Political-betting websites that allow wagers on Tuesday’s election increasingly favor President Obama to be re-elected as the race — and the betting — head into their final hours.
Intrade, a top online prediction market where “investors” vote with their money, favors Mr. Obama to win an Electoral College victory over Republican challenger Mitt Romney, as his stock continued to tick up Monday.
As of about 7 p.m. Monday, more than two-thirds (68.5 percent) of Intrade bettors pick Mr. Obama to win over Mr. Romney, who garnered 31.4 percent of the vote. The president’s stock rose 4.1 percent during Monday alone, while Mr. Romney’s stock fell 8.7 percent.
In Betfair, which also measures the Electoral College, and the Iowa Electronic Markets, where gamblers pick who will win the popular vote, the president also had a considerable lead over Mr. Romney.
Proponents of these political gambling say these sites are more accurate than polls, because bettors vote with their money.
Mr. Obama has been the consistent favorite in these online betting markets during the general election campaign, although his “stock” fell sharply after his weak performance in the first debate against his Republican rival.
“It could simply be that nothing is changing and we’re getting closer to the election,” he explained. “There are no more debates that are going to happen, so no one’s going to say anything really positive or negative. Very little campaigning to be done. No more storms. Neither candidate is going to run out of money. There are not as many things that could happen as could’ve happened a week or two weeks ago.”
In the Iowa Electronic Markets, which takes bets on two popular vote questions, Mr. Obama peaked on Sept. 27 in the winner-take all market with 81.7 percent of gamblers expecting him to win, but his stock took a sharp hit and fell to 61.3 percent on Oct. 21. However, in the last week or so, the president enjoyed a steady increase as bettors realized there was less time for Mr. Romney to catch up.
“The fact that Obama’s rising may just be that he’s predicted to win and we’re just getting closer to the election,” Mr. Rietz said. “It could be the case that Romney was getting closer, but he’s just run out of time.”
In IEM’s “winner-take-all” market, gamblers must pay a certain amount to get a dollar if they pick the correct winner of the popular vote. If they pick wrong, they get nothing, so the more a gambler must put up, the better the candidate’s chances are perceived to be. In Monday’s trading, it cost an average of 74.7 cents to buy a share of Mr. Obama that would pay off a dollar if he wins. A Romney share, by contrast, cost just 26.6 cents.
In IEM’s vote-share market, gamblers must pick exactly how much of the popular vote either candidate will win. The average pick for Mr. Obama as of Monday is 50.9 percent, compared with Mr. Romney’s 48.7 percent.
Betfair, the London-based website that is the world’s largest Internet betting exchange, also puts the odds of Mr. Obama winning at 76.6 percent to 23.0 percent, according to PredictWise, a site that publishes research on these online betting websites surrounding the election.
Intrade and Betfair are the two most respected sites, according to PredictWise founder David Rothschild, because they predict the Electoral College, while IEM, based in Iowa, focuses on the popular vote. Intrade, based in Ireland, targets Americans, while Betfair is more popular with Europeans.View Entire Story
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Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at firstname.lastname@example.org.
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