Who is going to win the presidential election? Want to bet?
If you’re among the millions of Americans following the presidential race, then perhaps you can turn your political obsession into a tidy profit by betting on this year’s outcome—or hedge your potential disappointment and bet against your favored candidate. PredictIt.org, a political-futures website that allows participants to wager on political outcomes, on April 1 showed President Biden as a slight favorite over former President Donald Trump in the general election—at 48 cents to 47 cents a share, respectively. Those prices reflect a race that is within the margin of error of many polls.
Here’s how it works: Users can bet a maximum of $850 on any single outcome, though a spokeswoman for PredictIt says the average bet is about $100. You place your bet by purchasing shares, ranging in price from a penny to 99 cents, on the market’s platform. When an outcome is decided, winners get a dollar a share, while losers get nothing.
PredictIt takes 10% of profits as a commission, and there is a 5% fee for withdrawing money. The site is required to issue an IRS Form 1099 to traders whose net profits exceed $600 in a calendar year. A user betting $850 would make a profit of $828 on the 48-cent Biden shares if he wins, or $862.20 if Trump wins, before withdrawal fees.
Similarly, users could bet on Trump’s pick for vice president, with the top contenders being Sen. Tim Scott of South Carolina (25 cents), South Dakota Gov. Kristi Noem (19 cents), former Democratic Rep.
Tulsi Gabbard of Hawaii (12 cents), Rep. Elise Stefanik of New York (11 cents) and Arkansas Gov. Sarah Huckabee Sanders (6 cents).
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