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86 B.U. L. Rev. 371 (2006)
Regulating Public Morals and Private Markets: Online Securities Trading, Internet Gambling, and the Speculation Paradox

handle is hein.journals/bulr86 and id is 383 raw text is: REGULATING PUBLIC MORALS AND PRIVATE MARKETS: ONLINE SECURITIES TRADING, INTERNET GAMBLING, AND THE SPECULATION PARADOX CHRISTINE HU RT* IN TR O D U C TIO N ............................................................................................... 3 7 1 I. THE SPECTRUM OF SPECULATION ....................................................... 377 A. Model: From Entertainment to Wagering to Ownership ............. 377 B . G am es of P ure Chance ................................................................ 379 1. L G am es ............................................................................. 3 7 9 2. Entertainment Value, Utility, and Social Costs ..................... 380 C. Type A Speculation: Wagers Involving Mostly Chance and S k ill .............................................................................................. 3 8 1 1. W G am es ............................................................................ 38 1 2 . D eriv ativ es ............................................................................. 3 82 3 . D ay T radin g ........................................................................... 384 4 . U tility .................................................................................... 3 8 5 D. Type B Speculation: Wagers Involving Some Chance/Some S k ill .............................................................................................. 3 8 7 1. Sp orts B ettin g ........................................................................ 388 2. Stock T rading ........................................................................ 389 3 . U tility .................................................................................... 3 9 0 E. Ownership: Wagers Involving Mostly Skill/Some Chance .......... 392 F. Inside Bets: Insider Sports Betting and Insider Trading ............. 392 II. REGULATION OF SPECULATION ACTIVITIES IN THE UNITED STATES.. 393 A. Historical Background of Gambling Regulation ......................... 394 1. G am bling B efore 1931 .......................................................... 394 2 . C asin o G am es ........................................................................ 397 3 . L o tterie s ................................................................................. 3 9 8 4. Pari-M utuel B etting ............................................................... 399 5. Sports B etting ........................................................................ 399 B. Current Securities Regulation Environment ................................ 401 C. Historical Arguments for Distinguishing Capitalistic Speculation from Gaming Speculation ........................................ 402 III. COMPARING APPLES TO APPLES: REGULATING SPECULATION ACTIVITIES BASED ON CHANCE, SKILL, AND UTILITY ........................ 404 A . Typ e A Sp eculation ...................................................................... 404 Christine Hurt, Visiting Assistant Professor of Law, University of Illinois College of Law; Assistant Professor of Law, Marquette University Law School. J.D., University of Texas School of Law; B.A., Texas Tech University. An earlier version of this paper was presented at the 2005 Law & Society Conference, and many in the audience and on the panel gave very instructive feedback. The author would also like to thank Victor Fleischer, Scott A. Moss, Joshua D. Wright, and the authors who provided comments on portions of this paper that were first offered on the weblog Conglomerate, http://www.theconglomerate.org.

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