Sports Gaming Industry Instability Widens...

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With the recent arrests of offshore sportsbook CEO's in the US, is it conceivable to think that a regulated and leagalized sports stock exchange could stabilize the industry?

The reason I ask this question is because after getting involved with a start-up company from Costa Rica that is currently presenting their novel sports derivative stock exchange to US congressmen and senior level finanical experts in Virgina, I feel its finally a perfect time for an 'alternative' to sports wagering to make its case to the government.

By creating a legalized regulated, non-gambling method of tying team performance to financial incentives, and then subsequently taxing capital gains and dividend income like any other brokerage house; wouldn't you think that any government would be in favor of recoveing millions of dollars that go offshore every year to sports wagering outfits?

If you have some time please listen to this radio interview between the President and CEO of this start-up, Chris Rabalais, and WCCO 830 Minneapolis News/Talk Radio personality Dark Star.

WCCO August 9th Interview with Dark Star

Also if this peaks your interest further, please check out this [URL="http://www.myspace.com/allsportsmarket that includes more information as well as past PR and media tv clips.

I'm really interested to hear some constructive comments from all of you faithful RX members who either work in or spend a ton of time in the offshore gaming industry.

Thanks for your time, and I look forward to reading the responses.
 
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From my discussions with the CEO, I can say that they are actually working with the creator of the chicago merchantile exchange, and various other individuals who have the necessary background to propose a new financial instrument and an independent exchange that it would be traded on.

The creator of the 'sports derivative' is a PhD graduate from UCLA's department of economics, who was also a active trader on the site.

Dr Alper Ozgit devoted chapter 3 of his dissertation to the creation of a new finanical instrument, known as a 'sports derivative'. The following pdf document explains the instrument, the platform in which it currently trades on, and the significance that it could have on the sporting industry/economy. Sorry it's a little longer than cliffs notes, but it is a fantastic and interesting read and really got me hooked on the concept.

www.SportsTradingSecrets.com/AlperOzgit.pdf

Did anyone listen to the radio clip above? Alot of the regulation and legislation issues are actually being headed up by Dr. Ozgit who is woking hand in hand with those key individuals to actually write the ISO standards. Don't be surprised if there will be an SEC of the sports world sooner than later.

Anyways, enjoy the read everyone.
 

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big BUMP...

Here is the offical announcement from President and CEO this morning following the news concerning the Online Gambling bill that will be passed in the coming week.

Anyone want to chime in NOW? :nopityA:

====================================================

Good morning.

The Unlawful Internet Gambling Enforcement Act of 2006 now being sent to President George W. Bush for his signature is destined to drastically change the landscape of Internet gambling and gaming worldwide.

A complete copy of the Act can be found here:
http://www.sportstradingsecrets.com/hr49543_portscr.pdf

Key clauses that are directly related to the operation of our platform can be found on page 215 line 19 through page 216 line 19.

ASM has never been and is not an online gambling or gaming site by legal definition.

AllSportsMarket.com is a Global Sports Financial Exchange (G.S.F.E.) that trades Sports Derivatives 24 hours per day.

Chris P. Rabalais
President/C.E.O.
AllSportsMarket.com
Monday October 2, 2006
10:40 A.M. U.S. Eastern
 

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i listen to dark star alot on wcco. this guy reads the totals and moneylines of the final games, is a big gambling guy. good guy to.
 

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Peebs said:
With the recent arrests of offshore sportsbook CEO's in the US, is it conceivable to think that a regulated and leagalized sports stock exchange could stabilize the industry?

The reason I ask this question is because after getting involved with a start-up company from Costa Rica that is currently presenting their novel sports derivative stock exchange to US congressmen and senior level finanical experts in Virgina, I feel its finally a perfect time for an 'alternative' to sports wagering to make its case to the government.

By creating a legalized regulated, non-gambling method of tying team performance to financial incentives, and then subsequently taxing capital gains and dividend income like any other brokerage house; wouldn't you think that any government would be in favor of recoveing millions of dollars that go offshore every year to sports wagering outfits?

If you have some time please listen to this radio interview between the President and CEO of this start-up, Chris Rabalais, and WCCO 830 Minneapolis News/Talk Radio personality Dark Star.

WCCO August 9th Interview with Dark Star

Also if this peaks your interest further, please check out this [url="http://www.myspace.com/allsportsmarket that includes more information as well as past PR and media tv clips.

I'm really interested to hear some constructive comments from all of you faithful RX members who either work in or spend a ton of time in the offshore gaming industry.

Thanks for your time, and I look forward to reading the responses.





Here is all the comment you need. The powers that be in Vegas, want something like this, BIG TIME. I am talking behind three closed doors, on a dark night type converstations, but I can assure you, an exchange or exchange type place, is exactly what we want to see.


I can speak for many on this one, but the only name you need to know on this one is Robert Walker the MGM/Mirage race and sportsbook director.



Two huge problems that can prevent this from occuring. One, the Bradly bill is a monster problem and two, post up for it all, is right on its heels, and is a huge problem to deal with.


When it comes to post up, no one wants to listen. Its a bigger problem than any will admit. All think thats the easy part, we can assure you differntly.
 

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Sugarbear,

Thanks very much for the information. Are you involved in the sports wagering business in Vegas?

I am not familiar with Robert Walker but I will definately be doing some follow up information on him. What I can tell you though is the company (ASM) has been lobbying congress in the state of VA for about 5-6 mos now, and making some tremendous progress.

The intent here is to relocate the business from CR to the US and one day pass legislation on creating this Global Sports Financial Exchange that the members of these behind closed door meetings are talking about. The first hurdle to overcome though is proving the concept of a sports derivative. If that can be accomplished the US will embrace this concept with open arms as it would instantly create a taxable revenue stream from many individuals who enjoy obtaining their entertainment value from sports 'investing' - and not wagering.

The next few weeks should be very interesting.
 

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Performance Based Sports Derivatives: A New Instrument

Good afternoon,

Please follow the link below to see a 10 min presentation by UCLA Economics PhD graduate Dr. Ozgit on the social and financial implications of regulating these perpetual financial instruments.

Dr. Ozgit Presentation

More information to come.. stay tuned!

 

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Peebs said:
Sugarbear,

Thanks very much for the information. Are you involved in the sports wagering business in Vegas?

I am not familiar with Robert Walker but I will definately be doing some follow up information on him. What I can tell you though is the company (ASM) has been lobbying congress in the state of VA for about 5-6 mos now, and making some tremendous progress.

The intent here is to relocate the business from CR to the US and one day pass legislation on creating this Global Sports Financial Exchange that the members of these behind closed door meetings are talking about. The first hurdle to overcome though is proving the concept of a sports derivative. If that can be accomplished the US will embrace this concept with open arms as it would instantly create a taxable revenue stream from many individuals who enjoy obtaining their entertainment value from sports 'investing' - and not wagering.

The next few weeks should be very interesting.





I am not involved in the books in Vegas, I just know what the right ones think.


You will have to figure out the post up problem, its the wrench all refuse to see. My advice, step back a second and see how those states deal with it first, with all the money that will be flying back and forth.


GOV made a huge mistake and its going to get ugly.
 

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Sugarbear,

The largest hurdle is in fact exactly what you state ... "Posting Up"

However, with the proper legal filing and possible acceptance of 'sports derivatives' as an OTC - derivative, the financial banking platfrom and ACH could be no different that posting up to E*trade or any other brokerage firm.

This is the direction that the company is heading towards, and I hope that the securities exemptions and reference to OTC derivatives in the Bill will assist the company in achieving this objective.

This novel concept could be just the thing that the US government needs to compensate for what will go down this week.

Regulating and Taxing the sale of sports derivatives on a derivatives market could attract some serious attention from sports and business tycoons.

As outlined in Dr. Ozgits video above, the hedging of risk for sports franchises could be a very beneficial outcome of a regulated exchange.

:103631605
 

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Sugarbear said:
I am gald someone understands Peebs. Keep me informed please.

I will indeed sugarbear.

One last little tidbit before I sign off for the night. ASM is in the final stages of granting a large publication in the US the exclusive media rights to breaking a story about its development and plan for the future in the coming weeks. No one knows exactly which magazine it will be, so when I know... I will let you know and the rest of theRX community.

Thanks for taking the time to respond to this thread, you input and advice is most welcomed.

Have a great night!

:howdy:
 

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Most people could not tell you what a parlay is. Even fewer a teaser. And now they are gonna buy sports derivatives. Give me a break. People will continue to wager online and with the local long before they'll be buying any derivatives.

Sean
 

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sean1 said:
Most people could not tell you what a parlay is. Even fewer a teaser. And now they are gonna buy sports derivatives. Give me a break. People will continue to wager online and with the local long before they'll be buying any derivatives.

Sean

Sean, I never said or think people will stop gambling. Gambling is inevitable, and a lot of local books will do very well once these laws and restrictions take place. This concept was never intended to replace traditional gambling, but rather serve as an alternative to the savvy sports enthusiast that has a fundamental knowelge of market based exchanges.

Rather, in my opinion this is a very novel concept with enormous potential from a government and societal perspective. I'm sorry, but I think the US government would love nothing more than to bring in yet another tax revenue stream, not to mention small market franchises looking for extra sources of income for anything from player salaries, to staidum sponsorships or even repairs and upgrades to infrastructure.

There are many financial instruments that could be created from these base derivatives.
 
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I may be out of line here, but anything remotely connected with the federal government, I am totally against.
 

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Forget the goverment. This is the truth.

Peebs said:
This concept was never intended to replace traditional gambling, but rather serve as an alternative to the savvy sports enthusiast that has a fundamental knowelge of market based exchanges.

Rather, in my opinion this is a very novel concept with enormous potential from a government and societal perspective. I'm sorry, but I think the US government would love nothing more than to bring in yet another tax revenue stream, not to mention small market franchises looking for extra sources of income for anything from player salaries, to staidum sponsorships or even repairs and upgrades to infrastructure.

There are many financial instruments that could be created from these base derivatives.





I do not pretend to understand derivatives, but I do understand the concept 100 percent. Anything that takes the middle man out and reduces exposure is the exact way to go. IT MAXIMIXES PROFITS AND minimizes losses. You SQUEEZE so much more out of every dollar. Once you have it up in the air and flowing to and fro, it rains money in incremental amounts, ALL THE TIME. From there you can project, invent and throw even more money up in the air, thus raining down even more money, ALL THE TIME.


It just grows and grows from there. See Pinnacle for furhter explanations.




The bigger half of this is that regulation is a game you play. The well heeled understand this concept 1000 percent. But, the "right people, with the "right" background have to present it and know how to "present" it.



Peebs has the background and the confidence. Corprate types will go for this and the only other hurdle in the form of the Bradly law can be quickly overcome.



All you need do is add a full juice, full service sportsbook to care of Joe - 110 whom is always only going to know that, will always get down late
and at the worst possible prices of the day. AKA, The icing on the cake.

See Pinnacle for futher instructions. It is the sum total of what they do.



I have fully stated professional opions out on MW that this is the future of the buisness and where things will be going. It is certainly the ones I can speak for want. And just think, I am just the guy at the bottom.



The question has been posed that did this law open the way for regulation? YES it most certainly DID.


See my expanded Betfair/Pinnacle model write up on MW. Under either the Why is Pinnacle is the best thread or the, Who will buy Pinnacle one.
 

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Utilizing a Regulated Global Sports Financial Exchange (GSFE)

Sugarbear said:
....
Peebs has the background and the confidence. Corprate types will go for this and the only other hurdle in the form of the Bradly law can be quickly overcome.
....
The question has been posed that did this law open the way for regulation? YES it most certainly DID.

Thank you for the kind words Sugarbear, but I must admit that although I have the utmost confidence in this idea, I too am still in a learning process regarding the concept of sports derivatives. After being a client for almost 2 years at ASM, and seeing how dedicated and persistent management has been regarding their vision; I truly hope this comes to fruition. What started as a simple P2P game of fantasy sports involving real $$$, has taken on a life of its own towards something much larger given the economic and political state of the gaming industry.

Its also very exciting to hear a casual observer not involved with ASM believe that the law did open the path to regulation. This is the exact sentiment that comes from the CEO and creator on an almost daily basis.

I want to leave everyone who takes the time to read this thread and follow through the links with the fololwing ways in which a regulated exchange could be used in the future.

The following excerpts were taken from Dr. Ozgits's presentation entitled: The First Global Sports Financial Exchange: Allsportsmarket.com (February 7th 2006)

Several agents and businesses are subject to performance risk
in sports. These include, but are not limited to:

Teams
Teams are subject to performance risk, because a significant
portion of the revenues come from ticket sales, concessions,
parking and merchandise sales. Although these variables may
not be perfectly correlated with team performance, the
relationship should be strong. As a result, teams themselves
may hedge that risk by investing on derivatives of their
competitors.

Sponsors
Why are sponsors subject to performance risk? Imagine a
powerful sports brand that teams up with an up-and-coming
tennis player. Brands usually pay huge amounts with the
expectation that the revenue stream from corresponding sales
will be higher than the costs. But the player may get injured,
banned from competition temporarily or perform poorly.
Therefore, the company may not be able to recoup its costs.
However, one can hedge this risk by buying up the field.

Gamblers
Gamblers are obviously subject to performance risk. ASM is
not gambling, yet it is attractive to gamblers, because it offers
an alternative, legal, platform, where gambling positions can be
combined with sports derivatives on ASM. In some instances,
arbitrage opportunities may also be present across markets.

TV channels
Consider the problem of a TV channel, who is contemplating a
bid for airing rights of a particular league. The benefits are all
the future revenues associated with that move (mostly
advertising). Assume an overall preference shift toward
different leagues is likely over time. This can be because of an
undesired finals match-up (Spurs-Pistons, 2005) or lack of
competitive balance. If a league becomes more popular for
whatever reason, there will me more trading on ASM, which in
turn, will increase the dividends and returns to that league. The
TV channel can hedge some of this risk by investing in an index
portfolio that tracks other leagues. Notice that this case is
slightly different because the relevant benchmark is not the
performance of a team but rather the performance of a league
as a whole.


 

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You have to change the lingo to fit the times. We need to talk. Its the right pitch, with the wrong wording.
 

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I will amened my statement.

Sugarbear said:
I do not pretend to understand derivatives, but I do understand the concept 100 percent. Anything that takes the middle man out and reduces exposure is the exact way to go. IT MAXIMIXES PROFITS AND minimizes losses. You SQUEEZE so much more out of every dollar. Once you have it up in the air and flowing to and fro, it rains money in incremental amounts, ALL THE TIME. From there you can project, invent and throw even more money up in the air, thus raining down even more money, ALL THE TIME.


It just grows and grows from there. See Pinnacle for furhter explanations.




What I should have said is see WSEX for further explanations. That is what this concept is. Sans the the word derivative, its what WSEX was founded on. Sounds the exact same.


JC and Company were 10 years ahead of there time. This law does indeed open up the way for this exact type of talking, to be taking place, in a lot of places.


The well heeled and educated understand it. They will be open to it. Its all about revenue streams. There is more than ASM out there, I am sure. The infrastructure for it is mostly in place as it stands right now.

It was in 96. NOBODY WOULD LISTEN.



For those whom are thinking what I am thinking, have a sick, sick, feeling in there stomachs. It really is completly unfair.
 

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Sugarbear said:
You have to change the lingo to fit the times. We need to talk. Its the right pitch, with the wrong wording.

Sugarbear,

I'd love to have a chat when you have some free time. Let me know what is the best way to get in touch?

I would be very interested to hear some of your thoughts regarding this idea, especially the lingo that would increase the likelihood of gaining the attention of the common joe.

Hope to hear from you soon.
 

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PR today

<TABLE cellSpacing=0 cellPadding=5 width="100%" bgColor=#ffffff border=0><TBODY><TR><TD width="3%"> </TD><TD vAlign=top><TABLE cellSpacing=0 cellPadding=5 border=0><TBODY><TR><TD align=right>Return to Release
</TD></TR><TR><TD>U.S. Online Gambling Ban "Cut Out" Stage for Future Battle With U.K.

U.S. Law Causing Turmoil for Illegal Online Gambling Industry Opens the Door for Battle Between European-Regulated Sports Betting and U.S.-Regulated Over-the-Counter Sports Market

</TD></TR><TR><TD>
NEW YORK, NY -- (MARKET WIRE) -- 11/06/2006 -- A year ago Wall Street heavyweights such as Fidelity, Merrill Lynch, Goldman Sachs and Morgan Stanley Securities invested over $388 million in the once promising and lucrative online gambling sector listed on the London Stock Exchange.

It was companies like PartyGaming PLC and its $8 billion IPO in 2005, the largest IPO in London's history, which blinded investors. But the promising Internet boom hid a dirty little secret. Online gambling had no legal footing for operating within the United States, where 60%-80% of all online gambling clients are said to reside.

Inevitably the gambling bonanza came to a crash. On October 13, 2006 President George Bush Jr. signed the Unlawful Internet Gambling Enforcement Act into law. The passing of this bill makes it illegal for financial institutions or payment processors to transact in dollars with unlawful Internet gambling providers. More than £4 billion ($7.6 billion) has been wiped off the London Stock Exchange since the signing of the bill.

The British government lashed out at the U.S. for hard lining against online gambling. Tessa Jowell, Britain's culture minister, said, "The industry has been very hard hit by the U.S. ban. The Internet is a global marketplace, and that's why we need action at the global level."
U.S. lawmakers said they passed the bill out of concern that Internet gambling would only serve to increase gambling addiction and social problems. U.S. Representative James Leach (R--Iowa) said, "Internet gambling has dangerous implications for families and society. It's also a front for money laundering and terrorism."

The British argue that online gambling should be regulated. But even in Europe where Britain, Italy and Belgium are leading the rally to regulate Internet gambling, the criminal dangers of gambling cannot be overlooked. Last week British police arrested a financial advisor who conned clients out of £2.3 million (nearly $5 million). The victims were mostly elderly whose life savings he used to feed his online gambling addiction. The U.S. could be seeking to prevent such dilemmas by using a different approach to the mixing of sports and money.
No one denies that mixing sports with money makes events more entertaining for fans, generates stadium attendance, and increases TV audience. The question has always been how to gain such benefits without putting people at risk. The development of a regulated investment platform based on sports may allow the U.S government to offer an answer.
Government-regulated sports investing gives athletic teams a chance to earn gains, while offering a responsible alternative to gambling. It provides tax relief, stimulates positive social reform, and promotes strong financial growth for U.S. markets. The path to regulated sports investing is found in Over-The-Counter Sports Derivatives. There is currently one company that is hoping to fit the bill for this project. AllSportsMarket, through its web portal AllSportsMarket.com, seeks to offer the United States and the world the very first Global Sports Financial Exchange.

AllSportsMarket President and C.E.O Chris Rabalais said, "AllSportsMarket.com is a Global Sports Financial Exchange (G.S.F.E.) continuously trading Performance Based Sports Derivatives on a global Internet browser based platform, loosely termed a Sports Stock Market. The Unlawful Internet Gambling Enforcement Act (H.R. 4954), signed into law on October 13, 2006, contains specific provisions for the legal operation of a Sports Derivatives exchange in the United States."

AllSportsMarket claims to be in communication with several teams and leagues in order to develop the kind of financial products that will best serve the individual traders and institutions involved with sports investing. Hockey legend and company spokesperson, Bernie Nicholls, recently commented on AllSportsMarket, "As an athlete I've found the ability to trade sports teams very appealing, when comparing trading a company on the NASDAQ or NYSE, which I know very little about. Investing into sports is twice as exciting. I believe anything that generates more revenue for professional sports will be wildly successful."
Mr. Rabalais said, "The sports industry is the only industry of its size, which has no defined mechanism for price discovery or risk hedging. Our Global Sports Financial Exchange ensures the accountability of nearly every dollar spent in the world of sports. We provide important data on price discovery in relationship to sports and offer an institutional service for risk hedging. Once we are fully regulated our instruments will also offer investment professionals, such as Hedge Fund managers, an investment arena that does not track with the bonds and stock markets."

There are those in the academic world who feel there is a place for such a market among all other relevant financial markets. Dr. Alper Ozgit, from UCLA Economics, recently did a study of AllSportsMarket and Sports Derivatives. He concluded that "AllSportsMarket offers a new financial instrument with an exotic underlying, namely sports performance. Sports Derivatives provide important social and economic benefits."

A former gambler who wished to only be identified as John said, " I had been gambling for about 40 years. It has been about a year (since I started sports trading) and I have not wagered on sporting events since. The thrill is gone. With the option of AllSportsMarket, I see myself never going back to gambling again."

Through financially sound strategy and socially responsible ethics, the G.S.F.E. (GSFEblog.com) feels it has created a sports investment platform that offers a healthy and secure alternative to sports gambling. Chris Rabalais and his team wish to achieve full U.S. regulatory compliance as on over-the-counter derivatives market by the middle of 2007. They plan on using the recent bill signing as a springboard to push their market into full view of the world. With a self-proclaimed trader-base of 13,000 traders in 115 countries and only two years of live market operation, they seem to have a good head start. But only the future will tell if the development of a sports investment vehicle will prove to be the wiser and safer choice over a regulated sports gambling environment.

However, one ideal does remain true, the mixing of sports and money should not be allowed to become a source of crime or be used to finance criminality. It should be used to offer consumers, institutions, and teams a chance for mutually beneficial gains.
About AllSportsMarket:

AllSportsMarket is an online financial exchange crafted after the same professional trading platform used by the gurus of Wall Street. Traders buy and sell issues in AllSportsMarket sports teams, players, and events with real money. Just like in the real markets, individuals are competing against other players for real cash, earning money from the rise and fall of prices along with dividend payouts. AllSportsMarket acts as a neutral clearing-house, moving profits and losses between the players and earning a broker commission on each transaction.

The AllSportsMarket market operates 24 hours a day, 365 days a year, and the AllSportsMarket support team is available 7 days a week to answer any questions. Individuals can trade as little or as often as they like. Prices change moment to moment so traders can monitor their personal portfolio in real time. For more information or to open an account, please visit http://allsportsmarket.com. <HR SIZE=1>
AccessTrackingLogServlet

PRESS CONTACT:Lisa KornblattSS|PR837-415-9330Email Contact</PRE>
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Source:
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