main concern, double so if people can exchange/sell these agreements later on.