black friday

Online Poker Showdown: States Step Over Feds to Legalize iGaming

by Michelle Minton on May 20, 2011

in Nanny State, Personal Liberty

In the wake of a federal clamp-down on Internet poker, states are forging ahead with their efforts to explicitly legalize, regulate, and tax online poker. On Thursday, the Nevada state assembly unanimously approved legislation that would license and regulate online poker if and when the federal government explicitly legalizes online poker.

This stripped-down, caveat-laden version of the bill comes in the wake of the DOJ April 15 shutdown of prominent online poker rooms. Prior to “Black Friday,” several bills had been under consideration in the Nevada state assembly to legalize online poker, regardless of federal action.

The original bill, from which the current proposal was derived, would have given the Nevada Gaming Commission (NGC) the authority to develop and implement licensing procedures for interstate and intrastate gambling. Notably, the original proposal stated that the NGC could not deny operators simply because they had been operating in the states prior to explicit legalization — this is different from recent federal proposals which would have blocked foreign operators for at least two years or permanently if it is determined that they broke federal law by offering unlawful online gambling to Americans after the implementation of UIGEA.

Not surprisingly, PokerStars, one of the off-shore poker sites that was shutdown by the DOJ on Black Friday and would likely be barred from the U.S. under last year’s federal proposal to legalize online gambling. Reportedly, PokerStars contributed around $272,000 to political campaigns in Nevada, but most of the funds have been returned.

The approved bill calls for the NGC to develop rules for licensing and taxing by January 2012 which will be implemented only if the federal government passes legislation approving online poker.  This bill also requires that the online poker websites operate in a partnership with an existing gambling license holder or an affiliate that has been in business for at least five years.

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The Economics of Black Friday

by Ryan Young on November 27, 2009 · 1 comment

in Culture, Economy, Odds & Ends, Precaution & Risk, Zeitgeist

This year’s Black Friday was much more peaceful than last year’s. No tramplings were reported. There was a fight at a Wal-Mart in the wee hours, unfortunately. The store was temporarily closed, which led to this lovely scene:

[P]eople began “yelling and screaming,” pounding on the glass doors and trying to sneak into the store through the lawn and garden section. Store managers had to be sent outside to try to calm the crowd, workers said.

Which brings us to Black Friday’s most important economics lesson: not all costs are measured in money. Yes, the discounts to be had can be great. But you pay a price for them. The price can be waiting outside in the cold. It could be the crowds, the parking, or the long checkout lines. In rare cases like today’s Wal-Mart near-riot, safety becomes an issue.

Here’s an example of what I mean. Suppose the people who camp out all night end up saving $40 on their purchases. If they spend eight hours suffering in the cold, that’s a savings of only $5 per hour. Less than minimum wage. Some people don’t place much value on their time, it seems.

Or, for some people, Black Friday’s pomp, circumstance, and sales are a cultural experience. They’re worth all the trouble. For other people, they’re not. Wherever you stand, non-price costs should be factored into your shopping habits. Otherwise you just might be getting ripped off.