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Politics

Betting markets swing in favor of Gavin Newsom

California Governor Gavin Newsom makes a gesture as he speaks during a press conference at the San Bernardino Unified School District Office after attending Juanita B. Jones Elementary School in San Bernardino on Friday, August 6, 2021.

Watchara Phomicinda | MediaNews Group | Getty Images

The campaign to remove California Governor Gavin Newsom lost so much momentum over the past month that bettors are now saying the over 85% chance fails.

Political betting website PredictIt said the Democrats’ chances of staying in office after being dismissed on Sept. 14 reached their highest level since early July last week.

On Thursday, a bet on a successful recall (that is, a bet that Newsom would be ousted) on PredictIt cost 10 cents, up from 26 cents a week earlier and a high of 34 cents in early August. By Sunday the price had risen slightly to 14 cents.

Correct bets on PredictIt cash in at $ 1, so a 10 cents bet pays 90 cents should the recall prevail. The price of a bet in favor of a recall hasn’t closed below 10 cents since May 20, according to PredictIt. The low of the campaign a few days earlier was 8 cents in May.

Newsom and the Democratic Party have tried to make up ground as polls have shown the GOP to be more enthusiastic about voting in the recall, despite California being a reliably blue state. The California governor has had a boost from celebrities and high profile politicians like Senator Elizabeth Warren, D-Mass. Democrats are far more likely to return ballots than Republicans.

Vice President Kamala Harris, the former California attorney general and former US state senator, will be campaigning for Newsom this week. President Joe Biden, who is struggling with low poll numbers after a difficult military exit from Afghanistan and rising Covid-19 infections in large parts of the United States, has announced that he will campaign for Newsom.

The governor’s rosier outlook in recent days is reflected in the polls. FiveThirtyEight’s survey average shows Newsom 10.4 percentage points ahead of recall efforts (53% to 42.6%), down from 5.6 points at the end of August. A poll by the Public Policy Institute of California last week found that 58% of likely voters would vote against the recall.

Recall efforts gained momentum during the Covid pandemic, as critics expressed dissatisfaction with the state’s aggressive bans, school closings, and rising crime. Some corporations and wealthy technology managers and investors also left California and went to states with lower tax rates.

Newsom made a gift to its opponents in November. While the pandemic was still raging and stores were closed, photos emerged of an unmasked Newsom attending a party at the Napa Valley high-end French Laundry restaurant. By April of this year, the recall had garnered 1.6 million signatures, surpassing the number required to trigger an election.

Newsom supporters have been raising money lately and flooding the California airwaves to fend off the challenge. According to CALmatters, opponents of the recall raised $ 68.9 million, or six times as much as the pro-recall site.

If more than half of the voters say “yes” to the dismissal, the next governor will be the one of the 46 substitute candidates who receives the most votes in the second part of the ballot.

The betting markets don’t have much confidence in any of them.

Bets on Larry Elder, a conservative radio talk show host, have dropped from 25 cents on Aug. 24 to 13 cents. A bet on YouTube star and real estate entrepreneur Kevin Paffrath, who is running for Democrat, costs 4 cents compared to 13 cents in mid-August. None of the other candidates are over 1 cent.

A bet on Newsom to keep the gig dropped to just 68 cents in early August. It now sells for 89 cents.

SEE: California Governor Newsom is being recalled as organizers file signatures

Categories
Politics

A Tablet to Deal with Covid-19? The U.S. Is Betting on It.

The U.S. government spent more than $ 18 billion last year funding drug manufacturers to produce a Covid vaccine, an effort that resulted in at least five highly effective vaccinations in record time. Now, more than $ 3 billion is pouring into a neglected area of ​​research: developing pills to fight the virus at an early stage of infection that may save many lives in the years to come.

The new program, announced by the Ministry of Health on Thursday, will accelerate clinical trials of some promising drug candidates. If all goes well, some of those first pills could be ready by the end of the year. The Pandemic Antiviral Program will also support research into entirely new drugs – not just for the coronavirus, but for viruses that could cause future pandemics.

A number of other viruses, including influenza, HIV, and hepatitis C, can be treated with a simple pill. But despite more than a year of research, there isn’t a pill like this to treat someone with coronavirus infection before it wreaks havoc. Operation Warp Speed, the Trump administration’s program to accelerate Covid-19 research, has invested far more money in vaccine development than in treatments, a void the new program will seek to fill.

Dr. Anthony Fauci, the director of the National Institute of Allergies and Infectious Diseases and a key supporter of the program, said he was looking forward to a time when Covid-19 patients could pick up antiviral pills from a pharmacy once they test positive for that Coronavirus or develop Covid-19 symptoms.

“I wake up in the morning, I don’t feel very well, my sense of smell and taste goes away, I get a sore throat,” said Dr. Fauci in an interview. “I call my doctor and say, ‘I have Covid and I need a prescription.'”

Dr. Fauci’s support for antiviral pill research stems from his own experience fighting AIDS three decades ago. In the 1990s, his institute conducted research that led to some of the first antiviral pills for HIV, “protease inhibitors,” which can block an essential viral protein and keep the virus in check for life.

In the early 2000s, researchers found that an antiviral agent called sofosbuvir could cure hepatitis C nearly 100 percent of the time. Tamiflu, an over-the-counter influenza pill, can reduce recovery time from infection and reduce the chance that a flu attack will bring someone to the hospital.

At the beginning of the pandemic, researchers began testing existing antivirals in people hospitalized with severe Covid-19. But many of these studies showed no benefit from the antiviral drugs. In hindsight, the decision to work in hospitals was a mistake. Scientists now know that the best time to try to block the coronavirus is in the early days of the illness, when the virus is multiplying rapidly and the immune system has not yet built a defense.

Many people fight their infection and recover, but others have immune systems failing and starting to damage tissues instead of viruses. It is this self-inflicted damage that sends many people with Covid-19 to the hospital as the replication of the coronavirus wears off. So a drug that blocks replication early in an infection could very well fail in a study in patients who have advanced into later stages of the disease.

So far, only one antiviral has shown clear benefit for people in hospitals: remdesivir. Originally studied as a potential cure for Ebola, the drug appears to shorten the course of Covid-19 when given intravenously to patients. In October, it became the first – and so far only – antiviral drug to receive full FDA approval for the treatment of the disease.

However, remdesivir’s performance has overwhelmed many researchers. In November, the World Health Organization recommended not using the drug.

Remdesivir could work more effectively if people could take it earlier as a pill in the course of Covid-19. But in its approved formulation, the compound does not act orally. It cannot survive the passage from the mouth via the stomach to the circulatory system.

Researchers around the world are testing other antivirals that are already known to work in tablet form. One such compound called molnupiravir was developed by researchers at Emory University in 2019 and tested against viruses such as influenza and the Venezuelan equine encephalitis virus.

Working with Miami-based Ridgeback Biotherapeutics, the Emory team conducted experiments on mice that were so impressive that Merck turned to them to help bring the drug into human clinical trials for Covid-19.

“We found this molecule really amazing,” said Daria Hazuda, vice president of infectious diseases and vaccine research at Merck.

However, in a study of hospitalized patients, molnupiravir did not appear to have any effect on the disease. In April, the companies announced that they would end the process.

“I see that and I say, ‘Yes, no,'” said Dr. Tim Sheahan, a virologist at the University of North Carolina. “I’m not surprised that these types of drugs would not dramatically improve the outcome of a person who has been sick for several days.”

The companies started a second study last fall, this time testing the drug on people recently diagnosed with Covid-19. This study is ongoing and Merck is recruiting volunteers at higher risk of infection, such as the elderly with obesity and diabetes. Dr. Hazuda said the study should produce clear results by October.

Last year, government funding for Covid-19 treatments focused on a handful of candidates such as monoclonal antibodies and remdesivir. Many other antiviral drug studies have been small and underfunded. In January, the new government of Biden began developing a new program of antiviral pills.

The first results of this planning could be seen last week. The Department of Health and Human Services announced that it will purchase 1.7 million doses of molnupiravir from Merck for $ 1.2 billion, provided the current study leads to Food and Drug Administration approval. According to Dr. David Kessler, the chief science officer of the Biden government’s Covid-19 response team, the government could seek similar deals for two other antivirals in clinical trials.

The hope “is that by the end of the fall we will have an antiviral that can help us close this chapter of the epidemic,” said Dr. Kessler in an interview.

One of the drugs the government is considering is AT-527, which was developed by Atea Pharmaceuticals. The compound has already been shown to be safe and effective for treating hepatitis C, and early studies suggested it could work against Covid-19 as well. Roche has partnered with Atea to test it in humans, and the companies are currently conducting a late-stage clinical trial.

The other drug on government radar was developed by scientists at Pfizer, adapted from a molecule originally developed as a potential drug for SARS in the early 2000s. This drug was on the shelf for years, but last spring scientists decided to change its structure so that it works against the protease of the new coronavirus. More than 200 Pfizer researchers have teamed up to develop the molecule, initially known as PF-07321332.

The drug was intended for intravenous use, but Pfizer researchers managed to modify its structure so that it works as a pill. When the drug was given orally to mice, it reached a concentration high enough in the body to block the coronavirus. Pfizer started a clinical trial in March to evaluate its safety in humans and expects to move to a later stage of testing next month.

Dr. Kessler acknowledged that there will be challenges in using such pills to reduce hospital stays and deaths from Covid-19. People need access to the drugs once they test positive. “Your testing programs need to be linked to your treatment,” he said.

And if the history of antiviral research is any clue, the first drugs for Covid-19 will likely offer only modest benefits against the disease, said Dr. Fauci. But that would be a good start.

“With all of these drugs we’ve looked at over the years, we’ve never landed a home run the first time,” said Dr. Fauci. “A line drive from the left field wall to the start would be really good.”

The government will also spend up to $ 1.2 billion on research centers where scientists will conduct early-stage studies on drugs that block the coronavirus in other ways. Some drugs can interfere with other essential virus proteins, while others make it impossible to copy the virus’ genes.

Even if the next generation of pills won’t hit the market for a few years, many scientists say research will be a good investment. “It could help with this pandemic and potentially be a first line of defense for the next,” said Mark Namchuk, director of therapeutic translation at Harvard Medical School.

The program will not only support research into pills that work against coronaviruses, but also against other high-risk pathogens like flaviviruses, which cause diseases like dengue and West Nile fever, and togaviruses, the mosquito-borne diseases like chikungunya cause and Eastern equine encephalitis.

“There will always be a threat,” said Dr. Fauci. “I think there will be a long-term need for drugs.”

Categories
Business

On-line playing is sending sports activities betting ETFs to file highs

ETF players will double in online gambling and sports betting arena in 2021.

Betting interest has increased during the coronavirus pandemic, and a week after the Super Bowl LV, related ETFs are on a record run.

There are currently two main funds that offer centralized exposure to gaming and sports betting – the Roundhill Sports Betting & iGaming (BETZ) and the VanEck Vectors Gaming ETF (BJK). Both started last year and have quickly reached record highs.

BETZ in particular has increased by 96% since it was launched in early June.

VanEcks ETF offers a more traditional mix of casino stocks and gambling names – including Wynn Resorts and Las Vegas Sands – that have been hit by travel and leisure issues. BETZ is a worldwide pure game with digital gaming stocks like online bookmaker PointsBet, Canadian betting company Score Media and even a handful of SPACs that focus on sports betting technology and data providers.

Roundhill Sports Betting & iGaming ETF (BETZ) Top Holdings (% Weighting)
Related group 5.2%
PointsBet Holdings 4.8%
Penn National Gaming 4.5%
DraftKings 4.4%
Score Media and Gaming 4.2%

The BETZ fund has grown to more than $ 350 million in total assets under management in just seven months, and has posted inflows of $ 146 million so far this year.

Will Hershey, Co-Founder and CEO of Roundhill Investments, said the industry has been in hyper-growth mode (PASPA) since sports betting was legalized at the federal level in the US in 2018 with the repeal of the 1992 Professional and Amateur Sports Protection Act.

Record bets on Super Bowl weekend

It should come as no surprise that Super Bowl Sunday sparked an extra dose of intense betting activity. It’s the biggest betting day of the year for both Las Vegas sports betting and online betting shops – and it’s no different for the world of ETFs.

The numbers have grown from state to state, and the latest totals show that $ 444 million of regulated wagers were placed on the big game, with seven states still to report.

That’s already a total of $ 300 million last year and marks a record high or a bet on a single event. PlayUSA analysts expect the final balance sheet this year to top legal Super Bowl betting over $ 500 million – and that doesn’t include billions more coming in on black markets and unregulated sports books.

U.S. sports betting revenue is projected to reach $ 2.5 billion in 2021 and grow to $ 8 billion by 2025.

What is driving the rapid expansion? Hershey cites the ubiquitous shift from stationary to mobile and online services, as well as a major expansion of legalization across the country.

State legalization

More and more states like Tennessee and Virginia, which placed their first online sports betting in January, are getting online with legal sports betting.

“We expect the US market to mature and more states to go online. That will change and mean income for sports betting operators,” Hershey said on CNBC’s “ETF Edge” last week. “But perhaps more importantly, it will mean tax money for lawmakers.”

Sports betting has been legalized in some form in 21 states, including New Jersey, Nevada and Pennsylvania, and Washington, DC. However, some of the largest states – California, Florida, and Texas – have yet to follow.

Still, Hershey insists we are in the early stages of legalization and expects 10-12 more states to go online this year.

Kick-off for legalization

According to Hershey, it makes perfect sense for states to approve sports betting to fill the budget gap caused by the pandemic and generate additional tax revenue.

“I really think what is going on here, similar to what is going on in the cannabis industry, is that there are significant budget deficits at the state level, even at the state level,” Hershey said. “We’re just getting started. If we look at the opportunity for US markets [alone]We’re talking $ 20 billion to $ 30 billion in terms of the total addressable sports betting market. “

With the rapid rise of players like DraftKings and FanDuel, interest in sports betting has shifted dramatically from daily fantasy sports to live betting – but Hershey believes that most of the real money will continue to flow into online casinos, with sports books mostly the Drive customer acquisition.

A game of blackjack would still offer higher margins and much more predictable revenue than, say, this year’s Super Bowl, where Tom Brady and the Tampa Bay Buccaneers defense stunned sports fans by giving the Kansas City Chiefs a 31-9 blowout loss gifts.

“Who could have seen this coming?” Said Hershey. “You have to do that as sports betting. Live betting technology will be so advanced that we won’t even talk about the next 10 minutes, but rather whether the next field will be a curve or a fastball. I think this will be real monetization opportunities open when the technology gets to that point. “

Some skeptics may oppose the idea of ​​gambling online or buying more pot to balance the national budget, but Dave Nadig, director of research at ETF Trends, said he saw tax history as inevitable.

“Certainly the legalization of cannabis was a big part of it the demand for tax revenue at the state and local level,” he said in the same “ETF Edge” interview. “I think we will honestly see the same thing in anything we have previously regulated as a ‘sin activity’, such as gambling.”

Bottom line: when it comes to hot, lively topics associated with gamification trends, ETF investors are right there.

Disclosure: CNBC’s parent company Comcast and NBC Sports are investors in FanDuel.

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