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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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