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Buying the Extra Half Point Is Now Called 'Executing the No-Push Endorsement'

By Eric Lipman

Don't like those pesky laws against sports gambling stopping you from placing a hefty wager on France to win the World Cup? Well, just stop in to your local insurance agent. Because while you can't legally place a bet on the outcome of the tournament, it's OK to take out an "insurance policy" AGAINST THE RISK that France might emerge victorious. According to this Bloomberg article, Berkshire Hathaway overlord Warren Buffett disclosed in an interview this morning on CNBC that one of his insurance companies (it's so hard to keep track of them all) issued a policy that will result in a payout of $30 million if the French, underdogs to the tune of 12 to 1 according to Doc's Sports, manage to shock the world. The article talks about other "unusual" policies issued by Berkshire companies, including guaranteeing contracts of pro athletes, insuring against certain weather risks and backing companies that sponsor long-shot fan participation contests (blindfolded half-court shot, anyone?). Unusual? Maybe. But not flat out gambling on the outcome of a sporting event. Maybe there's some aspect of this policy that makes it less an end run around the prohibition on gambling, assuming the policyholder is even a...

Full post as published by Legal Blog Watch on March 01, 2010 (boomark / email).