This case somehow keeps getting funnier.

Prosecutors say Google engineer **Michele Spagnuolo** was trading on Polymarket as **AlphaRaccoon** and had access to unreleased Google Search ranking data.

He allegedly used that info to bet on a bunch of Google-related markets before the results were public and made **more than $1.2M**.

Now his lawyers are trying to get the case thrown out.

And one of their main arguments is basically:

**these Polymarket contracts weren't financial swaps — they were just bets.**

Which is pretty funny considering prediction markets have spent years arguing the exact opposite whenever regulators call them gambling.

So we’ve reached:

Prediction markets:  
**“We are not gambling.”**

Guy accused of insider trading on prediction markets:  
**“Actually, this was gambling.”**

The defense also argues that he was living in Switzerland, using Polymarket’s international platform, so US commodities laws shouldn’t apply the way prosecutors claim.

No ruling yet, and obviously the allegations haven’t been proven.

But this might be my favorite prediction-market legal argument so far.

**So what are we calling these things now: financial markets or casinos?**

# Sources

* [DOJ case / allegations](https://www.justice.gov/usao-sdny/pr/google-employee-charged-insider-trading)
* [Full motion to dismiss](https://storage.courtlistener.com/recap/gov.uscourts.nysd.667058/gov.uscourts.nysd.667058.41.0.pdf)
* [WIRED write-up](https://www.wired.com/story/google-engineer-accused-of-polymarket-insider-trading-says-he-was-just-gambling/)

Google engineer made $1.2M on Polymarket. Now his lawyers arguing it was just gambling