Showing posts with label gambling. Show all posts
Showing posts with label gambling. Show all posts

15 January 2009

Trading Up to Open Source

One of the signs that the open source ecosystem is thriving is the appearance of solution serving vertical markets. Here's another one....

On Open Enterprise blog.

21 December 2007

Hypocrisy, Thy Name is Gambling

John Naughton points us to a nicely-written piece by John Lanchester about the way the City - and its global mates - work using derivatives to the tune of $85,000,000,000,000 (sorry, no mistake in that number of zeroes.)

It's a long piece because it's describing something that's complicated - sometimes made intentionally more complicated by the banking industry for the purposes of obfuscation - but at its heart it amounts to a very simple thing: gambling. As Lanchester writes:

The list of individual traders who have lost more than a billion dollars at a time betting on derivatives is not short: Robert Citron of Orange County, Toshihide Iguchi at Daiwa, Yasuo Hamanaka at Sumitomo and Nick Leeson at Barings, just to take examples from the early 1990s. In Leeson’s case in 1995, it was a huge unauthorised position in futures on the Nikkei 225, the main Japanese stock exchange. Leeson had been doubling and redoubling his bets in the belief/hope that the index would rise, and hiding the resulting open position – a gigantic open-ended bet – in a secret account. (Incidentally, Leeson’s big bet was on the Nikkei holding its level above 18,000. At the time of writing, 121/2 years later, the index sits at 15,454 – proof, if it were needed, that when prices go down they can stay that way for a long time.) The loss eventually amounted to £827 million, and destroyed Barings, Britain’s oldest merchant bank.

Got that? These are bets, pure and simple, on the way that things will work out. You can dress them up as you will, you can complexify them as you will, but at bottom they are simply gambles.

Now, add that fact to the distasteful sight of the US - a country that probably uses derivatives more than any other, and also probably makes more money from derivatives than any other, trying to stop online gambling with non-US companies - for example by buying off pathetically greedy entities like the EU:

The United States has reached a deal with the European Union, Japan and Canada to keep its Internet gambling market closed to foreign companies, but is continuing talks with India, Antigua and Barbuda, Macau and Costa Rica, U.S. trade officials said on Monday.

Since I'm no expert on derivatives, I don't know the extent to which you can buy them online from anyone anywhere, but I would be utterly astonished if you couldn't (and this suggests you can.) So you have a fundamental cognitive dissonance between the extraordinary use of derivatives worldwide, and the US attempt to ban online gambling though non-US companies.

Maybe the idea is that only the ultra-rich should be allowed to gamble wherever they want.

12 October 2007

Let's Make That a Round Trillion, Shall We?

Just to be on the safe side, you understand:


A Brussels think-tank has accused the US government of reneging on commitments made to the World Trade Organisation (WTO) over internet gaming.

Panellists at a trade forum levelled harsh criticism at the US, focusing on a burgeoning trade clash between the US and Europe over internet gaming.

The forum believes that the US could be liable for up to US$100 billion in trade concessions to European industries after placing illegal discriminatory trade restrictions on European gaming operators.

(Via Slashdot.)

29 August 2007

Yes! Yes! Yes! Yes! YES!

I've covered the dispute between the US and Antigua over online gambling before, but it looks like there's a chance the perfect endgame is actually going to play out:

Mr. Mendel, who is claiming $3.4 billion in damages on behalf of Antigua, has asked the trade organization to grant a rare form of compensation if the American government refuses to accept the ruling: permission for Antiguans to violate intellectual property laws by allowing them to distribute copies of American music, movie and software products, among others.

That is, either the US is forced to admit to the global community its hypocritical attitude to online gambling, and allow foreign companies to operate sites accessible by Americans; or the entire edifice of intellectual property in the US is rogered; or the WTO implodes.

Sounds like win-win-win to me. (Via TechDirt.)

21 June 2007

US vs. WTO

I've written about the spat between the US and Antigua before, but it looks like things are getting really heavy:

And so, today, what is expected to become a parade of countries demanding sanctions against the United States as a result of its refusal to comply with WTO rulings on gambling services began to form, as Japan and India piled it on with more demands for compensation. Every other signatory affected will have a right to demand sanctions, and those sanctions may, depending on the circumstances, be applied against any American industry, from automobiles to semiconductors.

Something's got to give: I wonder what it will be.

23 May 2007

Please, Antigua, Please

Go for it:


Repeated violation of WTO commitments in the face of contrary WTO rulings allows a victimized member country ultimately to suspend its own WTO obligations to the offending nation - a form of restitution much more punitive than tariffs alone. America runs a steady and hefty trade deficit in virtually every category of international trade other than intellectual property.

Were the WTO - with possible European, Japanese, and Chinese support - to allow the Antiguans to suspend all intellectual property obligations to the United States, the American IP industry could face a tiny adversary with an unlimited right to reproduce for its own benefit American IP goods of any kind.

17 November 2006

I, For One, Salute Our New Antiguan Overlords

Many martial arts are based on turning your assailant's power against himself. Sounds like the plucky Antiguans have taken a course or two:

If the United States remains recalcitrant [over its refusal to open up online gambling], under the WTO rules, Antigua would potentially have the right to suspend its own compliance with the treaty that obligates it to respect the United States' intellectual-property laws.

Go, Antigua, go.

19 September 2006

Wisdom of the Football Hooligans

Now here's a spooky story:

PicksPal is a free sports site where people “bet” on upcoming games. No money is involved. If they win, their point total goes up and they have bragging rights around the office. Since launching about a year ago over 100,000 people have joined the site, making daily picks on just about every kind of sporting event in the U.S. - boxing, NFL football, pro football, bass fishing, ultimate fighting, basketball, baseball, etc. The site makes money from advertising.

Recently, however, the PicksPal team noticed that a very small percentage of users tend to be correct in their picks significantly more often that they should be statistically. When they grouped these special users they found them to be a powerful predictive force.

I care not a jot for sports or betting, but what is interesting here is that the idea can be generalised. You set up a site devoted to a particular domain with uncertain results, and invite visitors to predict the future. You then analyse the patterns over time and try to find groups of people who consistently beat random guesses.

27 January 2006

Wolfgang Amadeus Mozart, Hacker

Today is the 250th anniversary of the birth of Wolfgang Amadeus Mozart. Most people know him as one of the world's greatest composers: a child prodigy, creator of over 600 works, and – if you believe some of the wilder rumours - fatally poisoned at the age of 35 by a rival composer. Few, though, are aware that Mozart was also a hacker.

Computers may not have existed in the eighteenth century, but the musical machines called orchestras and choirs are conceptually identical to synthesisers, which are themselves specialised music computers. Just as programming code specifies how a computer should act (and a MIDI file controls a synthesiser), so musical code – in the form of a score – directs what instruments and voices should do and when.

Conductors are largely superfluous in all this (at least for Mozart's music): they do not create the output, which is specified by the score. All they do is interact with the score “loaded” on the orchestral or choral machine, in the same sense that someone might interact with a video game loaded on a console. The incidental nature of humans in the performance of classical music is shown by some pieces that Mozart wrote at the end of his life for a clock with built-in mechanical organ. Here the scores completely determined the audio output: there was no human intervention once the music had been converted to a kind of piano roll – a forerunner of the punch cards employed a century and a half later by the early commercial mainframe computers.

More generally, though, hacking is a state of mind, a way of understanding and exploring the world, independent of a particular technology (and not to be confused with “cracking”, which is the correct name for the kind of digital smash and grab too often in today's headlines). Richard Stallman, perhaps the greatest hacker of modern times, has defined the essence of hacking as “playful cleverness” - as good an encapsulation of Mozart's genius as any.

The cleverness showed itself early. Mozart started learning the piano when he was three, began composing when he was five, and wrote his first symphony and opera at the age of eight and 11 respectively. Like many top coders, he frequently worked out everything in his head before consigning it to paper at a single sitting (often just hours before a deadline – again, just like some programmers), and usually without the need for revisions (that is, bug-free). He could also multi-task: he is supposed to have written one of his finest works during a game of skittles.

Like any red-blooded hacker, Mozart adored mathematics as a child (and gambling as an adult), found word-play irresistible (email would have been perfect for him) and loved setting himself puzzles. His Musical dice game uses dice throws and pre-composed short fragments of music to form compositions created by random numbers; the challenge was writing fragments that would fit together whatever the throws. At one point in his opera Don Giovanni, in addition to the main orchestra accompanying the singers, there are three more orchestras on stage, each playing completely different music. It all fits together so perfectly that most opera lovers are unaware of the compositional tour-de-force they are witnessing.

Mozart's playfulness was a key facet of his character. The musical form he seems to have enjoyed writing most – opera buffa – is simply Italian for “funny opera”. In several concertos composed for a horn-playing friend, Mozart added jocular comments to the music - “Slowly, Mr Donkey”; “Breathe!”; “Go on!”; “Oh, filthy swine!” - an early example of commented code. He sometimes employed different coloured inks in a score, rather as modern programming tools do to differentiate various elements. Another piece, called A musical joke, includes notes that are blatantly wrong. If the musicians play them as written, they sound incompetent; if they play the “right” notes, they have failed to perform the piece as the composer intended, and so are indeed incompetent.

Significantly, Mozart was a big fan of a key hacking concept known as recursion, whereby something refers to itself to create a kind of infinite loop. For example, a core hacking project started and led by Stallman is called “GNU”, an acronym for “GNU's Not Unix”, which uses itself in its own explanation. (Recursion is another example of playful cleverness).

Recursive music is created by employing a delayed version of a tune as its own accompaniment. Formally, this is known as a “canon” (simpler versions, like the song “London's burning”, are called “rounds”), and Mozart wrote dozens of them, mostly for himself and his friends to sing at purely private performances. They are notable not only for their fine music, but also for the texts Mozart chose to set: “Lick my bum” is one memorable line that crops up more than once. Today's hackers, too, enjoy dubious lyrics, and have an earthy turn of phrase: the injunction “RTFM” - often thrown at hapless newbies - does not stand for “Read The Flipping Manual”.

Another notable characteristic of hackers is their fondness for science fiction. Overt references to Star Wars may be thin on the ground in Mozart's works, but many of his operas written in the older, “serious” style are based on the same eternal themes of good versus evil and love versus duty that lie at the heart of George Lucas's epic.

The science-fiction writer Arthur C. Clarke once suggested that any sufficiently-advanced technology is indistinguishable from magic; the corollary is that magic is indistinguishable from sufficiently-advanced technology. So Mozart's last opera, The Magic Flute - full of other magical objects, too - is, from this viewpoint, a work of science fiction. It is also a Masonic opera, steeped in mysterious symbols and rituals that will be nonetheless be familiar to the hackers who participate in MMORPGs (Massively Multiplayer Online Role-Playing Games), where characters join guilds, complete quests and seek to gain experience points - just like the hero in The Magic Flute.

The close links between music and hacking run both ways, and many of today's top coders are highly musical. Richard Stallman – whose dedication to the cause of freedom is positively Beethovenian - carries with him a soprano recorder wherever he travels. The profoundly-religious and frighteningly-cerebral Donald Knuth – a kind of hacker J.S.Bach - was moved by his love of music to have an 812-pipe baroque organ built in a specially-designed room in his house. Appropriately enough, Knuth's life-work is called The Art of Computer Programming (Bach called his The Art of Fugue). Representing a different musical tradition, Brian Behlendorf, the prime mover behind the Apache Web server program that runs two-thirds of the Internet, DJs ambient and dub music. And it is well known that for most hackers the crucial first step when they start working is to fire up some particularly loud and inspirational music on their computer. Mozart would have approved.