Fascinating story from one of my new employers, The New York Sun, about some folks who are willing to bet big money on the nominees of the major parties in 2008 and the next president.

A leading offshore bookmaker that is the largest sports book and casino on the planet, Sportsbook.com, compiled the list. Headquartered in Costa Rica, it also offers political wagers.

The $100,000 bet, made on Thanksgiving Day, was placed by a veteran specialist on the New York Stock Exchange who boasts an estimated net worth of about $1.4 billion.

The specialist, basically a market maker in Big Board stocks and a fellow who loves to bet on political outcomes, wagered his $100,000 that neither Senator Clinton nor Senator McCain, who are widely regarded as the Democratic and Republican front-runners in the presidential sweepstakes, would receive their party’s nomination to head the 2008 ticket.

On the other side of the bet are two hedge fund managers, one semiretired, who put up $70,000 each. The specialist, who got odds of 7 to 5, is anteing up $100,000 to win $140,000.

Even if both senators decide to pull out of the race, the specialist still wins the bet. Of course, if either one gets the nomination, he loses.

The article mentions, in a surprisingly offhand way, that is apparently illegal to bet on the results of a U.S. election. Anyway, for entertainment purposes only, here are the current odds:

Mrs. Clinton is the clear favorite in both parties at 3 to 1 (meaning you put up $1 to win $3, for a total return of $4). Mr. McCain is the runner-up at 6 to 1, while Vice President Gore follows at 9 to 2 (you bet $2 to win $9, for a total return of $11).

Included among the names pegged at 10 to 1 are Mr. Obama, Mayor Giuliani, and Governor Romney. Senator Edwards is quoted at 15 to 1; Secretary of State Powell, 25 to 1; Rep. Newt Gingrich, 40 to 1; Senator Kerry and Governor Pataki, 50 to 1, Secretary of State Rice, 60 to 1; General Wesley Clark, Vice President Cheney, and Senator Dean, 75 to 1; Governor Bush and Ralph Nader, 100 to 1; Mayor Bloomberg, 150 to 1, and General Tommy Franks, 200 to 1. 

Ten to one odds on Barack Obama? Boy, that’s surprising. I think Obama’s got a real shot; if Hillary stumbles, he’s the only remaining Democrat with any pizazz and charisma. I’d be pretty suprised if the GOP nomination were someone besides McCain, Rudy or Romney; you could bet on each of them and still come out ahead (even McCain gets you seven dollars back on a one dollar bet, as I’m reading this; if you bet a dollar on each one of them, you would get back four dollars on McCain and eight dollars on Rudy or Romney.)

And this might make me a late convert to the don’t-ban-online-gambling cause, but really, why on earth is it the government’s business if I or anyone else chooses to bet money on the outcome of an election?