The more I think about the economic downturn in this economy, I think about how it affects things I pay attention to: music, movies, sports. In sports, we've seen the AFL go down, but I don't really see this happening to any of the large established sports, such as the NFL, NBA, or MLB. I even think the NHL will get through this without much stress.
However, I think the athletes are in for a surprise. Not a drop in wages from their teams, but a serious drop in their endorsement deals. Why would a car company throw millions at an athlete to advertise a car that nobody can afford? Ask Tiger Woods.
Monday, December 22, 2008
Sunday, December 14, 2008
Stick to the fried chicken Kentucky
Here's another example of people who just do not understand the internet and do not realize what their actions could lead to. Kentucky is attempting to seize 140 domain names that are used for gambling websites. Their rationale is that these sites are giving the residents of Kentucky illegal access to gambling and therefore can be seized by the state. Full article
The companies they are going after are held off-shore. It is insane to say they have jurisdiction over these companies and that they can seize their domain name. Imagine Iran bringing legislation against MySpace.com because they feel it violates morality laws in their country and because of that, they are seizing that domain name.
Maybe that seems extreme, but think of American owned internet based companies that provide pornographic material. Imagine the Suicide Girls or Burning Angel losing their domain name and essentially their connection to their clients because a country with laws against pornography seized it. You are destroying a business that pays taxes and provides jobs because of a law in a country that has no jurisdiction over this company.
Maybe it is time to legalize online gambling and have companies in this country that you can monitor and regulate.
By the way Kentucky, isn't it legal to bet on horse racing in your state? I'm pretty sure there's a certain horse race that is vital to your economy. Well, let's just keep those blinders on.
The companies they are going after are held off-shore. It is insane to say they have jurisdiction over these companies and that they can seize their domain name. Imagine Iran bringing legislation against MySpace.com because they feel it violates morality laws in their country and because of that, they are seizing that domain name.
Maybe that seems extreme, but think of American owned internet based companies that provide pornographic material. Imagine the Suicide Girls or Burning Angel losing their domain name and essentially their connection to their clients because a country with laws against pornography seized it. You are destroying a business that pays taxes and provides jobs because of a law in a country that has no jurisdiction over this company.
Maybe it is time to legalize online gambling and have companies in this country that you can monitor and regulate.
By the way Kentucky, isn't it legal to bet on horse racing in your state? I'm pretty sure there's a certain horse race that is vital to your economy. Well, let's just keep those blinders on.
Friday, December 12, 2008
Arena Football League
Just a quick thought on what's going on with the Arena Football League. It appears that in the cities that this sport exists, the franchises are able to create a nice following. See this article for some more evidence of that. On average, these teams will get 12-13 thousand fans per game. They also have ESPN2 and ABC broadcasting games. However, the TV ratings are really low outside of the cities that are playing.
How do you change that? How has the NFL done this? Obviously the NFL is the more established league, but it has recently boomed. This is due in large part to Fantasy Football and sports gambling. To make people care about a team in a completely different part of the country, they need to have some stake in the game.
The legalization of online gambling would be instrumental in getting the AFL back on track. Once people start watching 3 games a week because they have a $5 parlay on the games, ratings will rise. Once they get into it, they can form fantasy leagues. Think back to the first fantasy league you joined. It was run by someone who gambled on that sport, right?
How do you change that? How has the NFL done this? Obviously the NFL is the more established league, but it has recently boomed. This is due in large part to Fantasy Football and sports gambling. To make people care about a team in a completely different part of the country, they need to have some stake in the game.
The legalization of online gambling would be instrumental in getting the AFL back on track. Once people start watching 3 games a week because they have a $5 parlay on the games, ratings will rise. Once they get into it, they can form fantasy leagues. Think back to the first fantasy league you joined. It was run by someone who gambled on that sport, right?
Wednesday, December 10, 2008
PPA Ad Campaign in DC
The Poker Players Alliance launched an ad campaign today in three DC papers. The full story can be seen here.
It mainly continues to spin the recent 60 minutes expose on internet gambling cheaters into a call for regulation. Those on the side of legalization have done an excellent job of turning that story into rallying cry rather than a devastating blow to their cause.
The part I found most interesting is below. This is a direct quote from the Poker Daily News story:
"A 2007 study by PricewaterhouseCoopers (PWC) attempted to estimate the amount of revenue that could be raised by taxing the industry. The study is based on HR 2046 (the Internet Gambling Regulation and Enforcement Act) and HR 2607, which taxes the industry 2% of deposits. PWC found that if sports leagues opted out, as did a high percentage of states, then about $8.7 billion could be raised from the internet gambling industry. Assuming a low number of states opt out, the number was more than doubled. If sports leagues elected to have regulated online wagering on events and only a few states bowed out, then as much as $42.8 billion could be raised over 10 years from the internet gambling industry."
I don't care how much you hate gambling, you have to like $42.8 billion in tax revenue.
The article also hints towards the fact that Rep. Barney Frank is already working on legislation to legalize internet gambling. He is definitely the greatest force behind the legalization of gambling, so be prepared to hear his name quite a bit in this blog.
It mainly continues to spin the recent 60 minutes expose on internet gambling cheaters into a call for regulation. Those on the side of legalization have done an excellent job of turning that story into rallying cry rather than a devastating blow to their cause.
The part I found most interesting is below. This is a direct quote from the Poker Daily News story:
"A 2007 study by PricewaterhouseCoopers (PWC) attempted to estimate the amount of revenue that could be raised by taxing the industry. The study is based on HR 2046 (the Internet Gambling Regulation and Enforcement Act) and HR 2607, which taxes the industry 2% of deposits. PWC found that if sports leagues opted out, as did a high percentage of states, then about $8.7 billion could be raised from the internet gambling industry. Assuming a low number of states opt out, the number was more than doubled. If sports leagues elected to have regulated online wagering on events and only a few states bowed out, then as much as $42.8 billion could be raised over 10 years from the internet gambling industry."
I don't care how much you hate gambling, you have to like $42.8 billion in tax revenue.
The article also hints towards the fact that Rep. Barney Frank is already working on legislation to legalize internet gambling. He is definitely the greatest force behind the legalization of gambling, so be prepared to hear his name quite a bit in this blog.
Tuesday, December 9, 2008
Hindsight is 20/20?
It has been 75 years since Prohibition was repealed in the US. And what have we learned since then? Apparently, nothing.
In the 1930s we had a struggling economy comparable to today’s. Americans were not allowed to purchase alcohol legally. This did not stop Americans from buying alcohol, it only stopped them from buying it through legal and regulated channels. This caused the alcohol to be made with poor standards of quality and the makers/distributors to go untaxed. People went blind from alcohol made cheaply from wood, caused criminal organizations to gain wealth and power, and gave absolutely nothing back to the American people.
Today, our economy is in peril once again and as the Bush administration is on their way out, they had a chance to show that we have learned from our mistakes. Instead, they pushed through the UIEGA, which attempts to ban online gambling. However, it does nothing but mirror the above image. While legalizing and regulating online gambling would not only bring in tax dollars that currently go directly to foreign nations, but the government could better protect the US citizens that gamble online.
It would also allow US companies to participate in the cash cow that is online gambling. This brings new jobs to a country that is suffering from record unemployment rates. It brings tax dollars to fund new programs to help Americans. How much, you ask? Current estimates say that this is currently and $8-10 billion dollar industry in the US. That is after some companies have stopped accepting US players. Taxed at 10%, we could see $1 billion in tax revenue.
This does not fix our economy much like the repeal of alcohol prohibition did not. But it helps. Not only that, it does what the opposition says it wants to do, protect Americans.
In the 1930s we had a struggling economy comparable to today’s. Americans were not allowed to purchase alcohol legally. This did not stop Americans from buying alcohol, it only stopped them from buying it through legal and regulated channels. This caused the alcohol to be made with poor standards of quality and the makers/distributors to go untaxed. People went blind from alcohol made cheaply from wood, caused criminal organizations to gain wealth and power, and gave absolutely nothing back to the American people.
Today, our economy is in peril once again and as the Bush administration is on their way out, they had a chance to show that we have learned from our mistakes. Instead, they pushed through the UIEGA, which attempts to ban online gambling. However, it does nothing but mirror the above image. While legalizing and regulating online gambling would not only bring in tax dollars that currently go directly to foreign nations, but the government could better protect the US citizens that gamble online.
It would also allow US companies to participate in the cash cow that is online gambling. This brings new jobs to a country that is suffering from record unemployment rates. It brings tax dollars to fund new programs to help Americans. How much, you ask? Current estimates say that this is currently and $8-10 billion dollar industry in the US. That is after some companies have stopped accepting US players. Taxed at 10%, we could see $1 billion in tax revenue.
This does not fix our economy much like the repeal of alcohol prohibition did not. But it helps. Not only that, it does what the opposition says it wants to do, protect Americans.
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