He may lose his job and may commit crimes to get money for gambling. Gambling addiction is referred to as ‘compulsive gambling’ or ‘impulse-control disorder’, where the behavior of the gambler is similar to that of a person who has substance addiction.
When an individual realizes that gambling is destroying his family and social life, he thinks of quitting, but in just a few hours or within a couple of days, he is again found in a gaming zone or casino. There are chances that he has other psychiatric problems at the same time; for example, substance use disorder, mood and anxiety disorder, personality disorder, etc. Here are some useful tips regarding lifestyle changes to get rid of a gambling addiction.
‘Problem gambling’, also known as ‘ludo mania’, can destroy the life of the gambler and also of his/her family members. When a gambler with severe ludo mania meets certain criteria, the condition is diagnosed as ‘clinical pathological gambling’. Addiction to gambling at a young age increases the risk of suicide. But studies show that suicide attempts are usually made by older people with problem gambling. Analysis of casino customer data may help identify problem gamblers, but casino owners do not share this data for fear of losing their most lucrative customers (may be 25 – 50%). Study results show that a gambler who has not been treated for compulsive gambling during his desperation phase is likely to commit suicide. He lies to his family and friends, borrows money, and loses control over his mind and behavior. Despite being aware of the serious negative consequences, or despite having a strong desire to quit, he cannot stop himself from gambling. Researchers have noticed increased rates of mental health disorders in gamblers with severe ludo mania. To experience the same excitement, he needs larger wagers or more frequent gambling.. As he spends more gambling, he requires more money to recover his losses
The best example might be Starcraft. Probably if Riot decided to allow their young super-star Rekkles to play, they would be considered one of the favorites of the tournament. A community based business; DatBet.net is focused on making E-sports a recognized sport.
Yes, we will offer live betting for all games at LOL Worlds as well.
Examiner: How big does the betting get on DatBet.net? How many people are participating?
Examiner: What advice would you give spectators wanting to make smart bets for the World Championship?
The first, biggest event after Worlds will definitely be Blizzcon on 8-9 November. We also have very good LOL specialists, who already multiplied their money over 10 times as well.
Najin Black Sword, Royal Club and Gamania Bears starting their matches from quarterfinals are really hard to judge for totally different reasons. LCS teams have closed the gap significantly but definitely not enough. To protect your money we will check this data before withdrawal). What are the chances that will happen again? How strong are the different participating regions?
JF: Betting is typically an event based business. We accept all customers with exception to ones in Colombia, Hong Kong and Switzerland currently.
Visit DatBet.net to place bets on the League of Legends World Championship starting on Sunday, Sep. We have a few hundred users registered. SKT T1 after a stunning performance in OGN and Regionals is considered the biggest favorite to take it all with Galaxy Samsung Ozone and OMG just behind them.
JF: It is super easy. They seem to have a really strong lineup. As their regional games went in an extremely unusual way, considering both picks and game play, it is really hard to predict how they will perform against teams from other regions.
Examiner: Can you explain how a LoL fan would go about betting on the championships with your site?
JF: We believe the odds are for it. Najin Sword cause theyre consistently inconsistent from other top Korean teams. You deposit money into your account and there you go. After the World Championships there will still be bets on Starseries, WePlay Dota2, and WCS available.
JF: Are you asking, is it possible to earn real money on Esports? Yes, it is. You need to register first. For those who like risk Mineski and Fnatic might be the black horses of the group stage and Royal Club if they find their momentum might even win the whole tournament.
Examinr: After the LoL World Championship, are there any other big E-sports events DatBet.net will be taking bets on?
JF: We love Esports. There are days, when there will be only a few players betting, on the other hand during EU LCS ties there were like 50 people live betting each game.
Examiner: The League of Legends World Championship is starting on Sunday. How are the top teams looking as far as odds of winning go?
Examiner: Are people winning (or losing) hundreds or more dollars?
Besides that, I heard some unofficial news, that there will be a new big tournament/league coming up at the beginning of next year, but it is still unofficial and I am not allowed to say more.
JF: If you would like to go conservative I would favor SKT T1 and Ozone for sure. If you would ask any pro player will they beat a Korean team? I believe only a Chinese team would have answered positive. It will appear in the betslip on the right hand side, then you put the amount of money you want to bet and click bet now and confirm. We plan to offer live bets for it as well.. I know it sounds clich, but that is simply it. If I could bet and want some LCS team (to win) I would go with Fnatic. Finals with an LCS team would definitely be an upset for Asia and a great surprise for all LCS fans.
Examiner had the opportunity to speak with DatBet.nets Business Development Manager James Farrowy. He shared some great information on the world of E-sports betting and even gave some tips on who to put your money on when it comes to the LoL World Championship. Royal Club is extremely momentum based. The best player on Starcraft II Finals won over 6,000 USD just during the tournament, multiplying his money by 12-13 times. You can chose between single bet or parleys.
Examiner: Citizens of what countries are eligible to place bets on DatBet.net?
Examiner: E-sports betting is an emerging field and there aren’t too many resources out there for it yet. JF: We offer ongoing bets on most offline and the biggest online events. For now we offer customers bets on LOL, DOTA2, Starcraft and Counter Strike. From region strengths to how to place your bets this interview will help fans as they prepare to place some live bets on the upcoming E-sports event betting scene.
Examiner: Last year the World Championship came down to two Asian teams. They might be very strong or just an average team. Then just click on the odds you would like to bet. It takes like 2 minutes (just remember to enter all your personal data correctly. We believe we can develop E-Sports into a legitimate sport like football, or basketball and thanks to great community support we can compete with the big bookmakers, which will enter the market later.
JF: Koreans seems to be hyped and super strong before the tournament. DatBet.net is an E-sports only international betting website. 15th.
The Season 3 League of Legends World Championship is kicking off on Sunday, drawing attention to a new found form of entertainment, E-sports betting. What got the founders of DatBet.net interested in the business?
JF: Our license grants us the right to operate internationally. If they find themselves rolling they might get unstoppable, otherwise they probably wont pass the quarterfinals. Gamania Bears are a secret for us. Many of them deposited and placed at least a few bets
That being the case converting the fraction into a decimal is generally the easiest way of calculating it (see below).
Decimal odds are the easiest and simplest odds to calculate due to the fact that they are simply multiplied by the stake to give total returns. So for example odds of +550 would look like this:
Perhaps the easiest way of calculating fractional odds if you aren’t used to them is to convert them into decimal odds instead.. For example using -220 as an example:
+650 would return winnings of 650 with an initial stake of 100.
American odds are perhaps the most complicated of the three systems to understand and are based on how much one would have to stake in order to achieve a return of 100. For example decimal odds of 4.5 and a stake of 2 would be expressed as follows:
Converting American odds to decimals
Although a little more complicated, American odds can also be converted to decimal odds fairly easily, making them much easier to calculate.
Fractional, Decimal and American odds
Depending on where you are geographically, odds can be expressed in any one of three ways, each very different from the others. So for example -220 would mean that 220 would need to be staked in order to return winnings of 100.
For positive odds, ie those with a + sign next to them, we simply add 100 to the American odds figure and then divide by 100. The right hand figure in fractional odds represents the stake while the left hand figure represents the winnings.
For example 12/5 would mean that a stake of 5 would result in winnings of 12, however with a different stake this isn’t easy to work out. For example 10/1 would mean that a stake of 1 would yield winnings of 10, for a total return of 11 including the original stake.
2 (stake) x 4.5 (odds) = 9 (total return)
More complex examples however aren’t nearly so easy to calculate, particularly if the stake is different to the number expressed in the odds and won’t divide evenly
10/3 10+3=13 13 divided by 3 = 4.33
For minus odds we divide 100 by the American odds and add one. This often means that working the odds can be tricky unless you understand what they are expressing.
A plus sign in front of an odd represents how much a stake of 100 would return, so for example:
+550 + 100 =650 650 divided by 100 = 6.5
A minus sign represents how much would need to be staked in order return winnings of 100. For example:
100 divided by 220 = 0.45 0.45 + 1 = 1.45
We are then left with a decimal figure which can be multiplied by a stake figure to calculate a return.
Fractional odds, also known as English odds, are the oldest way of expressing odds and do so as a fraction. American odds are expressed with a + or – in front of them are are shown in units of ten.
In order to do this simply add the two figures of the fraction together and divide by the right hand number
According to their website, the number of full-time HD channels on offer as of today is 195, which is more than what Dish Network and Comcast offer. If you are opting for Comcast, you will have to pay an installation fee. If at all, these differences can help you figure out which of these is ‘your’ best bet.
Each of these three service providers have their own advantages and disadvantages. If you happen to be a sports fan, then DirecTV is your best bet; courtesy, its excellent sports programming. Each of these have been in the picture for quite some time now, and have set pioneering standards in the field of television broadcasting as well as other means of mass communicationtelephone and the Internet to be precise. Comcast is no match for DirecTV and Dish Network in this aspect. With DirecTV and Dish, you will have to shell out an additional $10/month for HD service. Every single service provider out there has a sugar-coated, cheap package on offer, but one needs to be wary of the same. The fact that each of these service providers have a subscriber base in excess of 10 million, best depicts their popularity.
Each of these companies have their USP, which is fiercely marketed by them, and their drawbacks, which are hidden from the consumer. In contrast, Dish and DirecTV fare better in this aspect.
Disclaimer: The services provided by these service providers are likely to differ from one area of jurisdiction to other.
Which Service Provider is Ideal for You?
The Contenders: Comcast Vs. The XFINITY TV packages from Comcast start with the Digital Economy pack, which gives you access to 45 channels, with a subscription fee of $29.95 per month for 12 months.
Even though these three service providers happen to be the bigwigs of the American home entertainment industry, there do exist some points of distinction which set them apart. Subscribers get to choose from DVR and Non-DVR Receivers, with the former ensuring that you get to watch your favorite shows whenever you want. Besides this, comparing the services they have to offer can help you get rid of all the confusion and make the ‘choosing’ part relatively easy.
Starting with Comcast Corporation, it has the distinction of being the largest cable operator and home Internet service provider, and the third largest home telephone service provider in the United States. DirecTV Vs. Dish Network satellite TV offers several packages, starting from the Welcome pack (40 channels) and Smart pack (55 channels) for $19.99 per month for the first 12 months.
Customer reviews are critical about Comcast customer support, which is yet another thing you need to take a note of. Similarly, the Hopper with Sling allows you to turn your PC, tablet, or cell phone into a TV. However, it would be unfair to rely on these differences alone to decide which one of them is the best. Dish Network
Yet another prominent name in the American broadcast television sector is the Dish Network. Similarly, the Hopper has a capacity of 2 TB, which is double that of the Genie at 1 TB (and thrice of what Comcast has to offer). This, in turn, gives rise to the dilemma as to which of these service providers one should opt for. If the recent talks of merger are to go by, they seem to be well on their way to ‘do something big’.
When it comes to home entertainment in the United States, Comcast Corporation, DirecTV, and Dish Network need no introduction. With each of these service providers boasting of thousands of titles, the On Demand feature has largely become a no show.
The largest cable operator in the United States is Comcast. In fact, the service provider has received a lot of flak for it. It provides these services under the Xfinity brand to residential and commercial customers in 40 states and the District of Columbia. It is difficult to say who will emerge the winner in the battle between Comcast, DirecTV, and Dish Network. It’s worth noting that the exact number of HD channels available will depend on where you happen to reside.
While DirecTV’s Genie DVR allows you record up to five shows simultaneously, Dish Network’s Hopper DVR allows you to record 8 shows at the same time. In order to figure out the same, we decided to take a look at each of them individually, whilst emphasizing on what they have to offer, and then pitch them against each other.
While going through the general review of Comcast, DirecTV, and Dish Network gives you a rough idea as to which one you should opt for, the final decision will entirely depend on your personal preferences. The 24-month service contract can turn out to be the Achilles heel for these satellite TV providers. With that capacity, it is possible to store 2000 hours of recording on the Hopper. That being said, both have the Free HD for Life Feature to offer. As opposed to this, if you opt for DirecTV or Dish Network, you won’t be charged any installation fee (that’s as long as you are willing to sign a two-year contract). In such circumstances, you will have to resort to one of the satellite TV options.. Even new customers are in a dilemma over deciding which of these three service providers to go for.
Regardless of whether you are opting for a switch, or you happen to be a new customer, confusion is bound to set in when choosing between these three, which more or less look similar, and that’s exactly where individual reviews come to your rescue. As far as packages are concerned, they start from the Select pack, with 125+ channels to offer, priced at $46.99 per month for 12 months.
While many people out there are happy with the services these companies provide, there are some who are contemplating the idea of switchingeither because of some unresolved issues with the existing service provider, or because the offers from the new service provider seem more tempting. While Comcast doesn’t require a long-term contract, it does promise some rewards for those willing to commit.
Satellite TV services, such as DirecTV and Dish TV, are vulnerable to signal disturbance during bad weather, and that is one thing that you need to take into consideration when you are choosing a service provider. Dish Network comes across as the best option with packages starting from as low as $19.99, but one should also note that this particular package has the least to offer. Dish Network
As far as the price factor is concerned, all the service providers give you the option of choosing and paying for what you want to see. As its name suggests, Dish Network can be accessed by means of a satellite dish and receiver. To be on the safer side, you will have to prepare a list of features which you are looking for and then compare these three on the basis of this list to narrow down to your final choice.
DirecTV boasts of its own general entertainment network, the ‘Audience Network’ (formerly known as ‘The 101 Network’) which is exclusively available for DirecTV subscribers. Additionally, it also holds the exclusive rights of several sports packages, including the NFL Sunday Ticket and NASCAR Hot Pass. (Basically, these low rates are called teaser rates; they are purposely kept below the market value to entice customers.)
Comcast Xfinity Packages
Dish Network Packages
AMERICA’S TOP 120
AMERICA’S TOP 120 PLUS
AMERICA’S TOP 200
AMERICA’S TOP 250
AMERICA’S “EVERYTHING” PACK
Note: Prices are subject to change.
Other than the number of packages and sports packages, DirecTV also has an edge in terms of full-time HD channels it has to offer. If DirecTV and Dish Network want to take on Comcast, they need to do something big. While Comcast services are not affected by bad weather, it might not even be an option for you if you reside in a region wherein cable network is yet to be fully developed
I find it tiresome, boring, and time-consuming, and Ive often …. Understanding the odds is something one has to do first because this is basic as far as the game of roulette is concerned.
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George Best would be proud By Jonathan Doe
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Growing up 12 miles from Fenway baseball was a very big deal in Lexington and I was determined to give it my best shot. played in final competition, but star players made every possible effort. Del Bosques team is able to be the titles contenders if the head coach manages to blend youth and experience perfectly.
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Professional American soccer player Matt Smith founder of this product. unceremoniously yanked from the game. As a beginner …. The myth goes that they sold their soul to the devil to know the …. The Dragons will participate in Euro final tournament first time. present team of Northern Ireland, who could be compared to George Best, but we are sure the legend of football would be proud of such notable achievement.
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An awareness of potential issues can help increase overall safety. opinion, this is the best lubricating product and the best value out there. You should read weather reports and try to avoid players who might be playing in rain or snow.
Articles 1 – 15 :: Prev | 1 2 3 4 5 6 7 8 9 .. These are rules based around multiplier levels basically, and some of them force the player to forfeit.
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Sports & Recreations Articles
Home Sports & RecreationsTips to Win at Online Slot Machines By Adam Lane
Have you ever heard about the Random Number Generator or RNG? You have heard, probably, if you consider yourself the professional slots player. Its a sport on its own with websites, blogs and columns exclusively dedicated to the game. offensive players scheduled to play against bad defensive teams. from the “million” cards. Online casinos …. But, what are they exactly? Can you really increase your winning odds …. Highly recommended for all gun owners, as well as home owners in general.
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Golf Camps– Something for Everyone!
Everyone can benefit from a pair of expert eyes that are watching how you swing and how you play the game. point target is considered short game and longer games can go up to 500 points. By omitting …. Now other descent lads have replaced them being ready to achieve higher goals.
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. why, it is the mistake to think that after the series of unsuccessful spins the following spin can be the winning or losing one under some conditions.
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A pool table consists of 6 pockets that are enclosed at the sides of the table. Of these, both the yellow and white can be used as cue balls or strikers. The history goes back to the 18th century, when the game used to be played in the poolrooms, where the gamblers of the horse races used to ‘pool’ the money that they used to bet, off the records. The word was used to describe the red ball. The cloth of a pool table is slow, as compared to that of the billiard table.
Pool utilizes different equipment than that of carom billiards. The original name is ‘carom billiards’. It is sometimes also referred to as ‘carambole billiards’. Both of these sets are combined into a single set of 7 balls which is then setup with a set of 8 black balls.
If you like either of these games, then this is a very obvious question that may come to your mind, time and again. Hence, the game got the untoward linking with the poolrooms and the gamblers. I myself for example, used to think that pool and billiards are just different regional names given to a game which is known as snooker! And needless to say that I was wrong! To know the difference, one must get to know the origin of both, which ironically is the same. Cue sports is the group of sports that are played with a cue stick and billiard balls, placed on a cloth covered table, that has rubber or leather cushion boundaries. There are various types of carom billiards and some of them are, cushion carom, straight rail, balkline, artistic billiards, and three cushion billiards.
Both games belong to the group of cue sports and this can be stated as the only similarity between the two but the differences are many.. Despite many initiatives of the rich class, the name pool was just stuck to the game and is still known so.
The name billiards can be given to the whole bunch of cue sports. The cloth that is used is fast, meaning the balls move more swiftly on it. Pool is played on a pocketed table with the ball size smaller than that of carom billiards. This game is played on cloth covered, but pocket-less tables. There are two sets of balls used here, one set of colored balls and the other set of striped balls. The balls used are relatively heavier and larger than the pool balls. This process is called ‘carom’.
Sometimes referred to as ‘billiard sports’, all the cue sports are basically indoor sports. There are literally a hundred types of pocket billiards being played all over the world, famous with names like eight ball pool, nine ball pool, straight pool and one pocket pool. The game is played with three balls, in which one is red, one is white and one is yellow. Pool, billiards, and snooker are the most famous forms of a sport, known as cue sports.
What are Cue Sports?
Differences Between Billiards and Pool
Cloth on the pool table, makes the movement of the balls a bit slow.
Cloth on the billiards table is fast, which helps in the swift movements of the balls.
Number of balls range from 1-15 according to the game.
At least three balls are used which are slightly larger than the pool balls.
Longer cue sticks, that are very slender as well as leaner, are used.
Smaller, with a thicker butt, shorter ferrule, fast taper, wooden pin joint and a small tip, are used.
Minimum size is 3.5′ x 7′.
Minimum size is 5′ x 10′.
The differences between them are many, the point structure and rules of pool are very different from billiards, but the similarity is, playing both the games requires a lot of skill and resolve.
The word carom which is actually a sort of abbreviation of the Spanish and Portuguese term ‘carambola’, which means ‘rebound after hitting’, came into general use during late 1860. In the later era, pocket billiards was initially the pastime of the rich and refined people. Divided into three sub-groups, pocket billiards, carom billiards, and snooker, are three totally different games, unified under the name billiards. The basic objective of the three cushion billiards is to hit both the target balls with the cue balls, while making three rails in tandem. What we refer to as ‘pool’ is originally known as pocket billiards! There is a small story behind it which I am sure, you would like to know. Many people have different assumptions and their own judgments when it comes to the differences. Where, cowboy pool, bottle pool, American four ball pool, and English billiards are some hybrid forms.
Basically, pool is not the original name of the game
It’s kind of silly when you think about it. Never bet more than you can afford, and never try to chase your losses. Thousands of players, many who could be classed as having a gambling addiction, purchase tickets week after week, o
ften with various beliefs:The simple, “If I play long enough, I’m bound to win.”
Cold numbers. People who do not understand this logical flaw often say things like, “I’m about due for a blackjack,” “The ball has landed on red seven times in a row – it’s gotta be black next,” and the ubiquitous, “Just one more spin!”
Although casino games can provide an exciting buzz, it’s important not to be swept up by this train of thought. Many
people cannot ever enter a casino for the purpose of entertainment alone, and feel a compulsive need to win. No casino secret or betting system can ever overcome this fact. If you have lost $1,000,000 buying lottery tickets, not only have you wasted an ample amount of money, but you’d be foolish to think that by playing again, you’d be more likely to win. Oftentimes, the basis for this gambling addiction lies within what is known as gambler’s fallacy.
What is “gambler’s fallacy”?
Gambler’s fallacy is, essentially, the statement that a gambling victory is “due.” Most people who visit a casino, I imagine, fall victim to the fallacy. I’ll get a ticket with 44.”
As you hopefully understand by now, none of those statements are true. So, what are the odds of flipping heads on the next flip? 50%
You see, it doesn’t matter what the previous outcomes were — it’s still 50/50. Washington’s face on that quarter doesn’t have a working brain. “44 seems to get drawn more than any other number.
A common example of the fallacy
Probably the most prime example of gambler’s fallacy is in the lottery. And no matter what supposed “patterns” there may be in the draws, each is completely random and independent of previous outcomes.
But what about computerized games?
One specific point I would like to end on are video slot machines and other computerized casino games. So, with all of this in mind, remember to bet responsibly. It’s got to be coming up soon.”
From all this math-talk and examples, I hope you understand that, when in a casino, either an online casino or a land-based casino, each wager you make is independent of others, and having a losing streak doesn’t mean it will ever end.
What are the odds of flipping tails on a two-sided coin? 50%
Let’s say you flipped the coin ten times, and each of those times it was tails. A
reputable online casino (essentially, one that obeys the laws), as well
as a land-based casino, is required to make each spin completely random.
Casinos cannot program these machines to payout every x games, and thus, they are no
exception to the lie that is gambler’s fallacy.
The reason behind the falsehood of the fallacy
Saying that you’re bound to win big eventually if you play long enough is false for, really, just one reason: inanimate objects don’t have memories. Crying “one more” too many times can lead to gambling addiction..
It’s quite a common, but sad, tale to hear: one of gambling addiction. The odds of that happening are about .09% — quite extraordinary. “17 hasn’t been drawn in over two years
But that doesn’t mean that the policy of allowing banks to issue derivatives — and laying the risk of failure onto the taxpayer — is right.
Bank recapitalization should be done in an open and transparent way, consistent with sound economic principles. If banks wish to write derivatives, they would have to do so through a separate affiliate within the holding company. But ultimately, in a crisis, worries about the consequences of such strong medicine will almost surely mean a bailout for the bank holding companies as well as the banks — as happened in this crisis.
In a crisis, the government will not only bail out the banks, but also the bankers, their shareholders, and their bondholders — if not totally, at least partially.
So if we are to protect American taxpayers, we must also bar any too-big-to-fail institutions from writing derivatives. They can play a positive role in risk management, but they are only likely to do that if there is the right regulatory framework.
Without the appropriate legal and regulatory framework, they will almost surely contribute, on balance, to the creation of risk — as they did in this crisis, and as they did a decade ago in the infamous Long-Term Capital Management bailout.
The provisions reported out of the agriculture committee are an important step in the right direction. What should be required is that creditors (other than depositors) and shareholders bear all the losses before the government is asked to pony up any money. government to step into the breach, to the tune of some $182 billion.
The modest proposal of the agriculture committee is that the U.S. The agriculture committee bill does not go this far; rather, it strikes a reasoned compromise between political expediency and economic good sense.
It would be a major mistake to walk away from this compromise by allowing FDIC-insured institutions to continue to write these risky products. But derivatives have been an enormous profit center for a few big banks (about $20 billion last year), so we should not be surprised that there is resistance to anything that is a real change to the status quo.
Derivatives have been advertised as an “insurance product,” insuring bondholders, for instance, against the risk of a loss. Many worry that if the affiliate within the holding company that writes the derivatives gets into trouble, Uncle Sam will still come to the rescue.
The bill, for instance, includes a “strong presumption” of losses for creditors and shareholders. In addition, derivatives have played an important role in all kinds of nefarious activities — from trying to obfuscate Greece’s real financial position, to vast tax evasion.
Derivatives are not inherently bad. government (the Federal Deposit Insurance Corporation) stop underwriting these risks.
Joseph Stiglitz says Washington has an opportunity to prevent another bailout He says Congress should make clear that banks trade derivatives at their own risk He says some derivatives amount to gamblingA few banks made a total of about $20 billion on derivatives last year, he saysEditor’s note: Joseph E. The government shouldn’t be subsidizing “insurance” — and it certainly shouldn’t be in the business of subsidizing gambling.
The Fed and the Treasury seem to object to the agriculture committee’s proposals. This will reduce the banks’ profitability, and it might force up prices of this “insurance.” But that is as it should be. We should now do the same for derivatives.
We should recognize that the agriculture committee provision is already a compromise. These objections show once again the extent to which the Fed and the Treasury have been captured by the institutions that they are supposed to regulate, and reemphasize the need for deeper governance reforms of the Fed than those on the table.
To be sure, banks’ high profits from derivatives would help with recapitalization, offsetting the losses they incurred from the risky gambles of the past. It was AIG’s inability to fulfill its obligations that led the U.S. But if they were really insurance products, they should have been regulated as insurance, with insurance regulators making sure that there was adequate capital to meet their obligations.
In reality, in many cases derivatives are more accurately described as gambling instruments. But right now, the institutions who write the vast majority of these derivatives are too big to fail. If the government guarantee is removed, the banks might have to put more money into their derivatives subsidiaries. And if the bank made bad gambles, the taxpayer wouldn’t have to pick up the tab.
This change would help fix the current system, where those who buy this so-called “insurance” enjoy the subsidy of the essential, free government guarantee; and where competition among the few issuers of these risky products is sufficiently weak that they enjoy high profits.
This arrangement is economically inefficient — firms should pay for the costs of their insurance.
The current finance bill contains reasonable proposals, developed by the Senate agriculture committee, under the leadership of Blanche Lincoln, that would rein in the most egregious abuses of these instruments.
The AIG experience should have made clear that derivatives can create enormous risks — risks that ended up being borne by taxpayers. Ideally, responsibility for writing derivatives should be spun out to a totally independent entity. This is the idea that the government should not be responsible for the “counterparty risk” — the risk that a derivatives contract not be fulfilled. He is the author most recently of “Freefall: America, Free Markets, and the Sinking of the Global Economy.”
(CNN) — As legislators continue to trade loud barbs over the details of the bill that seeks to overhaul our financial system, we risk losing a crucial aspect of reform in the din.
We now have an important opportunity to fix the regulation of derivatives — those controversial mechanisms that played a central role in the downfall of insurance giant AIG, and helped spark the Great Recession. But gambling should be subject to gaming laws, and derivatives aren’t.
Remarkably, in fact, derivatives have been left totally unregulated — a mistake that President Clinton, who failed to introduce regulations when he had the chance, now acknowledges. Stiglitz, the 2001 Nobel Prize winner in economics, is a professor of economics at Columbia University and former chairman of the Council of Economic Advisers during the Clinton administration. Abusive credit card practices could also help recapitalize the banks, but fortunately we have curtailed some of these. Congress’s current proposal is the opportunity to rectify that mistake.
One provision holds particular promise — and has the banks especially riled up. To allow them to do so would simply generate more political cynicism: It would show that the big banks have succeeded in their ambition of returning to the world nearly as it was before the crash.
The opinions expressed in this commentary are solely those of Joseph Stiglitz.
States like Kansas, Maryland, Massachusetts and New Jersey have already taken a pro stance on fantasy sports. Americans love gambling and sports. This business was launched on the basis that fantasy football is a skilled form of gameplay, not one based on chance or luck.
The gaming sites proved that their winners were based on one’s knowledge of the sport by awarding a large sum of their prizes to employees who used inside information to gain an unfair edge on the general public. It only makes sense to combine the two. These winners constitute roughly 1% of all players on the two sites.
This is the latest blow to fantasy sports legal standing. Last month Nevada regulators ruled that online fantasy sports are considered gambling, requiring these sites to cease operations until gambling licenses are acquired. This would be great if, as their ads imply, the prizes are fairly distributed, however this insider trading scandal brought their legal status into question. In the meantime they will continue to operate in the state of New York.
These online fantasy sports businesses, while relatively new, have substantial backing both by sponsors and fans alike. Draftkings estimates they have over 500,000 participants in New York alone. The New York Times reported that yesterday the New York State attorney general Eric T Schneiderman, ordered a cease and desist on the two online gambling giants demanding that they immediately stop taking bets from New Yorkers, under the premise that their operations constituted illegal gambling in the state of New York.
In his press release Schneiderman accused Draftkings and Fanduel of being leaders of a massive, multibillion-dollar scheme intended to evade law and fleece sports fans across the country. He goes on to say that these sports fantasy sites are marketed as a game that anyone can win but in fact distributes the vast majority of winnings to a small subset of experienced, highly sophisticated players. It is already a multibillion-dollar industry and will undoubtedly throw its weight around when pushed. Draftkings and Fanduel have openly strongly disagreed with Schneiderman and will pursue all legal options available to them. Any NFL fan will no doubt have seen the endless advertising by Draftkings and Fanduel, who were able to form a lucrative partnership with the NFL. These were no small prizes either as the amounts range from hundreds of thousands to millions of dollars, with the sites pledging to award over 3 billion in prizes alone this year. They have sent emails to these customers asking them to defend their right to play fantasy sports.
NFL is a big deal in this country and has millions of loyal followers who also happen to love betting on the game. At the end of it all it will be whoever can sway the masses that will be victorious.
. If Draftkings and Fanduel are able to leverage these fans against their state legislators they might come out on top
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