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Why a poker website is bigger than British Airways

Over in the UK, a poker site named PartyGaming is about to go public. No big shock there — except that if the company hits its expected first-day price, it will instantly be worth $10 billion, slightly less than Marks and Spencer, and more than British Airways and EMI put together. Why? Because in the last three years, its pretax profits have risen from from $5.8 million to $372 million, and it’s currently pulling in about $58,000 an hour. The business plan is simple: It lets people play poker together online, and shaves a tiny 1% off of each pot.

The company was founded by a woman who’d made her fortune in online porn, who hired a 25-year-old kid fresh out of an Indian comp-sci program to write her software. That’s surreal enough, but my favorite detail about the company, as reported in The Guardian, is this:

PartyGaming’s head office is in Gibraltar; its computer servers run from there and from Kahnawake, a Mohawk Indian reserve within Canada; its marketing office is in London but most of its 1,000 staff work in a call centre and software development site in Hyderabad, southern India.

Man alive. Porn, call-service-centers, Canadian Indian reserves — it’s like the wireframe model for a sci-fi novel cowritten by Cory Doctorow and Thomas Friedman.

As an unrelated aside, I wonder whether the rise of poker is a permanent new fixture in global culture, or a short-term bubble. I don’t actually play poker, and I don’t find it interesting to watch. But ludologically, I’m fascinated by the ascendance of games in today’s pop culture — a category that, judging by the popularity of poker, goes quite beyond videogames, and now includes competitive reality TV. Skill-based games have always been huge, of course; pro sports have been around for centuries. But the skills celebrated in today’s newly rising games aren’t about physical achievement so much as more about cunning, bluffing, and Victorian subterfuge — it’s like a world gladiatorial culture designed by Jane Austen.

(Thanks to F!LTER magazine for this one!)


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I'm Clive Thompson, a writer on science, technology, and culture. This blog collects bits of offbeat research I'm running into, and musings thereon.

Currently, I'm a contributing writer for the New York Times Magazine and a columnist for Wired magazine. I also write for Fast Company and Wired magazine's web site, among other places. Email or AOL IM me (pomeranian99) to say hi or send in something strange!

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September 26, 2008 » 01:57 PM

From an interview with ethnobotanist and anthropologist Wade Davis:

One of the cultures you celebrate in Light at the Edge of the World is the Inuit. What do you most admire about them?

Davis: The Inuit didn’t fear the cold; they took advantage of it. During the 1950s the Canadian government forced the Inuit into settlements. A family from Arctic Bay told me this fantastic story of their grandfather who refused to go. The family, fearful for his life, took away all of his tools and all of his implements, thinking that would force him into the settlement. But instead, he just slipped out of an igloo on a cold Arctic night, pulled down his caribou and sealskin trousers, and defecated into his hand. As the feces began to freeze, he shaped it into the form of an implement. And when the blade started to take shape, he put a spray of saliva along the leading edge to sharpen it. That’s when what they call the “shit knife” took form. He used it to butcher a dog. Skinned the dog with it. Improvised a sled with the dog’s rib cage, and then, using the skin, he harnessed up an adjacent living dog. He put the shit knife in his belt and disappeared into the night.

September 25, 2008 » 11:21 AM
“Video from a camp north of Toronto in December 2005 shows a car spinning around in a nearby, snow-covered parking lot. Prosecutors characterized that as special driver training but the defense, and many outsiders, said it was nothing more than “cutting doughnuts,” a favorite winter pastime of young Canadian motorists.” - A key piece of evidence submitted in the trial of a gang of alleged young Canadian terrorists.

September 24, 2008 » 11:21 PM
“Life imitates art imitating life: just thought a gnat crawling across my monitor was part of a Flash-based ad. I clicked it.” - A Tweet from Bill Braine.

September 24, 2008 » 02:37 PM
“Funniest FB friend request ever: “Twitter friend hoping to get to second base (Facebook!) ;-).”” - A recent Tweet by Pistachio

September 24, 2008 » 12:28 PM
Chinese powdered-milk crisis creates a new market: The return of the wet nurse

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