Online Gambling Site for Predictions Betting

Leading Online Gambling Site for Predictions Betting, On the Verge of Liquidation

Intrade, an online gambling platform for punters who place wagers on the outcome of real-world events, formally notified its customers last Friday that it is on the verge of liquidation. The online betting site seeks forbearance from its customers to give them time to collect monetary claims of US$3.5 million from certain parties up to April 16, 2013. If their collection efforts will have negative results up to the given date, the company has no other recourse but to go into liquidation due to a cash deficit currently estimated at US$700,000.

The notification served as update to the March 10, 2013 notice of suspension of Intrade’s trading activities, and in processing transactions for customers’ deposit account. The suspension was in view of the multi-million financial irregularities discovered by examiners, in the course of their audit.

How Intrade Betting Works

As an online betting hub, customers open a deposit account with Intrade and maintain funds they can use for buying or selling YES shares. Trading activities depend on how a customer predicts the outcome of a real-world event. YES prediction share closes at US$10 per share but if NO predictions prevail, the YES share closes at US$0.00.

Those who predict that the event will happen as predicted, will buy YES shares at less than US$10 per share. If the YES prediction wins, the YES share buyer collects the difference between the purchase price and the US$10 closing price from the seller, as his or her winnings. Those who predict the opposite, assumes the NO prediction by selling YES shares, instead of buying. If the NO outcome wins, the NO bettor gains by simply collecting the proceeds of the YES shares he or she sold to a buyer at the agreed selling price.

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