The holidays are here and Christmas is only seven days away. That means last-minute shopping, gorging on holiday treats and watching your favorite seasonal films on repeat. One character you might very well see is Scut Farkus, the redheaded bully who tormented Ralphie in the holiday classic “A Christmas Story”. Interestingly enough, the actor who played the role is now speaking out against daily fantasy and is lobbying to create something of a legal sports stock market, where players can win real money and become educated on finance at the same time.
Actor Zack Ward is all grown up now, and has become affiliated with a site called All Sports Market (ASM), which wants to that is regulated like any other stock market.
How it works
“It’s a platform where you can buy and sell shares of the sports teams. Just like a regular stock, each team has a price. Each team also had a dividend reserve that is funded by a portion of the trading commissions. etoro Then, with each win, a portion of the losing team’s reserve is transferred to the winning team, and the shareholders receive a cash dividend. They also receive dividends on a quarterly basis (not based on game outcomes).”
The three Ps
He believes that daily fantasy is gambling and can have a potentially dangerous effect on society. He uses a framework he calls Price/Purpose/People in order to evaluate “whether a market is just a conduit for gambling or whether it benefits the public and deserves to be regulated as a financial market.”
He believes that DFS doesn’t pass the test because of the following factors:
- Price – there is no perpetual pricing
- Purpose – there is no greater purpose outside of entertainment only
- People – encourages people to “misbehave” by cheating and creates addiction
In a recent blog post, ASM somewhat confusingly posits that while players “like mixing sports and money,” that they don’t necessarily enjoy gambling. “People like speculating on company cash flows or the price of gold, too, and that can be done in a socially beneficial way through our financial markets,” the company said.
To support their claim that ASM is not gambling, the owners apply the aforementioned framework. They argue that its perpetual pricing plan will “help the networks, the media, the sports businesses… and all stakeholders” in the industry. They further state that people will not “misbehave at all, because they don’t have any incentive to,” and that the market will “create jobs, boost the economy, increased tax revenues and reform education.”
ASM was originally launched in Costa Rica, going live for real money in 2004. In 2007, the site’s user base had grown to 10,000, but the UIGEA put the brakes on the business and left the owners to consider how they could definitively legalize their model.
Since that time, the company says that it has moved its base from Costa Rica to California and has worked to improve the product while creating a nonprofit called The New Sports Economy Institute, through which it wants to facilitate its educational and social mission.
To achieve that goal, Zack Ward has introduced legislation called the Sports Integrity Protection Amendment (SIPA) in California, which would makes sports trading a basic citizen’s right.
“We know non-gambling sports markets exist, and here is one. But this can’t be the only one. Let California be the center of this movement, and let like-minded individuals and entrepreneurs join the movement,” Ward said. “There is one important condition, however. You must show value creation for society. Entertainment and profit for a few doesn’t cut it.”