FOREX and Gambling

I was just reading an article on CNET news about how the United States has permanently banned BetOnSports, a London based gambling site.  The company, which is listed on the London Stock Exchange has to return all wagers accepted from US residents since July of this year.  

I really don't see much of a difference between gambling on sports and trading currencies.  In fact, you may have less protection trading currencies than you do gambling on a sports event.  Brokers really have created their own little exchange where they can determine the price of any given currency pair.  It isn't abnormal to see one brokers prices substantially differ from another.  On the flip side, if you gamble on sports, the company you're betting with would have a really hard time manipulating the score of a football game.  It isn't impossible but close to it.  Different gambling companies can have different "lines" on a game but this is known before you actually place the bet. 

Is your money any more protected at a currency broker than a sports betting company that's listed on the London Stock Exchange? I don't see how it is.  Ask a Refco customer who will never see their funds.  The fact is that there just isn't enough being done to address this issue by the CFTC, NFA, or the government. 

I guess this is all about politics because I just see this news as hypocritical…

U.S. permanently bans BetOnSports

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