Tradesports.com launched it's beta on April 30 and provides a new real time fantasy game experience.
The website differs from other season long and daily fantasy games in that players can change predictions while the games are occurring. Contests can be played for free or players can choose to enter in contests for prizes starting at $2. Players can then enter orders, buy and sell shares, and even short stocks with the goal of making the most money among other competitors. At the end of the game, the player with the most money would win the game.
The site was founded by Ron Bernstein, the original co-founder of Intrade, and also serves as the CEO for Tradesports.com. Intrade was created to be able to be predictive model based on users prediction of world news and events. The site was shut down in 2013. In 2012, Intrade was was sued by the Commodities Futures Trade Commission.
The predictive model that made Intrade unique is something that is being brought over to Tradesports.com. Players behavior and choices can be data mined and analysed to make better predictions in the future, according the announcement today.
FtSb Says: Although the site is available to U.S. residents, it is only available in 40 of 50 states. It remains to be seen when the site is complete, how close does the nature of the games on Tradesports.com resemble fantasy sports or gambling. Although the UIGEA does make fantasy sports legal on the federal level, the game must meet certain criteria. For example, the amount of prizes money cannot be based on fees paid. In addition, there are state wide restrictions on fantasy sports. Although the site is trying to differentiate itself from season long formats and daily format, if the formats doesn't conform to fantasy sports, the site would be labeled as gambling and thus reduce it market penetration.
UPDATE: Tradesports.com reached out to me and wanted to clarify that they believe that they are in line with fantasy sports regulations. They believe their game is based on skill and and fantasy sports experience and is unlike gambling. In addition, Tradesports.com does offer free games to 10 of the states that do not allow play for money fantasy games. Thanks for the clarification, Tradesports.com. In addition, I've included CEO Ron Bernstein interview on Bloomberg's Television's "Market Makers"
