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Lest the signal be lost amid the noise, we should now acknowledge one of the most decisive victories of the 2012 elections:
It was not on any ballot, but one of the biggest election contests this week pitted pundits against pollsters. It was a pitched battle between two self-assured rivals: those who relied on an unscientific mixture of experience, anecdotal details and “Spidey sense,” and those who stuck to cold, hard numbers.
When the results were tabulated, it became clear that data had bested divination.
The election results that delivered a second term to President Obama on Tuesday left some well-known pundits, many of whom have a partisan bent, eating crow on Wednesday morning — including analysts like Karl Rove, Dick Morris and Michael Barone, all of whom had confidently predicted a victory by Mitt Romney.
The results were much kinder to pollsters and the data devotees who aggregate and average polls, or who use mathematical models to make projections.
The triumph of polling over punditry was staggering in its scale. Nate Silver, author of 538 and The Signal and the Noise: Why So Many Predictions Fail — But Some Don't, ruled supreme. The following comparison of Silver's "538" model and actual vote tallies shows how the "king of the quants" nailed 50 states out of 50:
Those interested in winning future presidential elections — I'll even give the benefit of the doubt to a Republican Party that otherwise seems determined to commit demographic political suicide — might consider treating the Electoral College as a strategic game demanding simple combinatoric theory with detailed political data:
If this election settles just one thing, it should be the end of Karl Rove's political credibility. Alas, like the mirage of grand transformation in the Grand Old Party, not all that glitters in this quantitative age of Silver … is gold.
Casino magnate Sheldon Adelson bankrolled Republican candidates and causes in the 2012 election and rolled snake eyes. Recent legal developments may give this megadonor of the super-PAC era additional reason to worry: newfound competition from online gambling.
The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), 31 U.S.C. §§ 5361-5366, has been widely regarded as a legal firewall against online gambling. If banks can't process payments for games of chance, that business would face a formidable legal barrier. Moreover, as Judge Thomas Shadrick of Portsmouth, Va., has reasoned, games such as poker are games of chance notwithstanding the element of skill, because each hand's success depends on an irreducible random element.
The first crack in this legal edifice appeared in December 2011. Reversing its previous position, the Department of Justice issued a new opinion that the Interstate Wire Act of 1961, 18 U.S.C. § 1084, applies only to sports betting.
In August 2012, Judge Jack Weinstein of the U.S. District Court delivered an even more serious blow to the UIGEA/Wire Act edifice. Judge Weinstein reasoned that poker is a game of skill and therefore falls outside the scope of the UIGEA. Judge Weinstein cited Rogier Potter van Loon et al., Beyond Chance? The Persistence of Performance in Online Poker. That paper's central finding, based on a deep database of poker hands, is as follows:
A major issue in the widespread controversy about the legality of poker and the appropriate taxation of winnings is whether poker should be considered a game of skill or a game of chance. To inform this debate we present an analysis into the role of skill in the performance of online poker players, using a large database with hundreds of millions of player-hand observations from real money ring games at three different stakes levels. . . . Our results suggest that skill is an important factor in online poker.
If John Boehner fulfills his pledge to bring America back from the brink of the fiscal cliff, the lame duck Congress may turn its attention to the proposed Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2012. By offering individual states the ability to opt into permitting the processing of payments for online gambling, this bill may assign responsibility for resolving the legality of online gambling to individual states.
As if Sheldon Adelson and Karl Rove haven't already had a wretched month of November, Mr. Adelson's casino business faces a new phantom menace from online gambling and the big data that might tip the legal balance of power in the gaming industry.
The devastation that Hurricane Sandy brought to New York City and much of the Northeast -- in lost lives, lost homes and lost business -- brought the stakes of Tuesday’s presidential election into sharp relief.
The floods and fires that swept through our city left a path of destruction that will require years of recovery and rebuilding work. . . . In just 14 months, two hurricanes have forced us to evacuate neighborhoods -- something our city government had never done before. If this is a trend, it is simply not sustainable.
Our climate is changing. And while the increase in extreme weather we have experienced in New York City and around the world may or may not be the result of it, the risk that it might be -- given this week’s devastation -- should compel all elected leaders to take immediate action.