You can now wager money (legally) on Norm Coleman or Al Franken in the U.S. Senate race. The Iowa Electronic Market (IEM) has started a new futures market dedicated to one of the highest profile political contests in the country.

The IEM was started in 1988 by a trio of economics professors at the University of Iowa. In the two decades since it has proven remarkably accurate in predicting the outcome of political contests. According to the University of Iowa, their markets have been more accurate than 74 percent of presidential campaign polls since 1988. (For more background on the political futures market see this piece in MinnPost, which is partnering with the IEM on the Franken-Coleman venture.)

There are two markets that investors can put money into: a “winner-take-all” market and a “vote-share” market. The former is simply a bet that one particular candidate will prevail, while the latter hinges on the exact proportions of the popular vote. Investments are limited to $500.

So where is the smart money going in the senate race? It’s a little too early to tell. But nobody’s invested in Franken yet.