Paddy Power pays out on Obama victory
The bookmaker is pretty certain of the outcome.
Paddy Power, the Irish bookmaker, has paid out on all bets that Barack Obama will win the US presidental election a day early, claiming that Obama is "a nailed-on certainty" to win a second term.
The move is part publicity stunt, part business move, and part a betting company taking a bet on the election – to the stake of $650,000, according to a press release from Paddy Power.
The publicity stunt aspect is pretty obvious – you're reading this story, after all – but the business move is slightly more interesting. Paddy Power, as with any betting company which pays out early, hopes punters will re-invest their winnings in a more uncertain bet on the election. The bookmaker is pushing the idea that the margin of victory is a fun bet to take part in, and it's certainly one where you could win more money: the odds of an Obama victory bottomed out at just 2/9, while if you follow Jim Cramer's prediction of a gigantic Obama victory, you could get 25/1.
And as for the bet on the election – well, Paddy Power will be pretty annoyed if they've called it wrong and have to pay out on Romney as well.