Polymarket gamblers betting millions on war (theguardian.com)

by sandebert 128 comments 163 points
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128 comments

[−] nunez 34d ago
Not a new phenomenon! It happened during the War on Iraq. https://www.nytimes.com/2003/03/02/weekinreview/you-can-bet-...

People will bet on absolutely anything; gambling is as old as time itself.

> Wagering was generally legal under British common law, so long as it did not to lead to immortality or impolity.13 Bets about the outcome of events in war, over the death of political leaders, over court cases, or between voters over election results were illegal on these grounds.14 In the Victorian and Edwardian periods, the British government increasingly attempted to limit gambling, especially among the working classes. The Gaming Act of 1845 made gambling contracts and debts unenforceable in court (but otherwise liberalized what amounts could be wagered); the Betting Houses Act of 1853 outlawed the operation of betting establishments other than private clubs; the Betting Houses Act of 1874 cracked down of the advertisement of wagering; and the Street Betting Act of 1906 made acceptance of wagers in streets and public places illegal.15 Despite the legal uncertainty in the late 19th and early 20th century, the Fleet Street press reported on election wagering at the London Stock Exchange and at Lloyd’s in markets for Parliamentary “majorities.” [^0]

[^0] Rhode, Paul W. “The Long History of Political Betting Markets.” KU School of Business, 2012 March. https://users.wfu.edu/strumpks/papers/Int_Election_Betting_F...

[−] elicash 34d ago
Your comment is a great addition to the conversation. I do just want to add the scale point, though. That source is less than a million was bet, and now there are hundreds of millions bet on the ceasefire, and millions more on other Iran bets, and then even more bet on Russia/Ukraine.

So I think it's a bit overstated to frame it as nothing is new. But your historical context is helpful.

[−] rayiner 34d ago

> That source is less than a million was bet, and now there are hundreds of millions bet on the ceasefire, and millions more on other Iran bets, and then even more bet on Russia/Ukraine.

I'd imagine those numbers are typical for any transaction facilitated by the Internet comparing 2003 to 2026.

[−] elicash 34d ago
It seems to me there's an explosion in just the last few years that's noteworthy -- that gambling on war did not simply grow hand-in-hand with all web purchases. Am happy to be wrong, but that's my experience seeing this play out.
[−] bobwaycott 34d ago
I’m sure that immortality was meant to be immorality, but the idea of British law prohibiting some Faustian bargain struck with eternal life on the line if the wager works in your favor gave me a good chuckle.
[−] casey2 33d ago
There was a small period, yes, where the internet was less regulated because the government didn't want to stomp out a new technology and let another country get an advantage. Now that the US has the advantage they are only harming their citizens by leaving it unregulated. Less people engage in a behavior if it's illegal and uniformly enforced.

Wagering was commonly legal, but generally illegal since 1541 Henry VIII banned for laborers & servants.

[−] 1vuio0pswjnm7 34d ago
"Not a new phenomenon!"

True, but I cannot find anything in the article that suggests such betting is a "new" phenomenon

Often unclear to me what is the point behind the common "this is not new" HN reply when the submission makes no explicit or implicit claims that the subject matter is "new", or that being "new" is significant

IMHO, the "this is not new" replies need further elaboration to clarify the point being made

[−] 1vuio0pswjnm7 32d ago
It could be that these "this is not new" HN replies are not responding to the submission, its author or its subject matter but are instead focused on HN thread readers and other HN commenters and what those readers might think or how those commenters might react

If there is a submission or a comment that makes a claim such as "this is unprecedented", then a "this is not new" reply, preferably with supporting evidence, makes sense

But that's not what's going on here

[−] potsandpans 33d ago

> Often unclear to me what is the point behind the common "this is not new" HN...

Because articles like this tend to come with a implicit or explicit moral outrage.

So these comments are the equivalent of "yes... and?"

[−] datsci_est_2015 33d ago
This somehow strengthens the argument of the poster you’re replying to? “yes…and?” is a weak response to journalism intended to shine a light on something that causes moral outrage, especially given that “moral outrage” is justified on a highly subjective basis.
[−] potsandpans 33d ago

> This somehow strengthens the argument of the poster you’re replying to?

Is that a question or a statement?

[−] datsci_est_2015 33d ago
Using a question mark in such a statement is a rhetorical device to indicate an implicit question, such as “did you intend to write a comment that sounded like an argument, yet only strengthened the argument of the comment you were responding to.” Conversationally, humans usually inflect the end of the sentence to indicate such uncertainty. Have you had a conversation with a human before?
[−] miltonlost 34d ago
Still isn't something we should allow legally at scale on a public website. IS != OUGHT

Murder is also old as time itself! Guess we just gotta let it happen!

[−] PaulRobinson 34d ago
Every shareholder of an arms company (or holder of an index tracker), is betting on war too.

This mechanism is stupid, corrupt and driving extreme behaviour.

But betting on war is not new, and I find it abhorrent that people will hand wave away the military-industrial complex as an essential component to modern civilisation while calling individuals making bets on war horrible names.

It's just scale and semantics, not core differences to my eye.

[−] datsci_est_2015 33d ago

> It's just scale and semantics, not core differences to my eye.

Is this meant to be an excuse that justifies this gambling behavior? Children’s hospitals also gain a profit from the suffering and death of children, yet we would find it pretty abhorrent if people started betting on how many children died at the Mayo Clinic. Yet, it’s only scale and semantics.

[−] Chrisszz 34d ago
This is becoming the kind of "VC platform for online war investments". You: 1. Plan 2. Bet 3. Invest money upfront 4. Execute 5. Redeem your profits
[−] onlyrealcuzzo 34d ago
Giving people an easy way to profit (i.e. incentive) to use either direct political power or indirect power via bribes is going to have massive consequences on corruption.

We've made profiting off of corruption substantially easier. Anyone who thinks that isn't going to increase corruption is a moron.

Anyone who thinks having more corruption is a good thing is also a moron.

[−] echelon 34d ago
It's also going to lead to assassination markets, either directly or indirectly.

> "Johnny CEO will be alive in 2027"

That might be banned from platforms (though not illegal), but this isn't:

> "Jonny CEO is the primary reason ComanyAbc stock is so overheated. CompanyAbc stock will close above X market cap on December 31, 2027."

That is an indirect proxy for assassination.

There are multiple things that could happen here:

- Assassin(s) place bets for outcome favored by assassination, then assassinate.

- Rival(s) place bets for outcome that do not favor assassination to either claim lack of responsibility or to attract bad outcomes. They might publicly announce it, then quietly work on implementing the outcome or let it arise naturally to take the other side of the bet.

I can think of a number of CEOs, politicians, and world leaders where this would put them in the crosshairs and make market participants very wealthy.

Even the "X candidate wins Y election" outcomes are subject to this.

[−] Esophagus4 34d ago

> That might be banned from platforms (though not illegal)

They are currently trying to fix this: https://www.hickenlooper.senate.gov/press_releases/hickenloo...

[−] bdangubic 34d ago
chances of that passing are roughly in-line with chances of passing a bill to prevent our congressmen and senators from insider trading (you can also bet this as well :) )
[−] Chrisszz 32d ago
True.. I didn't think about that lol
[−] maxerickson 34d ago
Is there an infinite supply of fools money? There sort of has to be if it's clear that the outcomes are being manipulated by participants in the bets.

I guess people do walk into casinos and play games that are legally controlled to have outcomes favoring the casino.

[−] rvba 34d ago
If you are KGB you can intentionally lose in order to bribe someone.

This whole thing isa KGB propaganda tool + method to give bribes and should be banmed by the Western world.

[−] eru 34d ago
Traditional financial markets already give people really big incentives to cause all kinds of mischief. Eg buy a few puts, then publish some made up bad news about the company and profit.

Somehow that doesn't seem to be too much of a problem in practice.

[−] onlyrealcuzzo 34d ago
I don't care if someone tanks MSFT stock artificially or deservedly.

I do care if someone pays the president of Cuba $300k to launch a rocket at a skyscraper in Miami to start a war so they can make $1M.

If you're invested in MSFT, you signed up to be some part of a casino.

If you just live in the real world, you ideally did not sign up for infinite corruption that actually impacts your life just because someone wants to bribe politicians to get an ROI.

[−] eru 33d ago

> I do care if someone pays the president of Cuba $300k to launch a rocket at a skyscraper in Miami to start a war so they can make $1M.

Something is very wrong, if Cuba is so easily bought.

Btw, if that were so easy, why would counterparties even trade with the better at these prices? (And why wouldn't they also spend money influencing the president of Cuba?)

And: a war with Cuba with seriously dent share prices. So you can already do the bet you suggest by shorting stocks or buying put options.

[−] vr46 34d ago
I mean, the moment the American Supreme Court gave the president immunity for acts in office, they basically gave him the ability to issue a price list for doing absolutely anything.
[−] azan_ 34d ago
Could you explain what do you mean? What's the plan and execution here? Planning and executing invasion? If so, there are much better markets than polymarket for making such bets.
[−] PowerElectronix 34d ago
Now, can you find enough liquidity in the market to turn a profit? Can you find it before it becomes aparent something is off in the bet?
[−] aleksiy123 34d ago
I feel like there is two ways to frame this.

The first people betting on the outcome they want vs outcome they think will happen.

I think the second obviously make sense. If you had two experts arguing over how a war would go and they where willing to make a bet on it that is good because they are putting “their money where their mouth is” or have “skin in the game”. That’s a good thing.

The first implies manipulation or just a moralistic problem.

The issue I guess is it’s not possible to have one without the other. But I would guess most people are betting because of the second reason and not the first.

[−] Throaway199999 34d ago
honestly the profits aren't big enough when you can just go into business if you have that kind of influence
[−] daft_pink 34d ago
Just want to reiterate that prediction markets are beneficial, because they are the most accurate way to provide us with a dynamic mechanism to predict future outcomes from complicated systems.

As was put forth in James Suroweicki’s the Wisdom of Crowds, prediction markets provide predictions that tend to be more accurate than any expert, team of experts, etc. That doesn’t mean it’s 100% accurate, but it tends to be more accurate than any other mechanism that we have.

The benefit is not that gamblers have a place to gamble, but that society has a way to gauge the risks of different outcomes and plan accordingly.

[−] api 34d ago
Any time the headline is gamblers making millions the reality is 90% of gamblers losing, maybe 9% breaking even or making small wins, and a few making millions.
[−] BobbyTables2 34d ago
Reminds me of the part in National Lampoon’s Vegas Vacation when Clark Griswold goes to the 3rd rate casino and starts betting on weird things.