• Ah, the wonders of modern governance—where Big Tech asks for looser Clean Water Act permitting, and guess what? Trump is all ears! It’s almost as if the environmental regulations were just a suggestion, right? Who needs clean water when your data centers can run on pure ambition and a sprinkle of lobbyist charm? Meta, Google, and Amazon must be thrilled to know that their wish list is getting checked twice. Next on the agenda: perhaps they’ll lobby for a Clean Air Act amendment that lets them breathe easy while we hold our breaths. Cheers to progress!

    #BigTech #CleanWaterAct #Trump #EnvironmentalRegulations #Lobbying
    Ah, the wonders of modern governance—where Big Tech asks for looser Clean Water Act permitting, and guess what? Trump is all ears! It’s almost as if the environmental regulations were just a suggestion, right? Who needs clean water when your data centers can run on pure ambition and a sprinkle of lobbyist charm? Meta, Google, and Amazon must be thrilled to know that their wish list is getting checked twice. Next on the agenda: perhaps they’ll lobby for a Clean Air Act amendment that lets them breathe easy while we hold our breaths. Cheers to progress! #BigTech #CleanWaterAct #Trump #EnvironmentalRegulations #Lobbying
    Big Tech Asked for Looser Clean Water Act Permitting. Trump Wants to Give It to Them
    New AI regulations suggested by the White House mirror changes to environmental permitting suggested by Meta and a lobbying group representing firms like Google and Amazon Web Services.
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  • DOGE is thinking about cutting the free tax filing tool, Direct File, after meeting with some lobbyists. They initially said it would be safe, but now it’s on the chopping block. Not much excitement here, just another day in the world of tax tools and lobbyists.

    #DOGE #TaxFiling #DirectFile #Lobbyists #Boredom
    DOGE is thinking about cutting the free tax filing tool, Direct File, after meeting with some lobbyists. They initially said it would be safe, but now it’s on the chopping block. Not much excitement here, just another day in the world of tax tools and lobbyists. #DOGE #TaxFiling #DirectFile #Lobbyists #Boredom
    DOGE Put Free Tax Filing Tool on Chopping Block After One Meeting With Lobbyists
    A key operative from DOGE initiated plans to potentially kill Direct File, the free tax filing tool developed by the IRS, after offering assurances it would be spared from cuts.
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  • So, it seems the gaming world is back at it again with "Stop Killing Games" making headlines after a dramatic YouTube outburst. Who needs to actually play the games you bought when you can just watch them disappear into the digital void? Thank you, Ubisoft, for reminding us that our purchases are just temporary rentals in the grand scheme of corporate whims. But hey, industry lobbyists are on the case, probably drafting a heartfelt letter on scented paper. Maybe they'll even throw in some confetti for good measure! Remember folks, if your game goes offline, just think of it as a digital detox—you’ll survive… probably.

    #StopKillingGames #GamePreservation #UbisoftDrama #DigitalRights #GamingCommunity
    So, it seems the gaming world is back at it again with "Stop Killing Games" making headlines after a dramatic YouTube outburst. Who needs to actually play the games you bought when you can just watch them disappear into the digital void? Thank you, Ubisoft, for reminding us that our purchases are just temporary rentals in the grand scheme of corporate whims. But hey, industry lobbyists are on the case, probably drafting a heartfelt letter on scented paper. Maybe they'll even throw in some confetti for good measure! Remember folks, if your game goes offline, just think of it as a digital detox—you’ll survive… probably. #StopKillingGames #GamePreservation #UbisoftDrama #DigitalRights #GamingCommunity
    KOTAKU.COM
    'Stop Killing Games' Comes Roaring Back After YouTube Drama And Now Industry Lobbying Groups Are Pushing Back
    Last year, Ross Scott who runs the Accursed Farms YouTube channel posted a video about Ubisoft taking The Crew offline and not only making it unplayable for everyone who purchased it, but also revoking people’s digital copies. He used it to launch th
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  • Call of Duty bosses offer top gunplay tips for Ballerina movie fans in Black Ops 6

    Activision has included movie assassin Ballerina in the latest multiplayer version of Black Ops 6 and here they are exclusively offering Daily Star readers their top tips to become a gun heroTech17:04, 13 Jun 2025Ballerina in Call of DutyJohn Wick movie Ballerina has take over Call of Duty and the bods behind the game have given us some top tips on how to become the shooter king.The movie follows actress Ana de Armas as protagonist badass assassin Eve Macarro as she takes on all kinds of baddies alongside Keanu Reeve’s anti-hero John Wick.‌And to celebrate the silver screen success, Activision has included Eve, aka Ballerina, into Black Ops 6 as a playable online character cmplete with her own guns, finishing move and load screen as a downloadable add-on.‌But how can you, like Ana herself, become the star of mass destruction in the PS5 and Xbox game?The makers of Call of Duty have offered Daily Star readers these exclusive tips for online multiplayer mayhem in the game…Fire your guns as Ana de ArmasArticle continues belowEmbrace the Ruska Rogue : Don the "Ruska Rogue" Operator Skin for a sleek, black tactical look that screams stealth and deadly efficiency. Blend into the shadows and strike with calculated precision. You can adopt a minimalist, all-black approach to your loadout and Operator selection, channeling Wick's understated lethality. Remember, sometimes the most dangerous players are the ones you barely notice.Know Your Armoury : Equip the "Relevé" AK-74, "Plié" Saug, or "Arabesque" 9MM PM, all featuring High Table Coin Tracers and Death FX. Not only will you look good, but you'll also send a message: your enemies are just currency in your quest for victory . Aim for headshots to maximise your impact and conserve ammo. Use the AK-74 for mid-range engagements, the Saug for close-quarters dominance, and the 9MM PM as a reliable sidearm.‌Dance With Death, Literally: Master the "Dance With Death" Finishing Move. Nothing is more demoralising than eliminating an opponent with a graceful, yet brutal, execution. Use it strategically when you're sure you're safe from interruption. However, don't get caught up in the theatrics . Like Macarro, seek tactical reloads after every engagement, ensuring you're always ready for the next threat.Black Ops 6 has a fantastic multiplayer suite‌Pirouette to Victory : Utilise the "Pirouette" Emote to taunt your fallen foes. A well-timed pirouette can tilt the mental game in your favour, especially after a clutch play. But remember, survival is paramount . Know when to disengage and reposition, just like Ballerina. A tactical retreat can be just as effective as a head-on assault.Article continues belowCharm Your Way to the Top : Equip the "Keepsake" Weapon Charm as a reminder of your mission and to add a touch of personal flair to your weapon. Small details can make a big difference in your gameplay and standing in the lobby. Furthermore, master your weapon . An assassin knows the ins and outs of every firearm he or she uses. Practice with different weapons to find what suits your play style and become proficient with it.Know Your Role: Just like a ballerina needs to know their choreography, understand your role on the team. Are you the aggressive fragger, the objective player, or the support specialist? Tailor your loadout and play style to maximise your contribution to the team's success. Remember, even the most elegant ballerina needs a solid foundation. Use cover, listen for footsteps, and anticipate enemy movements. Situational awareness is key to survival.
    #call #duty #bosses #offer #top
    Call of Duty bosses offer top gunplay tips for Ballerina movie fans in Black Ops 6
    Activision has included movie assassin Ballerina in the latest multiplayer version of Black Ops 6 and here they are exclusively offering Daily Star readers their top tips to become a gun heroTech17:04, 13 Jun 2025Ballerina in Call of DutyJohn Wick movie Ballerina has take over Call of Duty and the bods behind the game have given us some top tips on how to become the shooter king.The movie follows actress Ana de Armas as protagonist badass assassin Eve Macarro as she takes on all kinds of baddies alongside Keanu Reeve’s anti-hero John Wick.‌And to celebrate the silver screen success, Activision has included Eve, aka Ballerina, into Black Ops 6 as a playable online character cmplete with her own guns, finishing move and load screen as a downloadable add-on.‌But how can you, like Ana herself, become the star of mass destruction in the PS5 and Xbox game?The makers of Call of Duty have offered Daily Star readers these exclusive tips for online multiplayer mayhem in the game…Fire your guns as Ana de ArmasArticle continues belowEmbrace the Ruska Rogue : Don the "Ruska Rogue" Operator Skin for a sleek, black tactical look that screams stealth and deadly efficiency. Blend into the shadows and strike with calculated precision. You can adopt a minimalist, all-black approach to your loadout and Operator selection, channeling Wick's understated lethality. Remember, sometimes the most dangerous players are the ones you barely notice.Know Your Armoury : Equip the "Relevé" AK-74, "Plié" Saug, or "Arabesque" 9MM PM, all featuring High Table Coin Tracers and Death FX. Not only will you look good, but you'll also send a message: your enemies are just currency in your quest for victory . Aim for headshots to maximise your impact and conserve ammo. Use the AK-74 for mid-range engagements, the Saug for close-quarters dominance, and the 9MM PM as a reliable sidearm.‌Dance With Death, Literally: Master the "Dance With Death" Finishing Move. Nothing is more demoralising than eliminating an opponent with a graceful, yet brutal, execution. Use it strategically when you're sure you're safe from interruption. However, don't get caught up in the theatrics . Like Macarro, seek tactical reloads after every engagement, ensuring you're always ready for the next threat.Black Ops 6 has a fantastic multiplayer suite‌Pirouette to Victory : Utilise the "Pirouette" Emote to taunt your fallen foes. A well-timed pirouette can tilt the mental game in your favour, especially after a clutch play. But remember, survival is paramount . Know when to disengage and reposition, just like Ballerina. A tactical retreat can be just as effective as a head-on assault.Article continues belowCharm Your Way to the Top : Equip the "Keepsake" Weapon Charm as a reminder of your mission and to add a touch of personal flair to your weapon. Small details can make a big difference in your gameplay and standing in the lobby. Furthermore, master your weapon . An assassin knows the ins and outs of every firearm he or she uses. Practice with different weapons to find what suits your play style and become proficient with it.Know Your Role: Just like a ballerina needs to know their choreography, understand your role on the team. Are you the aggressive fragger, the objective player, or the support specialist? Tailor your loadout and play style to maximise your contribution to the team's success. Remember, even the most elegant ballerina needs a solid foundation. Use cover, listen for footsteps, and anticipate enemy movements. Situational awareness is key to survival. #call #duty #bosses #offer #top
    WWW.DAILYSTAR.CO.UK
    Call of Duty bosses offer top gunplay tips for Ballerina movie fans in Black Ops 6
    Activision has included movie assassin Ballerina in the latest multiplayer version of Black Ops 6 and here they are exclusively offering Daily Star readers their top tips to become a gun heroTech17:04, 13 Jun 2025Ballerina in Call of DutyJohn Wick movie Ballerina has take over Call of Duty and the bods behind the game have given us some top tips on how to become the shooter king.The movie follows actress Ana de Armas as protagonist badass assassin Eve Macarro as she takes on all kinds of baddies alongside Keanu Reeve’s anti-hero John Wick.‌And to celebrate the silver screen success, Activision has included Eve, aka Ballerina, into Black Ops 6 as a playable online character cmplete with her own guns, finishing move and load screen as a downloadable add-on.‌But how can you, like Ana herself, become the star of mass destruction in the PS5 and Xbox game?The makers of Call of Duty have offered Daily Star readers these exclusive tips for online multiplayer mayhem in the game…Fire your guns as Ana de Armas(Image: Activision)Article continues belowEmbrace the Ruska Rogue : Don the "Ruska Rogue" Operator Skin for a sleek, black tactical look that screams stealth and deadly efficiency. Blend into the shadows and strike with calculated precision. You can adopt a minimalist, all-black approach to your loadout and Operator selection, channeling Wick's understated lethality. Remember, sometimes the most dangerous players are the ones you barely notice.Know Your Armoury : Equip the "Relevé" AK-74, "Plié" Saug, or "Arabesque" 9MM PM, all featuring High Table Coin Tracers and Death FX. Not only will you look good, but you'll also send a message: your enemies are just currency in your quest for victory . Aim for headshots to maximise your impact and conserve ammo. Use the AK-74 for mid-range engagements, the Saug for close-quarters dominance, and the 9MM PM as a reliable sidearm.‌Dance With Death, Literally (and Tactically Reload) : Master the "Dance With Death" Finishing Move. Nothing is more demoralising than eliminating an opponent with a graceful, yet brutal, execution. Use it strategically when you're sure you're safe from interruption. However, don't get caught up in the theatrics . Like Macarro, seek tactical reloads after every engagement, ensuring you're always ready for the next threat.Black Ops 6 has a fantastic multiplayer suite‌Pirouette to Victory : Utilise the "Pirouette" Emote to taunt your fallen foes (sparingly, of course!). A well-timed pirouette can tilt the mental game in your favour, especially after a clutch play. But remember, survival is paramount . Know when to disengage and reposition, just like Ballerina. A tactical retreat can be just as effective as a head-on assault.Article continues belowCharm Your Way to the Top : Equip the "Keepsake" Weapon Charm as a reminder of your mission and to add a touch of personal flair to your weapon. Small details can make a big difference in your gameplay and standing in the lobby. Furthermore, master your weapon . An assassin knows the ins and outs of every firearm he or she uses. Practice with different weapons to find what suits your play style and become proficient with it.Know Your Role (and Your Surroundings) : Just like a ballerina needs to know their choreography, understand your role on the team. Are you the aggressive fragger, the objective player, or the support specialist? Tailor your loadout and play style to maximise your contribution to the team's success. Remember, even the most elegant ballerina needs a solid foundation. Use cover, listen for footsteps, and anticipate enemy movements. Situational awareness is key to survival.
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  • Biofuels policy has been a failure for the climate, new report claims

    Fewer food crops

    Biofuels policy has been a failure for the climate, new report claims

    Report: An expansion of biofuels policy under Trump would lead to more greenhouse gas emissions.

    Georgina Gustin, Inside Climate News



    Jun 14, 2025 7:10 am

    |

    24

    An ethanol production plant on March 20, 2024 near Ravenna, Nebraska.

    Credit:

    David Madison/Getty Images

    An ethanol production plant on March 20, 2024 near Ravenna, Nebraska.

    Credit:

    David Madison/Getty Images

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    This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy, and the environment. Sign up for their newsletter here.
    The American Midwest is home to some of the richest, most productive farmland in the world, enabling its transformation into a vast corn- and soy-producing machine—a conversion spurred largely by decades-long policies that support the production of biofuels.
    But a new report takes a big swing at the ethanol orthodoxy of American agriculture, criticizing the industry for causing economic and social imbalances across rural communities and saying that the expansion of biofuels will increase greenhouse gas emissions, despite their purported climate benefits.
    The report, from the World Resources Institute, which has been critical of US biofuel policy in the past, draws from 100 academic studies on biofuel impacts. It concludes that ethanol policy has been largely a failure and ought to be reconsidered, especially as the world needs more land to produce food to meet growing demand.
    “Multiple studies show that US biofuel policies have reshaped crop production, displacing food crops and driving up emissions from land conversion, tillage, and fertilizer use,” said the report’s lead author, Haley Leslie-Bole. “Corn-based ethanol, in particular, has contributed to nutrient runoff, degraded water quality and harmed wildlife habitat. As climate pressures grow, increasing irrigation and refining for first-gen biofuels could deepen water scarcity in already drought-prone parts of the Midwest.”
    The conversion of Midwestern agricultural land has been sweeping. Between 2004 and 2024, ethanol production increased by nearly 500 percent. Corn and soybeans are now grown on 92 and 86 million acres of land respectively—and roughly a third of those crops go to produce ethanol. That means about 30 million acres of land that could be used to grow food crops are instead being used to produce ethanol, despite ethanol only accounting for 6 percent of the country’s transportation fuel.

    The biofuels industry—which includes refiners, corn and soy growers and the influential agriculture lobby writ large—has long insisted that corn- and soy-based biofuels provide an energy-efficient alternative to fossil-based fuels. Congress and the US Department of Agriculture have agreed.
    The country’s primary biofuels policy, the Renewable Fuel Standard, requires that biofuels provide a greenhouse gas reduction over fossil fuels: The law says that ethanol from new plants must deliver a 20 percent reduction in greenhouse gas emissions compared to gasoline.
    In addition to greenhouse gas reductions, the industry and its allies in Congress have also continued to say that ethanol is a primary mainstay of the rural economy, benefiting communities across the Midwest.
    But a growing body of research—much of which the industry has tried to debunk and deride—suggests that ethanol actually may not provide the benefits that policies require. It may, in fact, produce more greenhouse gases than the fossil fuels it was intended to replace. Recent research says that biofuel refiners also emit significant amounts of carcinogenic and dangerous substances, including hexane and formaldehyde, in greater amounts than petroleum refineries.
    The new report points to research saying that increased production of biofuels from corn and soy could actually raise greenhouse gas emissions, largely from carbon emissions linked to clearing land in other countries to compensate for the use of land in the Midwest.
    On top of that, corn is an especially fertilizer-hungry crop requiring large amounts of nitrogen-based fertilizer, which releases huge amounts of nitrous oxide when it interacts with the soil. American farming is, by far, the largest source of domestic nitrous oxide emissions already—about 50 percent. If biofuel policies lead to expanded production, emissions of this enormously powerful greenhouse gas will likely increase, too.

    The new report concludes that not only will the expansion of ethanol increase greenhouse gas emissions, but it has also failed to provide the social and financial benefits to Midwestern communities that lawmakers and the industry say it has.“The benefits from biofuels remain concentrated in the hands of a few,” Leslie-Bole said. “As subsidies flow, so may the trend of farmland consolidation, increasing inaccessibility of farmland in the Midwest, and locking out emerging or low-resource farmers. This means the benefits of biofuels production are flowing to fewer people, while more are left bearing the costs.”
    New policies being considered in state legislatures and Congress, including additional tax credits and support for biofuel-based aviation fuel, could expand production, potentially causing more land conversion and greenhouse gas emissions, widening the gap between the rural communities and rich agribusinesses at a time when food demand is climbing and, critics say, land should be used to grow food instead.
    President Donald Trump’s tax cut bill, passed by the House and currently being negotiated in the Senate, would not only extend tax credits for biofuels producers, it specifically excludes calculations of emissions from land conversion when determining what qualifies as a low-emission fuel.
    The primary biofuels industry trade groups, including Growth Energy and the Renewable Fuels Association, did not respond to Inside Climate News requests for comment or interviews.
    An employee with the Clean Fuels Alliance America, which represents biodiesel and sustainable aviation fuel producers, not ethanol, said the report vastly overstates the carbon emissions from crop-based fuels by comparing the farmed land to natural landscapes, which no longer exist.
    They also noted that the impact of soy-based fuels in 2024 was more than billion, providing over 100,000 jobs.
    “Ten percent of the value of every bushel of soybeans is linked to biomass-based fuel,” they said.

    Georgina Gustin, Inside Climate News

    24 Comments
    #biofuels #policy #has #been #failure
    Biofuels policy has been a failure for the climate, new report claims
    Fewer food crops Biofuels policy has been a failure for the climate, new report claims Report: An expansion of biofuels policy under Trump would lead to more greenhouse gas emissions. Georgina Gustin, Inside Climate News – Jun 14, 2025 7:10 am | 24 An ethanol production plant on March 20, 2024 near Ravenna, Nebraska. Credit: David Madison/Getty Images An ethanol production plant on March 20, 2024 near Ravenna, Nebraska. Credit: David Madison/Getty Images Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy, and the environment. Sign up for their newsletter here. The American Midwest is home to some of the richest, most productive farmland in the world, enabling its transformation into a vast corn- and soy-producing machine—a conversion spurred largely by decades-long policies that support the production of biofuels. But a new report takes a big swing at the ethanol orthodoxy of American agriculture, criticizing the industry for causing economic and social imbalances across rural communities and saying that the expansion of biofuels will increase greenhouse gas emissions, despite their purported climate benefits. The report, from the World Resources Institute, which has been critical of US biofuel policy in the past, draws from 100 academic studies on biofuel impacts. It concludes that ethanol policy has been largely a failure and ought to be reconsidered, especially as the world needs more land to produce food to meet growing demand. “Multiple studies show that US biofuel policies have reshaped crop production, displacing food crops and driving up emissions from land conversion, tillage, and fertilizer use,” said the report’s lead author, Haley Leslie-Bole. “Corn-based ethanol, in particular, has contributed to nutrient runoff, degraded water quality and harmed wildlife habitat. As climate pressures grow, increasing irrigation and refining for first-gen biofuels could deepen water scarcity in already drought-prone parts of the Midwest.” The conversion of Midwestern agricultural land has been sweeping. Between 2004 and 2024, ethanol production increased by nearly 500 percent. Corn and soybeans are now grown on 92 and 86 million acres of land respectively—and roughly a third of those crops go to produce ethanol. That means about 30 million acres of land that could be used to grow food crops are instead being used to produce ethanol, despite ethanol only accounting for 6 percent of the country’s transportation fuel. The biofuels industry—which includes refiners, corn and soy growers and the influential agriculture lobby writ large—has long insisted that corn- and soy-based biofuels provide an energy-efficient alternative to fossil-based fuels. Congress and the US Department of Agriculture have agreed. The country’s primary biofuels policy, the Renewable Fuel Standard, requires that biofuels provide a greenhouse gas reduction over fossil fuels: The law says that ethanol from new plants must deliver a 20 percent reduction in greenhouse gas emissions compared to gasoline. In addition to greenhouse gas reductions, the industry and its allies in Congress have also continued to say that ethanol is a primary mainstay of the rural economy, benefiting communities across the Midwest. But a growing body of research—much of which the industry has tried to debunk and deride—suggests that ethanol actually may not provide the benefits that policies require. It may, in fact, produce more greenhouse gases than the fossil fuels it was intended to replace. Recent research says that biofuel refiners also emit significant amounts of carcinogenic and dangerous substances, including hexane and formaldehyde, in greater amounts than petroleum refineries. The new report points to research saying that increased production of biofuels from corn and soy could actually raise greenhouse gas emissions, largely from carbon emissions linked to clearing land in other countries to compensate for the use of land in the Midwest. On top of that, corn is an especially fertilizer-hungry crop requiring large amounts of nitrogen-based fertilizer, which releases huge amounts of nitrous oxide when it interacts with the soil. American farming is, by far, the largest source of domestic nitrous oxide emissions already—about 50 percent. If biofuel policies lead to expanded production, emissions of this enormously powerful greenhouse gas will likely increase, too. The new report concludes that not only will the expansion of ethanol increase greenhouse gas emissions, but it has also failed to provide the social and financial benefits to Midwestern communities that lawmakers and the industry say it has.“The benefits from biofuels remain concentrated in the hands of a few,” Leslie-Bole said. “As subsidies flow, so may the trend of farmland consolidation, increasing inaccessibility of farmland in the Midwest, and locking out emerging or low-resource farmers. This means the benefits of biofuels production are flowing to fewer people, while more are left bearing the costs.” New policies being considered in state legislatures and Congress, including additional tax credits and support for biofuel-based aviation fuel, could expand production, potentially causing more land conversion and greenhouse gas emissions, widening the gap between the rural communities and rich agribusinesses at a time when food demand is climbing and, critics say, land should be used to grow food instead. President Donald Trump’s tax cut bill, passed by the House and currently being negotiated in the Senate, would not only extend tax credits for biofuels producers, it specifically excludes calculations of emissions from land conversion when determining what qualifies as a low-emission fuel. The primary biofuels industry trade groups, including Growth Energy and the Renewable Fuels Association, did not respond to Inside Climate News requests for comment or interviews. An employee with the Clean Fuels Alliance America, which represents biodiesel and sustainable aviation fuel producers, not ethanol, said the report vastly overstates the carbon emissions from crop-based fuels by comparing the farmed land to natural landscapes, which no longer exist. They also noted that the impact of soy-based fuels in 2024 was more than billion, providing over 100,000 jobs. “Ten percent of the value of every bushel of soybeans is linked to biomass-based fuel,” they said. Georgina Gustin, Inside Climate News 24 Comments #biofuels #policy #has #been #failure
    ARSTECHNICA.COM
    Biofuels policy has been a failure for the climate, new report claims
    Fewer food crops Biofuels policy has been a failure for the climate, new report claims Report: An expansion of biofuels policy under Trump would lead to more greenhouse gas emissions. Georgina Gustin, Inside Climate News – Jun 14, 2025 7:10 am | 24 An ethanol production plant on March 20, 2024 near Ravenna, Nebraska. Credit: David Madison/Getty Images An ethanol production plant on March 20, 2024 near Ravenna, Nebraska. Credit: David Madison/Getty Images Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy, and the environment. Sign up for their newsletter here. The American Midwest is home to some of the richest, most productive farmland in the world, enabling its transformation into a vast corn- and soy-producing machine—a conversion spurred largely by decades-long policies that support the production of biofuels. But a new report takes a big swing at the ethanol orthodoxy of American agriculture, criticizing the industry for causing economic and social imbalances across rural communities and saying that the expansion of biofuels will increase greenhouse gas emissions, despite their purported climate benefits. The report, from the World Resources Institute, which has been critical of US biofuel policy in the past, draws from 100 academic studies on biofuel impacts. It concludes that ethanol policy has been largely a failure and ought to be reconsidered, especially as the world needs more land to produce food to meet growing demand. “Multiple studies show that US biofuel policies have reshaped crop production, displacing food crops and driving up emissions from land conversion, tillage, and fertilizer use,” said the report’s lead author, Haley Leslie-Bole. “Corn-based ethanol, in particular, has contributed to nutrient runoff, degraded water quality and harmed wildlife habitat. As climate pressures grow, increasing irrigation and refining for first-gen biofuels could deepen water scarcity in already drought-prone parts of the Midwest.” The conversion of Midwestern agricultural land has been sweeping. Between 2004 and 2024, ethanol production increased by nearly 500 percent. Corn and soybeans are now grown on 92 and 86 million acres of land respectively—and roughly a third of those crops go to produce ethanol. That means about 30 million acres of land that could be used to grow food crops are instead being used to produce ethanol, despite ethanol only accounting for 6 percent of the country’s transportation fuel. The biofuels industry—which includes refiners, corn and soy growers and the influential agriculture lobby writ large—has long insisted that corn- and soy-based biofuels provide an energy-efficient alternative to fossil-based fuels. Congress and the US Department of Agriculture have agreed. The country’s primary biofuels policy, the Renewable Fuel Standard, requires that biofuels provide a greenhouse gas reduction over fossil fuels: The law says that ethanol from new plants must deliver a 20 percent reduction in greenhouse gas emissions compared to gasoline. In addition to greenhouse gas reductions, the industry and its allies in Congress have also continued to say that ethanol is a primary mainstay of the rural economy, benefiting communities across the Midwest. But a growing body of research—much of which the industry has tried to debunk and deride—suggests that ethanol actually may not provide the benefits that policies require. It may, in fact, produce more greenhouse gases than the fossil fuels it was intended to replace. Recent research says that biofuel refiners also emit significant amounts of carcinogenic and dangerous substances, including hexane and formaldehyde, in greater amounts than petroleum refineries. The new report points to research saying that increased production of biofuels from corn and soy could actually raise greenhouse gas emissions, largely from carbon emissions linked to clearing land in other countries to compensate for the use of land in the Midwest. On top of that, corn is an especially fertilizer-hungry crop requiring large amounts of nitrogen-based fertilizer, which releases huge amounts of nitrous oxide when it interacts with the soil. American farming is, by far, the largest source of domestic nitrous oxide emissions already—about 50 percent. If biofuel policies lead to expanded production, emissions of this enormously powerful greenhouse gas will likely increase, too. The new report concludes that not only will the expansion of ethanol increase greenhouse gas emissions, but it has also failed to provide the social and financial benefits to Midwestern communities that lawmakers and the industry say it has. (The report defines the Midwest as Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.) “The benefits from biofuels remain concentrated in the hands of a few,” Leslie-Bole said. “As subsidies flow, so may the trend of farmland consolidation, increasing inaccessibility of farmland in the Midwest, and locking out emerging or low-resource farmers. This means the benefits of biofuels production are flowing to fewer people, while more are left bearing the costs.” New policies being considered in state legislatures and Congress, including additional tax credits and support for biofuel-based aviation fuel, could expand production, potentially causing more land conversion and greenhouse gas emissions, widening the gap between the rural communities and rich agribusinesses at a time when food demand is climbing and, critics say, land should be used to grow food instead. President Donald Trump’s tax cut bill, passed by the House and currently being negotiated in the Senate, would not only extend tax credits for biofuels producers, it specifically excludes calculations of emissions from land conversion when determining what qualifies as a low-emission fuel. The primary biofuels industry trade groups, including Growth Energy and the Renewable Fuels Association, did not respond to Inside Climate News requests for comment or interviews. An employee with the Clean Fuels Alliance America, which represents biodiesel and sustainable aviation fuel producers, not ethanol, said the report vastly overstates the carbon emissions from crop-based fuels by comparing the farmed land to natural landscapes, which no longer exist. They also noted that the impact of soy-based fuels in 2024 was more than $42 billion, providing over 100,000 jobs. “Ten percent of the value of every bushel of soybeans is linked to biomass-based fuel,” they said. Georgina Gustin, Inside Climate News 24 Comments
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  • The Invisible Visual Effects Secrets of ‘Severance’ with ILM’s Eric Leven

    ILM teams with Ben Stiller and Apple TV+ to bring thousands of seamless visual effects shots to the hit drama’s second season.
    By Clayton Sandell
    There are mysterious and important secrets to be uncovered in the second season of the wildly popular Apple TV+ series Severance.
    About 3,500 of them are hiding in plain sight.
    That’s roughly the number of visual effects shots helping tell the Severance story over 10 gripping episodes in the latest season, a collaborative effort led by Industrial Light & Magic.
    ILM’s Eric Leven served as the Severance season two production visual effects supervisor. We asked him to help pull back the curtain on some of the show’s impressive digital artistry that most viewers will probably never notice.
    “This is the first show I’ve ever done where it’s nothing but invisible effects,” Leven tells ILM.com. “It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.”
    With so many season two shots to choose from, Leven helped us narrow down a list of his favorite visual effects sequences to five.Before we dig in, a word of caution. This article contains plot spoilers for Severance.Severance tells the story of Mark Scout, department chief of the secretive Severed Floor located in the basement level of Lumon Industries, a multinational biotech corporation. Mark S., as he’s known to his co-workers, heads up Macrodata Refinement, a department where employees help categorize numbers without knowing the true purpose of their work. 
    Mark and his team – Helly R., Dylan G., and Irving B., have all undergone a surgical procedure to “sever” their personal lives from their work lives. The chip embedded in their brains effectively creates two personalities that are sometimes at odds: an “Innie” during Lumon office hours and an “Outie” at home.
    “This is the first show I’ve ever done where it’s nothing but invisible effects. It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.”Eric Leven
    1. The Running ManThe season one finale ends on a major cliffhanger. Mark S. learns that his Outie’s wife, Gemma – believed killed in a car crash years ago – is actually alive somewhere inside the Lumon complex. Season two opens with Mark S. arriving at the Severed Floor in a desperate search for Gemma, who he only knows as her Innie persona, Ms. Casey.
    The fast-paced sequence is designed to look like a single, two-minute shot. It begins with the camera making a series of rapid and elaborate moves around a frantic Mark S. as he steps out of the elevator, into the Severed Floor lobby, and begins running through the hallways.
    “The nice thing about that sequence was that everyone knew it was going to be difficult and challenging,” Leven says, adding that executive producer and Episode 201 director, Ben Stiller, began by mapping out the hallway run with his team. Leven recommended that a previsualization sequence – provided by The Third Floor – would help the filmmakers refine their plan before cameras rolled.
    “While prevising it, we didn’t worry about how we would actually photograph anything. It was just, ‘These are the visuals we want to capture,’” Leven says. “‘What does it look like for this guy to run down this hallway for two minutes? We’ll figure out how to shoot it later.’”
    The previs process helped determine how best to shoot the sequence, and also informed which parts of the soundstage set would have to be digitally replaced. The first shot was captured by a camera mounted on a Bolt X Cinebot motion-control arm provided by The Garage production company. The size of the motion-control setup, however, meant it could not fit in the confined space of an elevator or the existing hallways.
    “We couldn’t actually shoot in the elevator,” Leven says. “The whole elevator section of the set was removed and was replaced with computer graphics.” In addition to the elevator, ILM artists replaced portions of the floor, furniture, and an entire lobby wall, even adding a reflection of Adam Scott into the elevator doors.
    As Scott begins running, he’s picked up by a second camera mounted on a more compact, stabilized gimbal that allows the operator to quickly run behind and sometimes in front of the actor as he darts down different hallways. ILM seamlessly combined the first two Mark S. plates in a 2D composite.
    “Part of that is the magic of the artists at ILM who are doing that blend. But I have to give credit to Adam Scott because he ran the same way in both cameras without really being instructed,” says Leven. “Lucky for us, he led with the same foot. He used the same arm. I remember seeing it on the set, and I did a quick-and-dirty blend right there and thought, ‘Oh my gosh, this is going to work.’ So it was really nice.”
    The action continues at a frenetic pace, ultimately combining ten different shots to complete the sequence.
    “We didn’t want the very standard sleight of hand that you’ve seen a lot where you do a wipe across the white hallway,” Leven explains. “We tried to vary that as much as possible because we didn’t want to give away the gag. So, there are times when the camera will wipe across a hallway, and it’s not a computer graphics wipe. We’d hide the wipe somewhere else.”
    A slightly more complicated illusion comes as the camera sweeps around Mark S. from back to front as he barrels down another long hallway. “There was no way to get the camera to spin around Mark while he is running because there’s physically not enough room for the camera there,” says Leven.
    To capture the shot, Adam Scott ran on a treadmill placed on a green screen stage as the camera maneuvered around him. At that point, the entire hallway environment is made with computer graphics. Artists even added a few extra frames of the actor to help connect one shot to the next, selling the illusion of a single continuous take. “We painted in a bit of Adam Scott running around the corner. So if you freeze and look through it, you’ll see a bit of his heel. He never completely clears the frame,” Leven points out.
    Leven says ILM also provided Ben Stiller with options when it came to digitally changing up the look of Lumon’s sterile hallways: sometimes adding extra doors, vents, or even switching door handles. “I think Ben was very excited about having this opportunity,” says Leven. “He had never had a complete, fully computer graphics version of these hallways before. And now he was able to do things that he was never able to do in season one.”.
    2. Let it SnowThe MDR team – Mark, Helly, Dylan, and Irving – unexpectedly find themselves in the snowy wilderness as part of a two-day Lumon Outdoor Retreat and Team-Building Occurrence, or ORTBO. 
    Exterior scenes were shot on location at Minnewaska State Park Preserve in New York. Throughout the ORTBO sequence, ILM performed substantial environment enhancements, making trees and landscapes appear far snowier than they were during the shoot. “It’s really nice to get the actors out there in the cold and see their breath,” Leven says. “It just wasn’t snowy during the shoot. Nearly every exterior shot was either replaced or enhanced with snow.”
    For a shot of Irving standing on a vast frozen lake, for example, virtually every element in the location plate – including an unfrozen lake, mountains, and trees behind actor John Turturro – was swapped out for a CG environment. Wide shots of a steep, rocky wall Irving must scale to reach his co-workers were also completely digital.
    Eventually, the MDR team discovers a waterfall that marks their arrival at a place called Woe’s Hollow. The location – the state park’s real-life Awosting Falls – also got extensive winter upgrades from ILM, including much more snow covering the ground and trees, an ice-covered pond, and hundreds of icicles clinging to the rocky walls. “To make it fit in the world of Severance, there’s a ton of work that has to happen,” Leven tells ILM.com..
    3. Welcome to LumonThe historic Bell Labs office complex, now known as Bell Works in Holmdel Township, New Jersey, stands in as the fictional Lumon Industries headquarters building.
    Exterior shots often underwent a significant digital metamorphosis, with artists transforming areas of green grass into snow-covered terrain, inserting a CG water tower, and rendering hundreds of 1980s-era cars to fill the parking lot.
    “We’re always adding cars, we’re always adding snow. We’re changing, subtly, the shape and the layout of the design,” says Leven. “We’re seeing new angles that we’ve never seen before. On the roof of Lumon, for example, the air conditioning units are specifically designed and created with computer graphics.”
    In real life, the complex is surrounded by dozens of houses, requiring the digital erasure of entire neighborhoods. “All of that is taken out,” Leven explains. “CG trees are put in, and new mountains are put in the background.”
    Episodes 202 and 203 feature several night scenes shot from outside the building looking in. In one sequence, a camera drone flying outside captured a long tracking shot of Helena Eaganmaking her way down a glass-enclosed walkway. The building’s atrium can be seen behind her, complete with a massive wall sculpture depicting company founder Kier Eagan.
    “We had to put the Kier sculpture in with the special lighting,” Leven reveals. “The entire atrium was computer graphics.” Artists completed the shot by adding CG reflections of the snowy parking lot to the side of the highly reflective building.
    “We have to replace what’s in the reflections because the real reflection is a parking lot with no snow or a parking lot with no cars,” explains Leven. “We’re often replacing all kinds of stuff that you wouldn’t think would need to be replaced.”
    Another nighttime scene shot from outside the building features Helena in a conference room overlooking the Lumon parking lot, which sits empty except for Mr. Milchickriding in on his motorcycle.
    “The top story, where she is standing, was practical,” says Leven, noting the shot was also captured using a drone hovering outside the window. “The second story below her was all computer graphics. Everything other than the building is computer graphics. They did shoot a motorcycle on location, getting as much practical reference as possible, but then it had to be digitally replaced after the fact to make it work with the rest of the shot.”.
    4. Time in MotionEpisode seven reveals that MDR’s progress is being monitored by four dopplegang-ish observers in a control room one floor below, revealed via a complex move that has the camera traveling downward through a mass of data cables.
    “They built an oversize cable run, and they shot with small probe lenses. Visual effects helped by blending several plates together,” explains Leven. “It was a collaboration between many different departments, which was really nice. Visual effects helped with stuff that just couldn’t be shot for real. For example, when the camera exits the thin holes of the metal grate at the bottom of the floor, that grate is computer graphics.”
    The sequence continues with a sweeping motion-control time-lapse shot that travels around the control-room observers in a spiral pattern, a feat pulled off with an ingenious mix of technical innovation and old-school sleight of hand.
    A previs sequence from The Third Floor laid out the camera move, but because the Bolt arm motion-control rig could only travel on a straight track and cover roughly one-quarter of the required distance, The Garage came up with a way to break the shot into multiple passes. The passes would later be stitched together into one seemingly uninterrupted movement.
    The symmetrical set design – including the four identical workstations – helped complete the illusion, along with a clever solution that kept the four actors in the correct position relative to the camera.
    “The camera would basically get to the end of the track,” Leven explains. “Then everybody would switch positions 90 degrees. Everyone would get out of their chairs and move. The camera would go back to one, and it would look like one continuous move around in a circle because the room is perfectly symmetrical, and everything in it is perfectly symmetrical. We were able to move the actors, and it looks like the camera was going all the way around the room.”
    The final motion-control move switches from time-lapse back to real time as the camera passes by a workstation and reveals Mr. Drummondand Dr. Mauerstanding behind it. Leven notes that each pass was completed with just one take.
    5. Mark vs. MarkThe Severance season two finale begins with an increasingly tense conversation between Innie Mark and Outie Mark, as the two personas use a handheld video camera to send recorded messages back and forth. Their encounter takes place at night in a Lumon birthing cabin equipped with a severance threshold that allows Mark S. to become Mark Scout each time he steps outside and onto the balcony.
    The cabin set was built on a soundstage at York Studios in the Bronx, New York. The balcony section consisted of the snowy floor, two chairs, and a railing, all surrounded by a blue screen background. Everything else was up to ILM to create.
    “It was nice to have Ben’s trust that we could just do it,” Leven remembers. “He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’”
    Artists filled in the scene with CG water, mountains, and moonlight to match the on-set lighting and of course, more snow. As Mark Scout steps onto the balcony, the camera pulls back to a wide shot, revealing the cabin’s full exterior. “They built a part of the exterior of the set. But everything other than the windows, even the railing, was digitally replaced,” Leven says.
    “It was nice to have Bentrust that we could just do it. He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’”Eric Leven
    Bonus: Marching Band MagicFinally, our bonus visual effects shot appears roughly halfway through the season finale. To celebrate Mark S. completing the Cold Harbor file, Mr. Milchick orders up a marching band from Lumon’s Choreography and Merriment department. Band members pour into MDR, but Leven says roughly 15 to 20 shots required adding a few more digital duplicates. “They wanted it to look like MDR was filled with band members. And for several of the shots there were holes in there. It just didn’t feel full enough,” he says.
    In a shot featuring a God’s-eye view of MDR, band members hold dozens of white cards above their heads, forming a giant illustration of a smiling Mark S. with text that reads “100%.”
    “For the top shot, we had to find a different stage because the MDR ceiling is only about eight feet tall,” recalls Leven. “And Ben really pushed to have it done practically, which I think was the right call because you’ve already got the band members, you’ve made the costumes, you’ve got the instruments. Let’s find a place to shoot it.”
    To get the high shot, the production team set up on an empty soundstage, placing signature MDR-green carpet on the floor. A simple foam core mock-up of the team’s desks occupied the center of the frame, with the finished CG versions added later.
    Even without the restraints of the practical MDR walls and ceiling, the camera could only get enough height to capture about 30 band members in the shot. So the scene was digitally expanded, with artists adding more green carpet, CG walls, and about 50 more band members.
    “We painted in new band members, extracting what we could from the practical plate,” Leven says. “We moved them around; we added more, just to make it look as full as Ben wanted.” Every single white card in the shot, Leven points out, is completely digital..
    A Mysterious and Important Collaboration
    With fans now fiercely debating the many twists and turns of Severance season two, Leven is quick to credit ILM’s two main visual effects collaborators: east side effects and Mango FX INC, as well as ILM studios and artists around the globe, including San Francisco, Vancouver, Singapore, Sydney, and Mumbai.
    Leven also believes Severance ultimately benefited from a successful creative partnership between ILM and Ben Stiller.
    “This one clicked so well, and it really made a difference on the show,” Leven says. “I think we both had the same sort of visual shorthand in terms of what we wanted things to look like. One of the things I love about working with Ben is that he’s obviously grounded in reality. He wants to shoot as much stuff real as possible, but then sometimes there’s a shot that will either come to him late or he just knows is impractical to shoot. And he knows that ILM can deliver it.”

    Clayton Sandell is a Star Wars author and enthusiast, TV storyteller, and a longtime fan of the creative people who keep Industrial Light & Magic and Skywalker Sound on the leading edge of visual effects and sound design. Follow him on InstagramBlueskyor X.
    #invisible #visual #effects #secrets #severance
    The Invisible Visual Effects Secrets of ‘Severance’ with ILM’s Eric Leven
    ILM teams with Ben Stiller and Apple TV+ to bring thousands of seamless visual effects shots to the hit drama’s second season. By Clayton Sandell There are mysterious and important secrets to be uncovered in the second season of the wildly popular Apple TV+ series Severance. About 3,500 of them are hiding in plain sight. That’s roughly the number of visual effects shots helping tell the Severance story over 10 gripping episodes in the latest season, a collaborative effort led by Industrial Light & Magic. ILM’s Eric Leven served as the Severance season two production visual effects supervisor. We asked him to help pull back the curtain on some of the show’s impressive digital artistry that most viewers will probably never notice. “This is the first show I’ve ever done where it’s nothing but invisible effects,” Leven tells ILM.com. “It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.” With so many season two shots to choose from, Leven helped us narrow down a list of his favorite visual effects sequences to five.Before we dig in, a word of caution. This article contains plot spoilers for Severance.Severance tells the story of Mark Scout, department chief of the secretive Severed Floor located in the basement level of Lumon Industries, a multinational biotech corporation. Mark S., as he’s known to his co-workers, heads up Macrodata Refinement, a department where employees help categorize numbers without knowing the true purpose of their work.  Mark and his team – Helly R., Dylan G., and Irving B., have all undergone a surgical procedure to “sever” their personal lives from their work lives. The chip embedded in their brains effectively creates two personalities that are sometimes at odds: an “Innie” during Lumon office hours and an “Outie” at home. “This is the first show I’ve ever done where it’s nothing but invisible effects. It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.”Eric Leven 1. The Running ManThe season one finale ends on a major cliffhanger. Mark S. learns that his Outie’s wife, Gemma – believed killed in a car crash years ago – is actually alive somewhere inside the Lumon complex. Season two opens with Mark S. arriving at the Severed Floor in a desperate search for Gemma, who he only knows as her Innie persona, Ms. Casey. The fast-paced sequence is designed to look like a single, two-minute shot. It begins with the camera making a series of rapid and elaborate moves around a frantic Mark S. as he steps out of the elevator, into the Severed Floor lobby, and begins running through the hallways. “The nice thing about that sequence was that everyone knew it was going to be difficult and challenging,” Leven says, adding that executive producer and Episode 201 director, Ben Stiller, began by mapping out the hallway run with his team. Leven recommended that a previsualization sequence – provided by The Third Floor – would help the filmmakers refine their plan before cameras rolled. “While prevising it, we didn’t worry about how we would actually photograph anything. It was just, ‘These are the visuals we want to capture,’” Leven says. “‘What does it look like for this guy to run down this hallway for two minutes? We’ll figure out how to shoot it later.’” The previs process helped determine how best to shoot the sequence, and also informed which parts of the soundstage set would have to be digitally replaced. The first shot was captured by a camera mounted on a Bolt X Cinebot motion-control arm provided by The Garage production company. The size of the motion-control setup, however, meant it could not fit in the confined space of an elevator or the existing hallways. “We couldn’t actually shoot in the elevator,” Leven says. “The whole elevator section of the set was removed and was replaced with computer graphics.” In addition to the elevator, ILM artists replaced portions of the floor, furniture, and an entire lobby wall, even adding a reflection of Adam Scott into the elevator doors. As Scott begins running, he’s picked up by a second camera mounted on a more compact, stabilized gimbal that allows the operator to quickly run behind and sometimes in front of the actor as he darts down different hallways. ILM seamlessly combined the first two Mark S. plates in a 2D composite. “Part of that is the magic of the artists at ILM who are doing that blend. But I have to give credit to Adam Scott because he ran the same way in both cameras without really being instructed,” says Leven. “Lucky for us, he led with the same foot. He used the same arm. I remember seeing it on the set, and I did a quick-and-dirty blend right there and thought, ‘Oh my gosh, this is going to work.’ So it was really nice.” The action continues at a frenetic pace, ultimately combining ten different shots to complete the sequence. “We didn’t want the very standard sleight of hand that you’ve seen a lot where you do a wipe across the white hallway,” Leven explains. “We tried to vary that as much as possible because we didn’t want to give away the gag. So, there are times when the camera will wipe across a hallway, and it’s not a computer graphics wipe. We’d hide the wipe somewhere else.” A slightly more complicated illusion comes as the camera sweeps around Mark S. from back to front as he barrels down another long hallway. “There was no way to get the camera to spin around Mark while he is running because there’s physically not enough room for the camera there,” says Leven. To capture the shot, Adam Scott ran on a treadmill placed on a green screen stage as the camera maneuvered around him. At that point, the entire hallway environment is made with computer graphics. Artists even added a few extra frames of the actor to help connect one shot to the next, selling the illusion of a single continuous take. “We painted in a bit of Adam Scott running around the corner. So if you freeze and look through it, you’ll see a bit of his heel. He never completely clears the frame,” Leven points out. Leven says ILM also provided Ben Stiller with options when it came to digitally changing up the look of Lumon’s sterile hallways: sometimes adding extra doors, vents, or even switching door handles. “I think Ben was very excited about having this opportunity,” says Leven. “He had never had a complete, fully computer graphics version of these hallways before. And now he was able to do things that he was never able to do in season one.”. 2. Let it SnowThe MDR team – Mark, Helly, Dylan, and Irving – unexpectedly find themselves in the snowy wilderness as part of a two-day Lumon Outdoor Retreat and Team-Building Occurrence, or ORTBO.  Exterior scenes were shot on location at Minnewaska State Park Preserve in New York. Throughout the ORTBO sequence, ILM performed substantial environment enhancements, making trees and landscapes appear far snowier than they were during the shoot. “It’s really nice to get the actors out there in the cold and see their breath,” Leven says. “It just wasn’t snowy during the shoot. Nearly every exterior shot was either replaced or enhanced with snow.” For a shot of Irving standing on a vast frozen lake, for example, virtually every element in the location plate – including an unfrozen lake, mountains, and trees behind actor John Turturro – was swapped out for a CG environment. Wide shots of a steep, rocky wall Irving must scale to reach his co-workers were also completely digital. Eventually, the MDR team discovers a waterfall that marks their arrival at a place called Woe’s Hollow. The location – the state park’s real-life Awosting Falls – also got extensive winter upgrades from ILM, including much more snow covering the ground and trees, an ice-covered pond, and hundreds of icicles clinging to the rocky walls. “To make it fit in the world of Severance, there’s a ton of work that has to happen,” Leven tells ILM.com.. 3. Welcome to LumonThe historic Bell Labs office complex, now known as Bell Works in Holmdel Township, New Jersey, stands in as the fictional Lumon Industries headquarters building. Exterior shots often underwent a significant digital metamorphosis, with artists transforming areas of green grass into snow-covered terrain, inserting a CG water tower, and rendering hundreds of 1980s-era cars to fill the parking lot. “We’re always adding cars, we’re always adding snow. We’re changing, subtly, the shape and the layout of the design,” says Leven. “We’re seeing new angles that we’ve never seen before. On the roof of Lumon, for example, the air conditioning units are specifically designed and created with computer graphics.” In real life, the complex is surrounded by dozens of houses, requiring the digital erasure of entire neighborhoods. “All of that is taken out,” Leven explains. “CG trees are put in, and new mountains are put in the background.” Episodes 202 and 203 feature several night scenes shot from outside the building looking in. In one sequence, a camera drone flying outside captured a long tracking shot of Helena Eaganmaking her way down a glass-enclosed walkway. The building’s atrium can be seen behind her, complete with a massive wall sculpture depicting company founder Kier Eagan. “We had to put the Kier sculpture in with the special lighting,” Leven reveals. “The entire atrium was computer graphics.” Artists completed the shot by adding CG reflections of the snowy parking lot to the side of the highly reflective building. “We have to replace what’s in the reflections because the real reflection is a parking lot with no snow or a parking lot with no cars,” explains Leven. “We’re often replacing all kinds of stuff that you wouldn’t think would need to be replaced.” Another nighttime scene shot from outside the building features Helena in a conference room overlooking the Lumon parking lot, which sits empty except for Mr. Milchickriding in on his motorcycle. “The top story, where she is standing, was practical,” says Leven, noting the shot was also captured using a drone hovering outside the window. “The second story below her was all computer graphics. Everything other than the building is computer graphics. They did shoot a motorcycle on location, getting as much practical reference as possible, but then it had to be digitally replaced after the fact to make it work with the rest of the shot.”. 4. Time in MotionEpisode seven reveals that MDR’s progress is being monitored by four dopplegang-ish observers in a control room one floor below, revealed via a complex move that has the camera traveling downward through a mass of data cables. “They built an oversize cable run, and they shot with small probe lenses. Visual effects helped by blending several plates together,” explains Leven. “It was a collaboration between many different departments, which was really nice. Visual effects helped with stuff that just couldn’t be shot for real. For example, when the camera exits the thin holes of the metal grate at the bottom of the floor, that grate is computer graphics.” The sequence continues with a sweeping motion-control time-lapse shot that travels around the control-room observers in a spiral pattern, a feat pulled off with an ingenious mix of technical innovation and old-school sleight of hand. A previs sequence from The Third Floor laid out the camera move, but because the Bolt arm motion-control rig could only travel on a straight track and cover roughly one-quarter of the required distance, The Garage came up with a way to break the shot into multiple passes. The passes would later be stitched together into one seemingly uninterrupted movement. The symmetrical set design – including the four identical workstations – helped complete the illusion, along with a clever solution that kept the four actors in the correct position relative to the camera. “The camera would basically get to the end of the track,” Leven explains. “Then everybody would switch positions 90 degrees. Everyone would get out of their chairs and move. The camera would go back to one, and it would look like one continuous move around in a circle because the room is perfectly symmetrical, and everything in it is perfectly symmetrical. We were able to move the actors, and it looks like the camera was going all the way around the room.” The final motion-control move switches from time-lapse back to real time as the camera passes by a workstation and reveals Mr. Drummondand Dr. Mauerstanding behind it. Leven notes that each pass was completed with just one take. 5. Mark vs. MarkThe Severance season two finale begins with an increasingly tense conversation between Innie Mark and Outie Mark, as the two personas use a handheld video camera to send recorded messages back and forth. Their encounter takes place at night in a Lumon birthing cabin equipped with a severance threshold that allows Mark S. to become Mark Scout each time he steps outside and onto the balcony. The cabin set was built on a soundstage at York Studios in the Bronx, New York. The balcony section consisted of the snowy floor, two chairs, and a railing, all surrounded by a blue screen background. Everything else was up to ILM to create. “It was nice to have Ben’s trust that we could just do it,” Leven remembers. “He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’” Artists filled in the scene with CG water, mountains, and moonlight to match the on-set lighting and of course, more snow. As Mark Scout steps onto the balcony, the camera pulls back to a wide shot, revealing the cabin’s full exterior. “They built a part of the exterior of the set. But everything other than the windows, even the railing, was digitally replaced,” Leven says. “It was nice to have Bentrust that we could just do it. He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’”Eric Leven Bonus: Marching Band MagicFinally, our bonus visual effects shot appears roughly halfway through the season finale. To celebrate Mark S. completing the Cold Harbor file, Mr. Milchick orders up a marching band from Lumon’s Choreography and Merriment department. Band members pour into MDR, but Leven says roughly 15 to 20 shots required adding a few more digital duplicates. “They wanted it to look like MDR was filled with band members. And for several of the shots there were holes in there. It just didn’t feel full enough,” he says. In a shot featuring a God’s-eye view of MDR, band members hold dozens of white cards above their heads, forming a giant illustration of a smiling Mark S. with text that reads “100%.” “For the top shot, we had to find a different stage because the MDR ceiling is only about eight feet tall,” recalls Leven. “And Ben really pushed to have it done practically, which I think was the right call because you’ve already got the band members, you’ve made the costumes, you’ve got the instruments. Let’s find a place to shoot it.” To get the high shot, the production team set up on an empty soundstage, placing signature MDR-green carpet on the floor. A simple foam core mock-up of the team’s desks occupied the center of the frame, with the finished CG versions added later. Even without the restraints of the practical MDR walls and ceiling, the camera could only get enough height to capture about 30 band members in the shot. So the scene was digitally expanded, with artists adding more green carpet, CG walls, and about 50 more band members. “We painted in new band members, extracting what we could from the practical plate,” Leven says. “We moved them around; we added more, just to make it look as full as Ben wanted.” Every single white card in the shot, Leven points out, is completely digital.. A Mysterious and Important Collaboration With fans now fiercely debating the many twists and turns of Severance season two, Leven is quick to credit ILM’s two main visual effects collaborators: east side effects and Mango FX INC, as well as ILM studios and artists around the globe, including San Francisco, Vancouver, Singapore, Sydney, and Mumbai. Leven also believes Severance ultimately benefited from a successful creative partnership between ILM and Ben Stiller. “This one clicked so well, and it really made a difference on the show,” Leven says. “I think we both had the same sort of visual shorthand in terms of what we wanted things to look like. One of the things I love about working with Ben is that he’s obviously grounded in reality. He wants to shoot as much stuff real as possible, but then sometimes there’s a shot that will either come to him late or he just knows is impractical to shoot. And he knows that ILM can deliver it.” — Clayton Sandell is a Star Wars author and enthusiast, TV storyteller, and a longtime fan of the creative people who keep Industrial Light & Magic and Skywalker Sound on the leading edge of visual effects and sound design. Follow him on InstagramBlueskyor X. #invisible #visual #effects #secrets #severance
    WWW.ILM.COM
    The Invisible Visual Effects Secrets of ‘Severance’ with ILM’s Eric Leven
    ILM teams with Ben Stiller and Apple TV+ to bring thousands of seamless visual effects shots to the hit drama’s second season. By Clayton Sandell There are mysterious and important secrets to be uncovered in the second season of the wildly popular Apple TV+ series Severance (2022-present). About 3,500 of them are hiding in plain sight. That’s roughly the number of visual effects shots helping tell the Severance story over 10 gripping episodes in the latest season, a collaborative effort led by Industrial Light & Magic. ILM’s Eric Leven served as the Severance season two production visual effects supervisor. We asked him to help pull back the curtain on some of the show’s impressive digital artistry that most viewers will probably never notice. “This is the first show I’ve ever done where it’s nothing but invisible effects,” Leven tells ILM.com. “It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.” With so many season two shots to choose from, Leven helped us narrow down a list of his favorite visual effects sequences to five. (As a bonus, we’ll also dive into an iconic season finale shot featuring the Mr. Milchick-led marching band.) Before we dig in, a word of caution. This article contains plot spoilers for Severance. (And in case you’re already wondering: No, the goats are not computer-graphics.) Severance tells the story of Mark Scout (Adam Scott), department chief of the secretive Severed Floor located in the basement level of Lumon Industries, a multinational biotech corporation. Mark S., as he’s known to his co-workers, heads up Macrodata Refinement (MDR), a department where employees help categorize numbers without knowing the true purpose of their work.  Mark and his team – Helly R. (Britt Lower), Dylan G. (Zach Cherry), and Irving B. (John Turturro), have all undergone a surgical procedure to “sever” their personal lives from their work lives. The chip embedded in their brains effectively creates two personalities that are sometimes at odds: an “Innie” during Lumon office hours and an “Outie” at home. “This is the first show I’ve ever done where it’s nothing but invisible effects. It’s a really different calculus because nobody talks about them. And if you’ve done them well, they are invisible to the naked eye.”Eric Leven 1. The Running Man (Episode 201: “Hello, Ms. Cobel”) The season one finale ends on a major cliffhanger. Mark S. learns that his Outie’s wife, Gemma – believed killed in a car crash years ago – is actually alive somewhere inside the Lumon complex. Season two opens with Mark S. arriving at the Severed Floor in a desperate search for Gemma, who he only knows as her Innie persona, Ms. Casey. The fast-paced sequence is designed to look like a single, two-minute shot. It begins with the camera making a series of rapid and elaborate moves around a frantic Mark S. as he steps out of the elevator, into the Severed Floor lobby, and begins running through the hallways. “The nice thing about that sequence was that everyone knew it was going to be difficult and challenging,” Leven says, adding that executive producer and Episode 201 director, Ben Stiller, began by mapping out the hallway run with his team. Leven recommended that a previsualization sequence – provided by The Third Floor – would help the filmmakers refine their plan before cameras rolled. “While prevising it, we didn’t worry about how we would actually photograph anything. It was just, ‘These are the visuals we want to capture,’” Leven says. “‘What does it look like for this guy to run down this hallway for two minutes? We’ll figure out how to shoot it later.’” The previs process helped determine how best to shoot the sequence, and also informed which parts of the soundstage set would have to be digitally replaced. The first shot was captured by a camera mounted on a Bolt X Cinebot motion-control arm provided by The Garage production company. The size of the motion-control setup, however, meant it could not fit in the confined space of an elevator or the existing hallways. “We couldn’t actually shoot in the elevator,” Leven says. “The whole elevator section of the set was removed and was replaced with computer graphics [CG].” In addition to the elevator, ILM artists replaced portions of the floor, furniture, and an entire lobby wall, even adding a reflection of Adam Scott into the elevator doors. As Scott begins running, he’s picked up by a second camera mounted on a more compact, stabilized gimbal that allows the operator to quickly run behind and sometimes in front of the actor as he darts down different hallways. ILM seamlessly combined the first two Mark S. plates in a 2D composite. “Part of that is the magic of the artists at ILM who are doing that blend. But I have to give credit to Adam Scott because he ran the same way in both cameras without really being instructed,” says Leven. “Lucky for us, he led with the same foot. He used the same arm. I remember seeing it on the set, and I did a quick-and-dirty blend right there and thought, ‘Oh my gosh, this is going to work.’ So it was really nice.” The action continues at a frenetic pace, ultimately combining ten different shots to complete the sequence. “We didn’t want the very standard sleight of hand that you’ve seen a lot where you do a wipe across the white hallway,” Leven explains. “We tried to vary that as much as possible because we didn’t want to give away the gag. So, there are times when the camera will wipe across a hallway, and it’s not a computer graphics wipe. We’d hide the wipe somewhere else.” A slightly more complicated illusion comes as the camera sweeps around Mark S. from back to front as he barrels down another long hallway. “There was no way to get the camera to spin around Mark while he is running because there’s physically not enough room for the camera there,” says Leven. To capture the shot, Adam Scott ran on a treadmill placed on a green screen stage as the camera maneuvered around him. At that point, the entire hallway environment is made with computer graphics. Artists even added a few extra frames of the actor to help connect one shot to the next, selling the illusion of a single continuous take. “We painted in a bit of Adam Scott running around the corner. So if you freeze and look through it, you’ll see a bit of his heel. He never completely clears the frame,” Leven points out. Leven says ILM also provided Ben Stiller with options when it came to digitally changing up the look of Lumon’s sterile hallways: sometimes adding extra doors, vents, or even switching door handles. “I think Ben was very excited about having this opportunity,” says Leven. “He had never had a complete, fully computer graphics version of these hallways before. And now he was able to do things that he was never able to do in season one.” (Credit: Apple TV+). 2. Let it Snow (Episode 204: “Woe’s Hollow”) The MDR team – Mark, Helly, Dylan, and Irving – unexpectedly find themselves in the snowy wilderness as part of a two-day Lumon Outdoor Retreat and Team-Building Occurrence, or ORTBO.  Exterior scenes were shot on location at Minnewaska State Park Preserve in New York. Throughout the ORTBO sequence, ILM performed substantial environment enhancements, making trees and landscapes appear far snowier than they were during the shoot. “It’s really nice to get the actors out there in the cold and see their breath,” Leven says. “It just wasn’t snowy during the shoot. Nearly every exterior shot was either replaced or enhanced with snow.” For a shot of Irving standing on a vast frozen lake, for example, virtually every element in the location plate – including an unfrozen lake, mountains, and trees behind actor John Turturro – was swapped out for a CG environment. Wide shots of a steep, rocky wall Irving must scale to reach his co-workers were also completely digital. Eventually, the MDR team discovers a waterfall that marks their arrival at a place called Woe’s Hollow. The location – the state park’s real-life Awosting Falls – also got extensive winter upgrades from ILM, including much more snow covering the ground and trees, an ice-covered pond, and hundreds of icicles clinging to the rocky walls. “To make it fit in the world of Severance, there’s a ton of work that has to happen,” Leven tells ILM.com. (Credit: Apple TV+). 3. Welcome to Lumon (Episode 202: “Goodbye, Mrs. Selvig” & Episode 203: “Who is Alive?”) The historic Bell Labs office complex, now known as Bell Works in Holmdel Township, New Jersey, stands in as the fictional Lumon Industries headquarters building. Exterior shots often underwent a significant digital metamorphosis, with artists transforming areas of green grass into snow-covered terrain, inserting a CG water tower, and rendering hundreds of 1980s-era cars to fill the parking lot. “We’re always adding cars, we’re always adding snow. We’re changing, subtly, the shape and the layout of the design,” says Leven. “We’re seeing new angles that we’ve never seen before. On the roof of Lumon, for example, the air conditioning units are specifically designed and created with computer graphics.” In real life, the complex is surrounded by dozens of houses, requiring the digital erasure of entire neighborhoods. “All of that is taken out,” Leven explains. “CG trees are put in, and new mountains are put in the background.” Episodes 202 and 203 feature several night scenes shot from outside the building looking in. In one sequence, a camera drone flying outside captured a long tracking shot of Helena Eagan (Helly R.’s Outie) making her way down a glass-enclosed walkway. The building’s atrium can be seen behind her, complete with a massive wall sculpture depicting company founder Kier Eagan. “We had to put the Kier sculpture in with the special lighting,” Leven reveals. “The entire atrium was computer graphics.” Artists completed the shot by adding CG reflections of the snowy parking lot to the side of the highly reflective building. “We have to replace what’s in the reflections because the real reflection is a parking lot with no snow or a parking lot with no cars,” explains Leven. “We’re often replacing all kinds of stuff that you wouldn’t think would need to be replaced.” Another nighttime scene shot from outside the building features Helena in a conference room overlooking the Lumon parking lot, which sits empty except for Mr. Milchick (Tramell Tillman) riding in on his motorcycle. “The top story, where she is standing, was practical,” says Leven, noting the shot was also captured using a drone hovering outside the window. “The second story below her was all computer graphics. Everything other than the building is computer graphics. They did shoot a motorcycle on location, getting as much practical reference as possible, but then it had to be digitally replaced after the fact to make it work with the rest of the shot.” (Credit: Apple TV+). 4. Time in Motion (Episode 207: “Chikhai Bardo”) Episode seven reveals that MDR’s progress is being monitored by four dopplegang-ish observers in a control room one floor below, revealed via a complex move that has the camera traveling downward through a mass of data cables. “They built an oversize cable run, and they shot with small probe lenses. Visual effects helped by blending several plates together,” explains Leven. “It was a collaboration between many different departments, which was really nice. Visual effects helped with stuff that just couldn’t be shot for real. For example, when the camera exits the thin holes of the metal grate at the bottom of the floor, that grate is computer graphics.” The sequence continues with a sweeping motion-control time-lapse shot that travels around the control-room observers in a spiral pattern, a feat pulled off with an ingenious mix of technical innovation and old-school sleight of hand. A previs sequence from The Third Floor laid out the camera move, but because the Bolt arm motion-control rig could only travel on a straight track and cover roughly one-quarter of the required distance, The Garage came up with a way to break the shot into multiple passes. The passes would later be stitched together into one seemingly uninterrupted movement. The symmetrical set design – including the four identical workstations – helped complete the illusion, along with a clever solution that kept the four actors in the correct position relative to the camera. “The camera would basically get to the end of the track,” Leven explains. “Then everybody would switch positions 90 degrees. Everyone would get out of their chairs and move. The camera would go back to one, and it would look like one continuous move around in a circle because the room is perfectly symmetrical, and everything in it is perfectly symmetrical. We were able to move the actors, and it looks like the camera was going all the way around the room.” The final motion-control move switches from time-lapse back to real time as the camera passes by a workstation and reveals Mr. Drummond (Ólafur Darri Ólafsson) and Dr. Mauer (Robby Benson) standing behind it. Leven notes that each pass was completed with just one take. 5. Mark vs. Mark (Episode 210: “Cold Harbor”) The Severance season two finale begins with an increasingly tense conversation between Innie Mark and Outie Mark, as the two personas use a handheld video camera to send recorded messages back and forth. Their encounter takes place at night in a Lumon birthing cabin equipped with a severance threshold that allows Mark S. to become Mark Scout each time he steps outside and onto the balcony. The cabin set was built on a soundstage at York Studios in the Bronx, New York. The balcony section consisted of the snowy floor, two chairs, and a railing, all surrounded by a blue screen background. Everything else was up to ILM to create. “It was nice to have Ben’s trust that we could just do it,” Leven remembers. “He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’” Artists filled in the scene with CG water, mountains, and moonlight to match the on-set lighting and of course, more snow. As Mark Scout steps onto the balcony, the camera pulls back to a wide shot, revealing the cabin’s full exterior. “They built a part of the exterior of the set. But everything other than the windows, even the railing, was digitally replaced,” Leven says. “It was nice to have Ben [Stiller’s] trust that we could just do it. He said, ‘Hey, you’re just going to make this look great, right?’ We said, ‘Yeah, no problem.’”Eric Leven Bonus: Marching Band Magic (Episode 210: “Cold Harbor”) Finally, our bonus visual effects shot appears roughly halfway through the season finale. To celebrate Mark S. completing the Cold Harbor file, Mr. Milchick orders up a marching band from Lumon’s Choreography and Merriment department. Band members pour into MDR, but Leven says roughly 15 to 20 shots required adding a few more digital duplicates. “They wanted it to look like MDR was filled with band members. And for several of the shots there were holes in there. It just didn’t feel full enough,” he says. In a shot featuring a God’s-eye view of MDR, band members hold dozens of white cards above their heads, forming a giant illustration of a smiling Mark S. with text that reads “100%.” “For the top shot, we had to find a different stage because the MDR ceiling is only about eight feet tall,” recalls Leven. “And Ben really pushed to have it done practically, which I think was the right call because you’ve already got the band members, you’ve made the costumes, you’ve got the instruments. Let’s find a place to shoot it.” To get the high shot, the production team set up on an empty soundstage, placing signature MDR-green carpet on the floor. A simple foam core mock-up of the team’s desks occupied the center of the frame, with the finished CG versions added later. Even without the restraints of the practical MDR walls and ceiling, the camera could only get enough height to capture about 30 band members in the shot. So the scene was digitally expanded, with artists adding more green carpet, CG walls, and about 50 more band members. “We painted in new band members, extracting what we could from the practical plate,” Leven says. “We moved them around; we added more, just to make it look as full as Ben wanted.” Every single white card in the shot, Leven points out, is completely digital. (Credit: Apple TV+). A Mysterious and Important Collaboration With fans now fiercely debating the many twists and turns of Severance season two, Leven is quick to credit ILM’s two main visual effects collaborators: east side effects and Mango FX INC, as well as ILM studios and artists around the globe, including San Francisco, Vancouver, Singapore, Sydney, and Mumbai. Leven also believes Severance ultimately benefited from a successful creative partnership between ILM and Ben Stiller. “This one clicked so well, and it really made a difference on the show,” Leven says. “I think we both had the same sort of visual shorthand in terms of what we wanted things to look like. One of the things I love about working with Ben is that he’s obviously grounded in reality. He wants to shoot as much stuff real as possible, but then sometimes there’s a shot that will either come to him late or he just knows is impractical to shoot. And he knows that ILM can deliver it.” — Clayton Sandell is a Star Wars author and enthusiast, TV storyteller, and a longtime fan of the creative people who keep Industrial Light & Magic and Skywalker Sound on the leading edge of visual effects and sound design. Follow him on Instagram (@claytonsandell) Bluesky (@claytonsandell.com) or X (@Clayton_Sandell).
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  • The hidden time bomb in the tax code that's fueling mass tech layoffs: A decades-old tax rule helped build America's tech economy. A quiet change under Trump helped dismantle it

    For the past two years, it’s been a ghost in the machine of American tech. Between 2022 and today, a little-noticed tweak to the U.S. tax code has quietly rewired the financial logic of how American companies invest in research and development. Outside of CFO and accounting circles, almost no one knew it existed. “I work on these tax write-offs and still hadn’t heard about this,” a chief operating officer at a private-equity-backed tech company told Quartz. “It’s just been so weirdly silent.”AdvertisementStill, the delayed change to a decades-old tax provision — buried deep in the 2017 tax law — has contributed to the loss of hundreds of thousands of high-paying, white-collar jobs. That’s the picture that emerges from a review of corporate filings, public financial data, analysis of timelines, and interviews with industry insiders. One accountant, working in-house at a tech company, described it as a “niche issue with broad impact,” echoing sentiments from venture capital investors also interviewed for this article. Some spoke on condition of anonymity to discuss sensitive political matters.Since the start of 2023, more than half-a-million tech workers have been laid off, according to industry tallies. Headlines have blamed over-hiring during the pandemic and, more recently, AI. But beneath the surface was a hidden accelerant: a change to what’s known as Section 174 that helped gut in-house software and product development teams everywhere from tech giants such as Microsoftand Metato much smaller, private, direct-to-consumer and other internet-first companies.Now, as a bipartisan effort to repeal the Section 174 change moves through Congress, bigger questions are surfacing: How did a single line in the tax code help trigger a tsunami of mass layoffs? And why did no one see it coming? For almost 70 years, American companies could deduct 100% of qualified research and development spending in the year they incurred the costs. Salaries, software, contractor payments — if it contributed to creating or improving a product, it came off the top of a firm’s taxable income.AdvertisementThe deduction was guaranteed by Section 174 of the IRS Code of 1954, and under the provision, R&D flourished in the U.S.Microsoft was founded in 1975. Applelaunched its first computer in 1976. Googleincorporated in 1998. Facebook opened to the general public in 2006. All these companies, now among the most valuable in the world, developed their earliest products — programming tools, hardware, search engines — under a tax system that rewarded building now, not later.The subsequent rise of smartphones, cloud computing, and mobile apps also happened in an America where companies could immediately write off their investments in engineering, infrastructure, and experimentation. It was a baseline assumption — innovation and risk-taking subsidized by the tax code — that shaped how founders operated and how investors made decisions.In turn, tech companies largely built their products in the U.S. AdvertisementMicrosoft’s operating systems were coded in Washington state. Apple’s early hardware and software teams were in California. Google’s search engine was born at Stanford and scaled from Mountain View. Facebook’s entire social architecture was developed in Menlo Park. The deduction directly incentivized keeping R&D close to home, rewarding companies for investing in American workers, engineers, and infrastructure.That’s what makes the politics of Section 174 so revealing. For all the rhetoric about bringing jobs back and making things in America, the first Trump administration’s major tax bill arguably helped accomplish the opposite.When Congress passed the Tax Cuts and Jobs Act, the signature legislative achievement of President Donald Trump’s first term, it slashed the corporate tax rate from 35% to 21% — a massive revenue loss on paper for the federal government.To make the 2017 bill comply with Senate budget rules, lawmakers needed to offset the cost. So they added future tax hikes that wouldn’t kick in right away, wouldn’t provoke immediate backlash from businesses, and could, in theory, be quietly repealed later.AdvertisementThe delayed change to Section 174 — from immediate expensing of R&D to mandatory amortization, meaning that companies must spread the deduction out in smaller chunks over five or even 15-year periods — was that kind of provision. It didn’t start affecting the budget until 2022, but it helped the TCJA appear “deficit neutral” over the 10-year window used for legislative scoring.The delay wasn’t a technical necessity. It was a political tactic. Such moves are common in tax legislation. Phase-ins and delayed provisions let lawmakers game how the Congressional Budget Office— Congress’ nonpartisan analyst of how bills impact budgets and deficits — scores legislation, pushing costs or revenue losses outside official forecasting windows.And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. The tax benefits of salaries for engineers, product and project managers, data scientists, and even some user experience and marketing staff — all of which had previously reduced taxable income in year one — now had to be spread out over five- or 15-year periods. To understand the impact, imagine a personal tax code change that allowed you to deduct 100% of your biggest source of expenses, and that becoming a 20% deduction. For cash-strapped companies, especially those not yet profitable, the result was a painful tax bill just as venture funding dried up and interest rates soared.AdvertisementSalesforce office buildings in San Francisco.Photo: Jason Henry/BloombergIt’s no coincidence that Meta announced its “Year of Efficiency” immediately after the Section 174 change took effect. Ditto Microsoft laying off 10,000 employees in January 2023 despite strong earnings, or Google parent Alphabet cutting 12,000 jobs around the same time.Amazonalso laid off almost 30,000 people, with cuts focused not just on logistics but on Alexa and internal cloud tools — precisely the kinds of projects that would have once qualified as immediately deductible R&D. Salesforceeliminated 10% of its staff, or 8,000 people, including entire product teams.In public, companies blamed bloat and AI. But inside boardrooms, spreadsheets were telling a quieter story. And MD&A notes — management’s notes on the numbers — buried deep in 10-K filings recorded the change, too. R&D had become more expensive to carry. Headcount, the leading R&D expense across the tech industry, was the easiest thing to cut.AdvertisementIn its 2023 annual report, Meta described salaries as its single biggest R&D expense. Between the first and second years that the Section 174 change began affecting tax returns, Meta cut its total workforce by almost 25%. Over the same period, Microsoft reduced its global headcount by about 7%, with cuts concentrated in product-facing, engineering-heavy roles.Smaller companies without the fortress-like balance sheets of Big Tech have arguably been hit even harder. Twilioslashed 22% of its workforce in 2023 alone. Shopifycut almost 30% of staff in 2022 and 2023. Coinbasereduced headcount by 36% across a pair of brutal restructuring waves.Since going into effect, the provision has hit at the very heart of America’s economic growth engine: the tech sector.By market cap, tech giants dominate the S&P 500, with the “Magnificent 7” alone accounting for more than a third of the index’s total value. Workforce numbers tell a similar story, with tech employing millions of Americans directly and supporting the employment of tens of millions more. As measured by GDP, capital-T tech contributes about 10% of national output.AdvertisementIt’s not just that tech layoffs were large, it’s that they were massively disproportionate. Across the broader U.S. economy, job cuts hovered around in low single digits across most sectors. But in tech, entire divisions vanished, with a whopping 60% jump in layoffs between 2022 and 2023. Some cuts reflected real inefficiencies — a response to over-hiring during the zero-interest rate boom. At the same time, many of the roles eliminated were in R&D, product, and engineering, precisely the kind of functions that had once benefitted from generous tax treatment under Section 174.Throughout the 2010s, a broad swath of startups, direct-to-consumer brands, and internet-first firms — basically every company you recognize from Instagram or Facebook ads — built their growth models around a kind of engineered break-even.The tax code allowed them to spend aggressively on product and engineering, then write it all off as R&D, keeping their taxable income close to zero by design. It worked because taxable income and actual cash flow were often notGAAP accounting practices. Basically, as long as spending counted as R&D, companies could report losses to investors while owing almost nothing to the IRS.But the Section 174 change broke that model. Once those same expenses had to be spread out, or amortized, over multiple years, the tax shield vanished. Companies that were still burning cash suddenly looked profitable on paper, triggering real tax bills on imaginary gains.AdvertisementThe logic that once fueled a generation of digital-first growth collapsed overnight.So it wasn’t just tech experiencing effects. From 1954 until 2022, the U.S. tax code had encouraged businesses of all stripes to behave like tech companies. From retail to logistics, healthcare to media, if firms built internal tools, customized a software stack, or invested in business intelligence and data-driven product development, they could expense those costs. The write-off incentivized in-house builds and fast growth well outside the capital-T tech sector. This lines up with OECD research showing that immediate deductions foster innovation more than spread-out ones.And American companies ran with that logic. According to government data, U.S. businesses reported about billion in R&D expenditures in 2019 alone, and almost half of that came from industries outside traditional tech. The Bureau of Economic Analysis estimates that this sector, the broader digital economy, accounts for another 10% of GDP.Add that to core tech’s contribution, and the Section 174 shift has likely touched at least 20% of the U.S. economy.AdvertisementThe result? A tax policy aimed at raising short-term revenue effectively hid a time bomb inside the growth engines of thousands of companies. And when it detonated, it kneecapped the incentive for hiring American engineers or investing in American-made tech and digital products.It made building tech companies in America look irrational on a spreadsheet.A bipartisan group of lawmakers is pushing to repeal the Section 174 change, with business groups, CFOs, crypto executives, and venture capitalists lobbying hard for retroactive relief. But the politics are messy. Fixing 174 would mean handing a tax break to the same companies many voters in both parties see as symbols of corporate excess. Any repeal would also come too late for the hundreds of thousands of workers already laid off.And of course, the losses don’t stop at Meta’s or Google’s campus gates. They ripple out. When high-paid tech workers disappear, so do the lunch orders. The house tours. The contract gigs. The spending habits that sustain entire urban economies and thousands of other jobs. Sandwich artists. Rideshare drivers. Realtors. Personal trainers. House cleaners. In tech-heavy cities, the fallout runs deep — and it’s still unfolding.AdvertisementWashington is now poised to pass a second Trump tax bill — one packed with more obscure provisions, more delayed impacts, more quiet redistribution. And it comes as analysts are only just beginning to understand the real-world effects of the last round.The Section 174 change “significantly increased the tax burden on companies investing in innovation, potentially stifling economic growth and reducing the United States’ competitiveness on the global stage,” according to the tax consulting firm KBKG. Whether the U.S. will reverse course — or simply adapt to a new normal — remains to be seen.
    #hidden #time #bomb #tax #code
    The hidden time bomb in the tax code that's fueling mass tech layoffs: A decades-old tax rule helped build America's tech economy. A quiet change under Trump helped dismantle it
    For the past two years, it’s been a ghost in the machine of American tech. Between 2022 and today, a little-noticed tweak to the U.S. tax code has quietly rewired the financial logic of how American companies invest in research and development. Outside of CFO and accounting circles, almost no one knew it existed. “I work on these tax write-offs and still hadn’t heard about this,” a chief operating officer at a private-equity-backed tech company told Quartz. “It’s just been so weirdly silent.”AdvertisementStill, the delayed change to a decades-old tax provision — buried deep in the 2017 tax law — has contributed to the loss of hundreds of thousands of high-paying, white-collar jobs. That’s the picture that emerges from a review of corporate filings, public financial data, analysis of timelines, and interviews with industry insiders. One accountant, working in-house at a tech company, described it as a “niche issue with broad impact,” echoing sentiments from venture capital investors also interviewed for this article. Some spoke on condition of anonymity to discuss sensitive political matters.Since the start of 2023, more than half-a-million tech workers have been laid off, according to industry tallies. Headlines have blamed over-hiring during the pandemic and, more recently, AI. But beneath the surface was a hidden accelerant: a change to what’s known as Section 174 that helped gut in-house software and product development teams everywhere from tech giants such as Microsoftand Metato much smaller, private, direct-to-consumer and other internet-first companies.Now, as a bipartisan effort to repeal the Section 174 change moves through Congress, bigger questions are surfacing: How did a single line in the tax code help trigger a tsunami of mass layoffs? And why did no one see it coming? For almost 70 years, American companies could deduct 100% of qualified research and development spending in the year they incurred the costs. Salaries, software, contractor payments — if it contributed to creating or improving a product, it came off the top of a firm’s taxable income.AdvertisementThe deduction was guaranteed by Section 174 of the IRS Code of 1954, and under the provision, R&D flourished in the U.S.Microsoft was founded in 1975. Applelaunched its first computer in 1976. Googleincorporated in 1998. Facebook opened to the general public in 2006. All these companies, now among the most valuable in the world, developed their earliest products — programming tools, hardware, search engines — under a tax system that rewarded building now, not later.The subsequent rise of smartphones, cloud computing, and mobile apps also happened in an America where companies could immediately write off their investments in engineering, infrastructure, and experimentation. It was a baseline assumption — innovation and risk-taking subsidized by the tax code — that shaped how founders operated and how investors made decisions.In turn, tech companies largely built their products in the U.S. AdvertisementMicrosoft’s operating systems were coded in Washington state. Apple’s early hardware and software teams were in California. Google’s search engine was born at Stanford and scaled from Mountain View. Facebook’s entire social architecture was developed in Menlo Park. The deduction directly incentivized keeping R&D close to home, rewarding companies for investing in American workers, engineers, and infrastructure.That’s what makes the politics of Section 174 so revealing. For all the rhetoric about bringing jobs back and making things in America, the first Trump administration’s major tax bill arguably helped accomplish the opposite.When Congress passed the Tax Cuts and Jobs Act, the signature legislative achievement of President Donald Trump’s first term, it slashed the corporate tax rate from 35% to 21% — a massive revenue loss on paper for the federal government.To make the 2017 bill comply with Senate budget rules, lawmakers needed to offset the cost. So they added future tax hikes that wouldn’t kick in right away, wouldn’t provoke immediate backlash from businesses, and could, in theory, be quietly repealed later.AdvertisementThe delayed change to Section 174 — from immediate expensing of R&D to mandatory amortization, meaning that companies must spread the deduction out in smaller chunks over five or even 15-year periods — was that kind of provision. It didn’t start affecting the budget until 2022, but it helped the TCJA appear “deficit neutral” over the 10-year window used for legislative scoring.The delay wasn’t a technical necessity. It was a political tactic. Such moves are common in tax legislation. Phase-ins and delayed provisions let lawmakers game how the Congressional Budget Office— Congress’ nonpartisan analyst of how bills impact budgets and deficits — scores legislation, pushing costs or revenue losses outside official forecasting windows.And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. The tax benefits of salaries for engineers, product and project managers, data scientists, and even some user experience and marketing staff — all of which had previously reduced taxable income in year one — now had to be spread out over five- or 15-year periods. To understand the impact, imagine a personal tax code change that allowed you to deduct 100% of your biggest source of expenses, and that becoming a 20% deduction. For cash-strapped companies, especially those not yet profitable, the result was a painful tax bill just as venture funding dried up and interest rates soared.AdvertisementSalesforce office buildings in San Francisco.Photo: Jason Henry/BloombergIt’s no coincidence that Meta announced its “Year of Efficiency” immediately after the Section 174 change took effect. Ditto Microsoft laying off 10,000 employees in January 2023 despite strong earnings, or Google parent Alphabet cutting 12,000 jobs around the same time.Amazonalso laid off almost 30,000 people, with cuts focused not just on logistics but on Alexa and internal cloud tools — precisely the kinds of projects that would have once qualified as immediately deductible R&D. Salesforceeliminated 10% of its staff, or 8,000 people, including entire product teams.In public, companies blamed bloat and AI. But inside boardrooms, spreadsheets were telling a quieter story. And MD&A notes — management’s notes on the numbers — buried deep in 10-K filings recorded the change, too. R&D had become more expensive to carry. Headcount, the leading R&D expense across the tech industry, was the easiest thing to cut.AdvertisementIn its 2023 annual report, Meta described salaries as its single biggest R&D expense. Between the first and second years that the Section 174 change began affecting tax returns, Meta cut its total workforce by almost 25%. Over the same period, Microsoft reduced its global headcount by about 7%, with cuts concentrated in product-facing, engineering-heavy roles.Smaller companies without the fortress-like balance sheets of Big Tech have arguably been hit even harder. Twilioslashed 22% of its workforce in 2023 alone. Shopifycut almost 30% of staff in 2022 and 2023. Coinbasereduced headcount by 36% across a pair of brutal restructuring waves.Since going into effect, the provision has hit at the very heart of America’s economic growth engine: the tech sector.By market cap, tech giants dominate the S&P 500, with the “Magnificent 7” alone accounting for more than a third of the index’s total value. Workforce numbers tell a similar story, with tech employing millions of Americans directly and supporting the employment of tens of millions more. As measured by GDP, capital-T tech contributes about 10% of national output.AdvertisementIt’s not just that tech layoffs were large, it’s that they were massively disproportionate. Across the broader U.S. economy, job cuts hovered around in low single digits across most sectors. But in tech, entire divisions vanished, with a whopping 60% jump in layoffs between 2022 and 2023. Some cuts reflected real inefficiencies — a response to over-hiring during the zero-interest rate boom. At the same time, many of the roles eliminated were in R&D, product, and engineering, precisely the kind of functions that had once benefitted from generous tax treatment under Section 174.Throughout the 2010s, a broad swath of startups, direct-to-consumer brands, and internet-first firms — basically every company you recognize from Instagram or Facebook ads — built their growth models around a kind of engineered break-even.The tax code allowed them to spend aggressively on product and engineering, then write it all off as R&D, keeping their taxable income close to zero by design. It worked because taxable income and actual cash flow were often notGAAP accounting practices. Basically, as long as spending counted as R&D, companies could report losses to investors while owing almost nothing to the IRS.But the Section 174 change broke that model. Once those same expenses had to be spread out, or amortized, over multiple years, the tax shield vanished. Companies that were still burning cash suddenly looked profitable on paper, triggering real tax bills on imaginary gains.AdvertisementThe logic that once fueled a generation of digital-first growth collapsed overnight.So it wasn’t just tech experiencing effects. From 1954 until 2022, the U.S. tax code had encouraged businesses of all stripes to behave like tech companies. From retail to logistics, healthcare to media, if firms built internal tools, customized a software stack, or invested in business intelligence and data-driven product development, they could expense those costs. The write-off incentivized in-house builds and fast growth well outside the capital-T tech sector. This lines up with OECD research showing that immediate deductions foster innovation more than spread-out ones.And American companies ran with that logic. According to government data, U.S. businesses reported about billion in R&D expenditures in 2019 alone, and almost half of that came from industries outside traditional tech. The Bureau of Economic Analysis estimates that this sector, the broader digital economy, accounts for another 10% of GDP.Add that to core tech’s contribution, and the Section 174 shift has likely touched at least 20% of the U.S. economy.AdvertisementThe result? A tax policy aimed at raising short-term revenue effectively hid a time bomb inside the growth engines of thousands of companies. And when it detonated, it kneecapped the incentive for hiring American engineers or investing in American-made tech and digital products.It made building tech companies in America look irrational on a spreadsheet.A bipartisan group of lawmakers is pushing to repeal the Section 174 change, with business groups, CFOs, crypto executives, and venture capitalists lobbying hard for retroactive relief. But the politics are messy. Fixing 174 would mean handing a tax break to the same companies many voters in both parties see as symbols of corporate excess. Any repeal would also come too late for the hundreds of thousands of workers already laid off.And of course, the losses don’t stop at Meta’s or Google’s campus gates. They ripple out. When high-paid tech workers disappear, so do the lunch orders. The house tours. The contract gigs. The spending habits that sustain entire urban economies and thousands of other jobs. Sandwich artists. Rideshare drivers. Realtors. Personal trainers. House cleaners. In tech-heavy cities, the fallout runs deep — and it’s still unfolding.AdvertisementWashington is now poised to pass a second Trump tax bill — one packed with more obscure provisions, more delayed impacts, more quiet redistribution. And it comes as analysts are only just beginning to understand the real-world effects of the last round.The Section 174 change “significantly increased the tax burden on companies investing in innovation, potentially stifling economic growth and reducing the United States’ competitiveness on the global stage,” according to the tax consulting firm KBKG. Whether the U.S. will reverse course — or simply adapt to a new normal — remains to be seen. #hidden #time #bomb #tax #code
    QZ.COM
    The hidden time bomb in the tax code that's fueling mass tech layoffs: A decades-old tax rule helped build America's tech economy. A quiet change under Trump helped dismantle it
    For the past two years, it’s been a ghost in the machine of American tech. Between 2022 and today, a little-noticed tweak to the U.S. tax code has quietly rewired the financial logic of how American companies invest in research and development. Outside of CFO and accounting circles, almost no one knew it existed. “I work on these tax write-offs and still hadn’t heard about this,” a chief operating officer at a private-equity-backed tech company told Quartz. “It’s just been so weirdly silent.”AdvertisementStill, the delayed change to a decades-old tax provision — buried deep in the 2017 tax law — has contributed to the loss of hundreds of thousands of high-paying, white-collar jobs. That’s the picture that emerges from a review of corporate filings, public financial data, analysis of timelines, and interviews with industry insiders. One accountant, working in-house at a tech company, described it as a “niche issue with broad impact,” echoing sentiments from venture capital investors also interviewed for this article. Some spoke on condition of anonymity to discuss sensitive political matters.Since the start of 2023, more than half-a-million tech workers have been laid off, according to industry tallies. Headlines have blamed over-hiring during the pandemic and, more recently, AI. But beneath the surface was a hidden accelerant: a change to what’s known as Section 174 that helped gut in-house software and product development teams everywhere from tech giants such as Microsoft (MSFT) and Meta (META) to much smaller, private, direct-to-consumer and other internet-first companies.Now, as a bipartisan effort to repeal the Section 174 change moves through Congress, bigger questions are surfacing: How did a single line in the tax code help trigger a tsunami of mass layoffs? And why did no one see it coming? For almost 70 years, American companies could deduct 100% of qualified research and development spending in the year they incurred the costs. Salaries, software, contractor payments — if it contributed to creating or improving a product, it came off the top of a firm’s taxable income.AdvertisementThe deduction was guaranteed by Section 174 of the IRS Code of 1954, and under the provision, R&D flourished in the U.S.Microsoft was founded in 1975. Apple (AAPL) launched its first computer in 1976. Google (GOOGL) incorporated in 1998. Facebook opened to the general public in 2006. All these companies, now among the most valuable in the world, developed their earliest products — programming tools, hardware, search engines — under a tax system that rewarded building now, not later.The subsequent rise of smartphones, cloud computing, and mobile apps also happened in an America where companies could immediately write off their investments in engineering, infrastructure, and experimentation. It was a baseline assumption — innovation and risk-taking subsidized by the tax code — that shaped how founders operated and how investors made decisions.In turn, tech companies largely built their products in the U.S. AdvertisementMicrosoft’s operating systems were coded in Washington state. Apple’s early hardware and software teams were in California. Google’s search engine was born at Stanford and scaled from Mountain View. Facebook’s entire social architecture was developed in Menlo Park. The deduction directly incentivized keeping R&D close to home, rewarding companies for investing in American workers, engineers, and infrastructure.That’s what makes the politics of Section 174 so revealing. For all the rhetoric about bringing jobs back and making things in America, the first Trump administration’s major tax bill arguably helped accomplish the opposite.When Congress passed the Tax Cuts and Jobs Act (TCJA), the signature legislative achievement of President Donald Trump’s first term, it slashed the corporate tax rate from 35% to 21% — a massive revenue loss on paper for the federal government.To make the 2017 bill comply with Senate budget rules, lawmakers needed to offset the cost. So they added future tax hikes that wouldn’t kick in right away, wouldn’t provoke immediate backlash from businesses, and could, in theory, be quietly repealed later.AdvertisementThe delayed change to Section 174 — from immediate expensing of R&D to mandatory amortization, meaning that companies must spread the deduction out in smaller chunks over five or even 15-year periods — was that kind of provision. It didn’t start affecting the budget until 2022, but it helped the TCJA appear “deficit neutral” over the 10-year window used for legislative scoring.The delay wasn’t a technical necessity. It was a political tactic. Such moves are common in tax legislation. Phase-ins and delayed provisions let lawmakers game how the Congressional Budget Office (CBO) — Congress’ nonpartisan analyst of how bills impact budgets and deficits — scores legislation, pushing costs or revenue losses outside official forecasting windows.And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. The tax benefits of salaries for engineers, product and project managers, data scientists, and even some user experience and marketing staff — all of which had previously reduced taxable income in year one — now had to be spread out over five- or 15-year periods. To understand the impact, imagine a personal tax code change that allowed you to deduct 100% of your biggest source of expenses, and that becoming a 20% deduction. For cash-strapped companies, especially those not yet profitable, the result was a painful tax bill just as venture funding dried up and interest rates soared.AdvertisementSalesforce office buildings in San Francisco.Photo: Jason Henry/Bloomberg (Getty Images)It’s no coincidence that Meta announced its “Year of Efficiency” immediately after the Section 174 change took effect. Ditto Microsoft laying off 10,000 employees in January 2023 despite strong earnings, or Google parent Alphabet cutting 12,000 jobs around the same time.Amazon (AMZN) also laid off almost 30,000 people, with cuts focused not just on logistics but on Alexa and internal cloud tools — precisely the kinds of projects that would have once qualified as immediately deductible R&D. Salesforce (CRM) eliminated 10% of its staff, or 8,000 people, including entire product teams.In public, companies blamed bloat and AI. But inside boardrooms, spreadsheets were telling a quieter story. And MD&A notes — management’s notes on the numbers — buried deep in 10-K filings recorded the change, too. R&D had become more expensive to carry. Headcount, the leading R&D expense across the tech industry, was the easiest thing to cut.AdvertisementIn its 2023 annual report, Meta described salaries as its single biggest R&D expense. Between the first and second years that the Section 174 change began affecting tax returns, Meta cut its total workforce by almost 25%. Over the same period, Microsoft reduced its global headcount by about 7%, with cuts concentrated in product-facing, engineering-heavy roles.Smaller companies without the fortress-like balance sheets of Big Tech have arguably been hit even harder. Twilio (TWLO) slashed 22% of its workforce in 2023 alone. Shopify (SHOP) (headquartered in Canada but with much of its R&D teams in the U.S.) cut almost 30% of staff in 2022 and 2023. Coinbase (COIN) reduced headcount by 36% across a pair of brutal restructuring waves.Since going into effect, the provision has hit at the very heart of America’s economic growth engine: the tech sector.By market cap, tech giants dominate the S&P 500, with the “Magnificent 7” alone accounting for more than a third of the index’s total value. Workforce numbers tell a similar story, with tech employing millions of Americans directly and supporting the employment of tens of millions more. As measured by GDP, capital-T tech contributes about 10% of national output.AdvertisementIt’s not just that tech layoffs were large, it’s that they were massively disproportionate. Across the broader U.S. economy, job cuts hovered around in low single digits across most sectors. But in tech, entire divisions vanished, with a whopping 60% jump in layoffs between 2022 and 2023. Some cuts reflected real inefficiencies — a response to over-hiring during the zero-interest rate boom. At the same time, many of the roles eliminated were in R&D, product, and engineering, precisely the kind of functions that had once benefitted from generous tax treatment under Section 174.Throughout the 2010s, a broad swath of startups, direct-to-consumer brands, and internet-first firms — basically every company you recognize from Instagram or Facebook ads — built their growth models around a kind of engineered break-even.The tax code allowed them to spend aggressively on product and engineering, then write it all off as R&D, keeping their taxable income close to zero by design. It worked because taxable income and actual cash flow were often notGAAP accounting practices. Basically, as long as spending counted as R&D, companies could report losses to investors while owing almost nothing to the IRS.But the Section 174 change broke that model. Once those same expenses had to be spread out, or amortized, over multiple years, the tax shield vanished. Companies that were still burning cash suddenly looked profitable on paper, triggering real tax bills on imaginary gains.AdvertisementThe logic that once fueled a generation of digital-first growth collapsed overnight.So it wasn’t just tech experiencing effects. From 1954 until 2022, the U.S. tax code had encouraged businesses of all stripes to behave like tech companies. From retail to logistics, healthcare to media, if firms built internal tools, customized a software stack, or invested in business intelligence and data-driven product development, they could expense those costs. The write-off incentivized in-house builds and fast growth well outside the capital-T tech sector. This lines up with OECD research showing that immediate deductions foster innovation more than spread-out ones.And American companies ran with that logic. According to government data, U.S. businesses reported about $500 billion in R&D expenditures in 2019 alone, and almost half of that came from industries outside traditional tech. The Bureau of Economic Analysis estimates that this sector, the broader digital economy, accounts for another 10% of GDP.Add that to core tech’s contribution, and the Section 174 shift has likely touched at least 20% of the U.S. economy.AdvertisementThe result? A tax policy aimed at raising short-term revenue effectively hid a time bomb inside the growth engines of thousands of companies. And when it detonated, it kneecapped the incentive for hiring American engineers or investing in American-made tech and digital products.It made building tech companies in America look irrational on a spreadsheet.A bipartisan group of lawmakers is pushing to repeal the Section 174 change, with business groups, CFOs, crypto executives, and venture capitalists lobbying hard for retroactive relief. But the politics are messy. Fixing 174 would mean handing a tax break to the same companies many voters in both parties see as symbols of corporate excess. Any repeal would also come too late for the hundreds of thousands of workers already laid off.And of course, the losses don’t stop at Meta’s or Google’s campus gates. They ripple out. When high-paid tech workers disappear, so do the lunch orders. The house tours. The contract gigs. The spending habits that sustain entire urban economies and thousands of other jobs. Sandwich artists. Rideshare drivers. Realtors. Personal trainers. House cleaners. In tech-heavy cities, the fallout runs deep — and it’s still unfolding.AdvertisementWashington is now poised to pass a second Trump tax bill — one packed with more obscure provisions, more delayed impacts, more quiet redistribution. And it comes as analysts are only just beginning to understand the real-world effects of the last round.The Section 174 change “significantly increased the tax burden on companies investing in innovation, potentially stifling economic growth and reducing the United States’ competitiveness on the global stage,” according to the tax consulting firm KBKG. Whether the U.S. will reverse course — or simply adapt to a new normal — remains to be seen.
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  • Nobody understands gambling, especially in video games

    In 2025, it’s very difficult not to see gambling advertised everywhere. It’s on billboards and sports broadcasts. It’s on podcasts and printed on the turnbuckle of AEW’s pay-per-view shows. And it’s on app stores, where you can find the FanDuel and DraftKings sportsbooks, alongside glitzy digital slot machines. These apps all have the highest age ratings possible on Apple’s App Store and Google Play. But earlier this year, a different kind of app nearly disappeared from the Play Store entirely.Luck Be A Landlord is a roguelite deckbuilder from solo developer Dan DiIorio. DiIorio got word from Google in January 2025 that Luck Be A Landlord was about to be pulled, globally, because DiIorio had not disclosed the game’s “gambling themes” in its rating.In Luck Be a Landlord, the player takes spins on a pixel art slot machine to earn coins to pay their ever-increasing rent — a nightmare gamification of our day-to-day grind to remain housed. On app stores, it’s a one-time purchase of and it’s on Steam. On the Play Store page, developer Dan DiIorio notes, “This game does not contain any real-world currency gambling or microtransactions.”And it doesn’t. But for Google, that didn’t matter. First, the game was removed from the storefront in a slew of countries that have strict gambling laws. Then, at the beginning of 2025, Google told Dilorio that Luck Be A Landlord would be pulled globally because of its rating discrepancy, as it “does not take into account references to gambling”.DiIorio had gone through this song and dance before — previously, when the game was blocked, he would send back a message saying “hey, the game doesn’t have gambling,” and then Google would send back a screenshot of the game and assert that, in fact, it had.DiIorio didn’t agree, but this time they decided that the risk of Landlord getting taken down permanently was too great. They’re a solo developer, and Luck Be a Landlord had just had its highest 30-day revenue since release. So, they filled out the form confirming that Luck Be A Landlord has “gambling themes,” and are currently hoping that this will be the end of it.This is a situation that sucks for an indie dev to be in, and over email DiIorio told Polygon it was “very frustrating.”“I think it can negatively affect indie developers if they fall outside the norm, which indies often do,” they wrote. “It also makes me afraid to explore mechanics like this further. It stifles creativity, and that’s really upsetting.”In late 2024, the hit game Balatro was in a similar position. It had won numerous awards, and made in its first week on mobile platforms. And then overnight, the PEGI ratings board declared that the game deserved an adult rating.The ESRB had already rated it E10+ in the US, noting it has gambling themes. And the game was already out in Europe, making its overnight ratings change a surprise. Publisher PlayStack said the rating was given because Balatro has “prominent gambling imagery and material that instructs about gambling.”Balatro is basically Luck Be A Landlord’s little cousin. Developer LocalThunk was inspired by watching streams of Luck Be A Landlord, and seeing the way DiIorio had implemented deck-building into his slot machine. And like Luck Be A Landlord, Balatro is a one-time purchase, with no microtransactions.But the PEGI board noted that because the game uses poker hands, the skills the player learns in Balatro could translate to real-world poker.In its write-up, GameSpot noted that the same thing happened to a game called Sunshine Shuffle. It was temporarily banned from the Nintendo eShop, and also from the entire country of South Korea. Unlike Balatro, Sunshine Shuffle actually is a poker game, except you’re playing Texas Hold ‘Em — again for no real money — with cute animals.It’s common sense that children shouldn’t be able to access apps that allow them to gamble. But none of these games contain actual gambling — or do they?Where do we draw the line? Is it gambling to play any game that is also played in casinos, like poker or blackjack? Is it gambling to play a game that evokes the aesthetics of a casino, like cards, chips, dice, or slot machines? Is it gambling to wager or earn fictional money?Gaming has always been a lightning rod for controversy. Sex, violence, misogyny, addiction — you name it, video games have been accused of perpetrating or encouraging it. But gambling is gaming’s original sin. And it’s the one we still can’t get a grip on.The original link between gambling and gamingGetty ImagesThe association between video games and gambling all goes back to pinball. Back in the ’30s and ’40s, politicians targeted pinball machines for promoting gambling. Early pinball machines were less skill-based, and some gave cash payouts, so the comparison wasn’t unfair. Famously, mob-hating New York City mayor Fiorello LaGuardia banned pinball in the city, and appeared in a newsreel dumping pinball and slot machines into the Long Island Sound. Pinball machines spent some time relegated to the back rooms of sex shops and dive bars. But after some lobbying, the laws relaxed.By the 1970s, pinball manufacturers were also making video games, and the machines were side-by-side in arcades. Arcade machines, like pinball, took small coin payments, repeatedly, for short rounds of play. The disreputable funk of pinball basically rubbed off onto video games.Ever since video games rocked onto the scene, concerned and sometimes uneducated parties have been asking if they’re dangerous. And in general, studies have shown that they’re not. The same can’t be said about gambling — the practice of putting real money down to bet on an outcome.It’s a golden age for gambling2025 in the USA is a great time for gambling, which has been really profitable for gambling companies — to the tune of billion dollars of revenue in 2023.To put this number in perspective, the American Gaming Association, which is the casino industry’s trade group and has nothing to do with video games, reports that 2022’s gambling revenue was billion. It went up billion in a year.And this increase isn’t just because of sportsbooks, although sports betting is a huge part of it. Online casinos and brick-and-mortar casinos are both earning more, and as a lot of people have pointed out, gambling is being normalized to a pretty disturbing degree.Much like with alcohol, for a small percentage of people, gambling can tip from occasional leisure activity into addiction. The people who are most at risk are, by and large, already vulnerable: researchers at the Yale School of Medicine found that 96% of problem gamblers are also wrestling with other disorders, such as “substance use, impulse-control disorders, mood disorders, and anxiety disorders.”Even if you’re not in that group, there are still good reasons to be wary of gambling. People tend to underestimate their own vulnerability to things they know are dangerous for others. Someone else might bet beyond their means. But I would simply know when to stop.Maybe you do! But being blithely confident about it can make it hard to notice if you do develop a problem. Or if you already have one.Addiction changes the way your brain works. When you’re addicted to something, your participation in it becomes compulsive, at the expense of other interests and responsibilities. Someone might turn to their addiction to self-soothe when depressed or anxious. And speaking of those feelings, people who are depressed and anxious are already more vulnerable to addiction. Given the entire state of the world right now, this predisposition shines an ugly light on the numbers touted by the AGA. Is it good that the industry is reporting billion in additional earnings, when the economy feels so frail, when the stock market is ping ponging through highs and lows daily, when daily expenses are rising? It doesn’t feel good. In 2024, the YouTuber Drew Gooden turned his critical eye to online gambling. One of the main points he makes in his excellent video is that gambling is more accessible than ever. It’s on all our phones, and betting companies are using decades of well-honed app design and behavioral studies to manipulate users to spend and spend.Meanwhile, advertising on podcasts, billboards, TV, radio, and websites – it’s literally everywhere — tells you that this is fun, and you don’t even need to know what you’re doing, and you’re probably one bet away from winning back those losses.Where does Luck Be a Landlord come into this?So, are there gambling themes in Luck Be A Landlord? The game’s slot machine is represented in simple pixel art. You pay one coin to use it, and among the more traditional slot machine symbols are silly ones like a snail that only pays out after 4 spins.When I started playing it, my primary emotion wasn’t necessarily elation at winning coins — it was stress and disbelief when, in the third round of the game, the landlord increased my rent by 100%. What the hell.I don’t doubt that getting better at it would produce dopamine thrills akin to gambling — or playing any video game. But it’s supposed to be difficult, because that’s the joke. If you beat the game you unlock more difficulty modes where, as you keep paying rent, your landlord gets furious, and starts throwing made-up rules at you: previously rare symbols will give you less of a payout, and the very mechanics of the slot machine change.It’s a manifestation of the golden rule of casinos, and all of capitalism writ large: the odds are stacked against you. The house always wins. There is luck involved, to be sure, but because Luck Be A Landlord is a deck-builder, knowing the different ways you can design your slot machine to maximize payouts is a skill! You have some influence over it, unlike a real slot machine. The synergies that I’ve seen high-level players create are completely nuts, and obviously based on a deep understanding of the strategies the game allows.IMAGE: TrampolineTales via PolygonBalatro and Luck Be a Landlord both distance themselves from casino gambling again in the way they treat money. In Landlord, the money you earn is gold coins, not any currency we recognize. And the payouts aren’t actually that big. By the end of the core game, the rent money you’re struggling and scraping to earn… is 777 coins. In the post-game endless mode, payouts can get massive. But the thing is, to get this far, you can’t rely on chance. You have to be very good at Luck Be a Landlord.And in Balatro, the numbers that get big are your points. The actual dollar payments in a round of Balatro are small. These aren’t games about earning wads and wads of cash. So, do these count as “gambling themes”?We’ll come back to that question later. First, I want to talk about a closer analog to what we colloquially consider gambling: loot boxes and gacha games.Random rewards: from Overwatch to the rise of gachaRecently, I did something that I haven’t done in a really long time: I thought about Overwatch. I used to play Overwatch with my friends, and I absolutely made a habit of dropping 20 bucks here or there for a bunch of seasonal loot boxes. This was never a problem behavior for me, but in hindsight, it does sting that over a couple of years, I dropped maybe on cosmetics for a game that now I primarily associate with squandered potential.Loot boxes grew out of free-to-play mobile games, where they’re the primary method of monetization. In something like Overwatch, they functioned as a way to earn additional revenue in an ongoing game, once the player had already dropped 40 bucks to buy it.More often than not, loot boxes are a random selection of skins and other cosmetics, but games like Star Wars: Battlefront 2 were famously criticized for launching with loot crates that essentially made it pay-to-win – if you bought enough of them and got lucky.It’s not unprecedented to associate loot boxes with gambling. A 2021 study published in Addictive Behaviors showed that players who self-reported as problem gamblers also tended to spend more on loot boxes, and another study done in the UK found a similar correlation with young adults.While Overwatch certainly wasn’t the first game to feature cosmetic loot boxes or microtransactions, it’s a reference point for me, and it also got attention worldwide. In 2018, Overwatch was investigated by the Belgian Gaming Commission, which found it “in violation of gambling legislation” alongside FIFA 18 and Counter-Strike: Global Offensive. Belgium’s response was to ban the sale of loot boxes without a gambling license. Having a paid random rewards mechanic in a game is a criminal offense there. But not really. A 2023 study showed that 82% of iPhone games sold on the App Store in Belgium still use random paid monetization, as do around 80% of games that are rated 12+. The ban wasn’t effectively enforced, if at all, and the study recommends that a blanket ban wouldn’t actually be a practical solution anyway.Overwatch was rated T for Teen by the ESRB, and 12 by PEGI. When it first came out, its loot boxes were divisive. Since the mechanic came from F2P mobile games, which are often seen as predatory, people balked at seeing it in a big action game from a multi-million dollar publisher.At the time, the rebuttal was, “Well, at least it’s just cosmetics.” Nobody needs to buy loot boxes to be good at Overwatch.A lot has changed since 2016. Now we have a deeper understanding of how these mechanics are designed to manipulate players, even if they don’t affect gameplay. But also, they’ve been normalized. While there will always be people expressing disappointment when a AAA game has a paid random loot mechanic, it is no longer shocking.And if anything, these mechanics have only become more prevalent, thanks to the growth of gacha games. Gacha is short for “gachapon,” the Japanese capsule machines where you pay to receive one of a selection of random toys. Getty ImagesIn gacha games, players pay — not necessarily real money, but we’ll get to that — for a chance to get something. Maybe it’s a character, or a special weapon, or some gear — it depends on the game. Whatever it is, within that context, it’s desirable — and unlike the cosmetics of Overwatch, gacha pulls often do impact the gameplay.For example, in Infinity Nikki, you can pull for clothing items in these limited-time events. You have a chance to get pieces of a five-star outfit. But you also might pull one of a set of four-star items, or a permanent three-star piece. Of course, if you want all ten pieces of the five-star outfit, you have to do multiple pulls, each costing a handful of limited resources that you can earn in-game or purchase with money.Gacha was a fixture of mobile gaming for a long time, but in recent years, we’ve seen it go AAA, and global. MiHoYo’s Genshin Impact did a lot of that work when it came out worldwide on consoles and PC alongside its mobile release. Genshin and its successors are massive AAA games of a scale that, for your Nintendos and Ubisofts, would necessitate selling a bajillion copies to be a success. And they’re free.Genshin is an action game, whose playstyle changes depending on what character you’re playing — characters you get from gacha pulls, of course. In Zenless Zone Zero, the characters you can pull have different combo patterns, do different kinds of damage, and just feel different to play. And whereas in an early mobile gacha game like Love Nikki Dress UP! Queen the world was rudimentary, its modern descendant Infinity Nikki is, like Genshin, Breath of the Wild-esque. It is a massive open world, with collectibles and physics puzzles, platforming challenges, and a surprisingly involved storyline. Genshin Impact was the subject of an interesting study where researchers asked young adults in Hong Kong to self-report on their gacha spending habits. They found that, like with gambling, players who are not feeling good tend to spend more. “Young adult gacha gamers experiencing greater stress and anxiety tend to spend more on gacha purchases, have more motives for gacha purchases, and participate in more gambling activities,” they wrote. “This group is at a particularly higher risk of becoming problem gamblers.”One thing that is important to note is that Genshin Impact came out in 2020. The study was self-reported, and it was done during the early stages of the COVID-19 pandemic. It was a time when people were experiencing a lot of stress, and also fewer options to relieve that stress. We were all stuck inside gaming.But the fact that stress can make people more likely to spend money on gacha shows that while the gacha model isn’t necessarily harmful to everyone, it is exploitative to everyone. Since I started writing this story, another self-reported study came out in Japan, where 18.8% of people in their 20s say they’ve spent money on gacha rather than on things like food or rent.Following Genshin Impact’s release, MiHoYo put out Honkai: Star Rail and Zenless Zone Zero. All are shiny, big-budget games that are free to play, but dangle the lure of making just one purchase in front of the player. Maybe you could drop five bucks on a handful of in-game currency to get one more pull. Or maybe just this month you’ll get the second tier of rewards on the game’s equivalent of a Battle Pass. The game is free, after all — but haven’t you enjoyed at least ten dollars’ worth of gameplay? Image: HoyoverseI spent most of my December throwing myself into Infinity Nikki. I had been so stressed, and the game was so soothing. I logged in daily to fulfill my daily wishes and earn my XP, diamonds, Threads of Purity, and bling. I accumulated massive amounts of resources. I haven’t spent money on the game. I’m trying not to, and so far, it’s been pretty easy. I’ve been super happy with how much stuff I can get for free, and how much I can do! I actually feel really good about that — which is what I said to my boyfriend, and he replied, “Yeah, that’s the point. That’s how they get you.”And he’s right. Currently, Infinity Nikki players are embroiled in a war with developer Infold, after Infold introduced yet another currency type with deep ties to Nikki’s gacha system. Every one of these gacha games has its own tangled system of overlapping currencies. Some can only be used on gacha pulls. Some can only be used to upgrade items. Many of them can be purchased with human money.Image: InFold Games/Papergames via PolygonAll of this adds up. According to Sensor Towers’ data, Genshin Impact earned over 36 million dollars on mobile alone in a single month of 2024. I don’t know what Dan DiIorio’s peak monthly revenue for Luck Be A Landlord was, but I’m pretty sure it wasn’t that.A lot of the spending guardrails we see in games like these are actually the result of regulations in other territories, especially China, where gacha has been a big deal for a lot longer. For example, gacha games have a daily limit on loot boxes, with the number clearly displayed, and a system collectively called “pity,” where getting the banner item is guaranteed after a certain number of pulls. Lastly, developers have to be clear about what the odds are. When I log in to spend the Revelation Crystals I’ve spent weeks hoarding in my F2P Infinity Nikki experience, I know that I have a 1.5% chance of pulling a 5-star piece, and that the odds can go up to 6.06%, and that I am guaranteed to get one within 20 pulls, because of the pity system.So, these odds are awful. But it is not as merciless as sitting down at a Vegas slot machine, an experience best described as “oh… that’s it?”There’s not a huge philosophical difference between buying a pack of loot boxes in Overwatch, a pull in Genshin Impact, or even a booster of Pokémon cards. You put in money, you get back randomized stuff that may or may not be what you want. In the dictionary definition, it’s a gamble. But unlike the slot machine, it’s not like you’re trying to win money by doing it, unless you’re selling those Pokémon cards, which is a topic for another time.But since even a game where you don’t get anything, like Balatro or Luck Be A Landlord, can come under fire for promoting gambling to kids, it would seem appropriate for app stores and ratings boards to take a similarly hardline stance with gacha.Instead, all these games are rated T for Teen by the ESRB, and PEGI 12 in the EU.The ESRB ratings for these games note that they contain in-game purchases, including random items. Honkai: Star Rail’s rating specifically calls out a slot machine mechanic, where players spend tokens to win a prize. But other than calling out Honkai’s slot machine, app stores are not slapping Genshin or Nikki with an 18+ rating. Meanwhile, Balatro had a PEGI rating of 18 until a successful appeal in February 2025, and Luck Be a Landlord is still 17+ on Apple’s App Store.Nobody knows what they’re doingWhen I started researching this piece, I felt very strongly that it was absurd that Luck Be A Landlord and Balatro had age ratings this high.I still believe that the way both devs have been treated by ratings boards is bad. Threatening an indie dev with a significant loss of income by pulling their game is bad, not giving them a way to defend themself or help them understand why it’s happening is even worse. It’s an extension of the general way that too-big-to-fail companies like Google treat all their customers.DiIorio told me that while it felt like a human being had at least looked at Luck Be A Landlord to make the determination that it contained gambling themes, the emails he was getting were automatic, and he doesn’t have a contact at Google to ask why this happened or how he can avoid it in the future — an experience that will be familiar to anyone who has ever needed Google support. But what’s changed for me is that I’m not actually sure anymore that games that don’t have gambling should be completely let off the hook for evoking gambling.Exposing teens to simulated gambling without financial stakes could spark an interest in the real thing later on, according to a study in the International Journal of Environmental Research and Public Health. It’s the same reason you can’t mosey down to the drug store to buy candy cigarettes. Multiple studies were done that showed kids who ate candy cigarettes were more likely to take up smokingSo while I still think rating something like Balatro 18+ is nuts, I also think that describing it appropriately might be reasonable. As a game, it’s completely divorced from literally any kind of play you would find in a casino — but I can see the concern that the thrill of flashy numbers and the shiny cards might encourage young players to try their hand at poker in a real casino, where a real house can take their money.Maybe what’s more important than doling out high age ratings is helping people think about how media can affect us. In the same way that, when I was 12 and obsessed with The Matrix, my parents gently made sure that I knew that none of the violence was real and you can’t actually cartwheel through a hail of bullets in real life. Thanks, mom and dad!But that’s an answer that’s a lot more abstract and difficult to implement than a big red 18+ banner. When it comes to gacha, I think we’re even less equipped to talk about these game mechanics, and I’m certain they’re not being age-rated appropriately. On the one hand, like I said earlier, gacha exploits the player’s desire for stuff that they are heavily manipulated to buy with real money. On the other hand, I think it’s worth acknowledging that there is a difference between gacha and casino gambling.Problem gamblers aren’t satisfied by winning — the thing they’re addicted to is playing, and the risk that comes with it. In gacha games, players do report satisfaction when they achieve the prize they set out to get. And yes, in the game’s next season, the developer will be dangling a shiny new prize in front of them with the goal of starting the cycle over. But I think it’s fair to make the distinction, while still being highly critical of the model.And right now, there is close to no incentive for app stores to crack down on gacha in any way. They get a cut of in-app purchases. Back in 2023, miHoYo tried a couple of times to set up payment systems that circumvented Apple’s 30% cut of in-app spending. Both times, it was thwarted by Apple, whose App Store generated trillion in developer billings and sales in 2022.According to Apple itself, 90% of that money did not include any commission to Apple. Fortunately for Apple, ten percent of a trillion dollars is still one hundred billion dollars, which I would also like to have in my bank account. Apple has zero reason to curb spending on games that have been earning millions of dollars every month for years.And despite the popularity of Luck Be A Landlord and Balatro’s massive App Store success, these games will never be as lucrative. They’re one-time purchases, and they don’t have microtransactions. To add insult to injury, like most popular games, Luck Be A Landlord has a lot of clones. And from what I can tell, it doesn’t look like any of them have been made to indicate that their games contain the dreaded “gambling themes” that Google was so worried about in Landlord.In particular, a game called SpinCraft: Roguelike from Sneaky Panda Games raised million in seed funding for “inventing the Luck-Puzzler genre,” which it introduced in 2022, while Luck Be A Landlord went into early access in 2021.It’s free-to-play, has ads and in-app purchases, looks like Fisher Price made a slot machine, and it’s rated E for everyone, with no mention of gambling imagery in its rating. I reached out to the developers to ask if they had also been contacted by the Play Store to disclose that their game has gambling themes, but I haven’t heard back.Borrowing mechanics in games is as old as time, and it’s something I in no way want to imply shouldn’t happen because copyright is the killer of invention — but I think we can all agree that the system is broken.There is no consistency in how games with random chance are treated. We still do not know how to talk about gambling, or gambling themes, and at the end of the day, the results of this are the same: the house always wins.See More:
    #nobody #understands #gambling #especially #video
    Nobody understands gambling, especially in video games
    In 2025, it’s very difficult not to see gambling advertised everywhere. It’s on billboards and sports broadcasts. It’s on podcasts and printed on the turnbuckle of AEW’s pay-per-view shows. And it’s on app stores, where you can find the FanDuel and DraftKings sportsbooks, alongside glitzy digital slot machines. These apps all have the highest age ratings possible on Apple’s App Store and Google Play. But earlier this year, a different kind of app nearly disappeared from the Play Store entirely.Luck Be A Landlord is a roguelite deckbuilder from solo developer Dan DiIorio. DiIorio got word from Google in January 2025 that Luck Be A Landlord was about to be pulled, globally, because DiIorio had not disclosed the game’s “gambling themes” in its rating.In Luck Be a Landlord, the player takes spins on a pixel art slot machine to earn coins to pay their ever-increasing rent — a nightmare gamification of our day-to-day grind to remain housed. On app stores, it’s a one-time purchase of and it’s on Steam. On the Play Store page, developer Dan DiIorio notes, “This game does not contain any real-world currency gambling or microtransactions.”And it doesn’t. But for Google, that didn’t matter. First, the game was removed from the storefront in a slew of countries that have strict gambling laws. Then, at the beginning of 2025, Google told Dilorio that Luck Be A Landlord would be pulled globally because of its rating discrepancy, as it “does not take into account references to gambling”.DiIorio had gone through this song and dance before — previously, when the game was blocked, he would send back a message saying “hey, the game doesn’t have gambling,” and then Google would send back a screenshot of the game and assert that, in fact, it had.DiIorio didn’t agree, but this time they decided that the risk of Landlord getting taken down permanently was too great. They’re a solo developer, and Luck Be a Landlord had just had its highest 30-day revenue since release. So, they filled out the form confirming that Luck Be A Landlord has “gambling themes,” and are currently hoping that this will be the end of it.This is a situation that sucks for an indie dev to be in, and over email DiIorio told Polygon it was “very frustrating.”“I think it can negatively affect indie developers if they fall outside the norm, which indies often do,” they wrote. “It also makes me afraid to explore mechanics like this further. It stifles creativity, and that’s really upsetting.”In late 2024, the hit game Balatro was in a similar position. It had won numerous awards, and made in its first week on mobile platforms. And then overnight, the PEGI ratings board declared that the game deserved an adult rating.The ESRB had already rated it E10+ in the US, noting it has gambling themes. And the game was already out in Europe, making its overnight ratings change a surprise. Publisher PlayStack said the rating was given because Balatro has “prominent gambling imagery and material that instructs about gambling.”Balatro is basically Luck Be A Landlord’s little cousin. Developer LocalThunk was inspired by watching streams of Luck Be A Landlord, and seeing the way DiIorio had implemented deck-building into his slot machine. And like Luck Be A Landlord, Balatro is a one-time purchase, with no microtransactions.But the PEGI board noted that because the game uses poker hands, the skills the player learns in Balatro could translate to real-world poker.In its write-up, GameSpot noted that the same thing happened to a game called Sunshine Shuffle. It was temporarily banned from the Nintendo eShop, and also from the entire country of South Korea. Unlike Balatro, Sunshine Shuffle actually is a poker game, except you’re playing Texas Hold ‘Em — again for no real money — with cute animals.It’s common sense that children shouldn’t be able to access apps that allow them to gamble. But none of these games contain actual gambling — or do they?Where do we draw the line? Is it gambling to play any game that is also played in casinos, like poker or blackjack? Is it gambling to play a game that evokes the aesthetics of a casino, like cards, chips, dice, or slot machines? Is it gambling to wager or earn fictional money?Gaming has always been a lightning rod for controversy. Sex, violence, misogyny, addiction — you name it, video games have been accused of perpetrating or encouraging it. But gambling is gaming’s original sin. And it’s the one we still can’t get a grip on.The original link between gambling and gamingGetty ImagesThe association between video games and gambling all goes back to pinball. Back in the ’30s and ’40s, politicians targeted pinball machines for promoting gambling. Early pinball machines were less skill-based, and some gave cash payouts, so the comparison wasn’t unfair. Famously, mob-hating New York City mayor Fiorello LaGuardia banned pinball in the city, and appeared in a newsreel dumping pinball and slot machines into the Long Island Sound. Pinball machines spent some time relegated to the back rooms of sex shops and dive bars. But after some lobbying, the laws relaxed.By the 1970s, pinball manufacturers were also making video games, and the machines were side-by-side in arcades. Arcade machines, like pinball, took small coin payments, repeatedly, for short rounds of play. The disreputable funk of pinball basically rubbed off onto video games.Ever since video games rocked onto the scene, concerned and sometimes uneducated parties have been asking if they’re dangerous. And in general, studies have shown that they’re not. The same can’t be said about gambling — the practice of putting real money down to bet on an outcome.It’s a golden age for gambling2025 in the USA is a great time for gambling, which has been really profitable for gambling companies — to the tune of billion dollars of revenue in 2023.To put this number in perspective, the American Gaming Association, which is the casino industry’s trade group and has nothing to do with video games, reports that 2022’s gambling revenue was billion. It went up billion in a year.And this increase isn’t just because of sportsbooks, although sports betting is a huge part of it. Online casinos and brick-and-mortar casinos are both earning more, and as a lot of people have pointed out, gambling is being normalized to a pretty disturbing degree.Much like with alcohol, for a small percentage of people, gambling can tip from occasional leisure activity into addiction. The people who are most at risk are, by and large, already vulnerable: researchers at the Yale School of Medicine found that 96% of problem gamblers are also wrestling with other disorders, such as “substance use, impulse-control disorders, mood disorders, and anxiety disorders.”Even if you’re not in that group, there are still good reasons to be wary of gambling. People tend to underestimate their own vulnerability to things they know are dangerous for others. Someone else might bet beyond their means. But I would simply know when to stop.Maybe you do! But being blithely confident about it can make it hard to notice if you do develop a problem. Or if you already have one.Addiction changes the way your brain works. When you’re addicted to something, your participation in it becomes compulsive, at the expense of other interests and responsibilities. Someone might turn to their addiction to self-soothe when depressed or anxious. And speaking of those feelings, people who are depressed and anxious are already more vulnerable to addiction. Given the entire state of the world right now, this predisposition shines an ugly light on the numbers touted by the AGA. Is it good that the industry is reporting billion in additional earnings, when the economy feels so frail, when the stock market is ping ponging through highs and lows daily, when daily expenses are rising? It doesn’t feel good. In 2024, the YouTuber Drew Gooden turned his critical eye to online gambling. One of the main points he makes in his excellent video is that gambling is more accessible than ever. It’s on all our phones, and betting companies are using decades of well-honed app design and behavioral studies to manipulate users to spend and spend.Meanwhile, advertising on podcasts, billboards, TV, radio, and websites – it’s literally everywhere — tells you that this is fun, and you don’t even need to know what you’re doing, and you’re probably one bet away from winning back those losses.Where does Luck Be a Landlord come into this?So, are there gambling themes in Luck Be A Landlord? The game’s slot machine is represented in simple pixel art. You pay one coin to use it, and among the more traditional slot machine symbols are silly ones like a snail that only pays out after 4 spins.When I started playing it, my primary emotion wasn’t necessarily elation at winning coins — it was stress and disbelief when, in the third round of the game, the landlord increased my rent by 100%. What the hell.I don’t doubt that getting better at it would produce dopamine thrills akin to gambling — or playing any video game. But it’s supposed to be difficult, because that’s the joke. If you beat the game you unlock more difficulty modes where, as you keep paying rent, your landlord gets furious, and starts throwing made-up rules at you: previously rare symbols will give you less of a payout, and the very mechanics of the slot machine change.It’s a manifestation of the golden rule of casinos, and all of capitalism writ large: the odds are stacked against you. The house always wins. There is luck involved, to be sure, but because Luck Be A Landlord is a deck-builder, knowing the different ways you can design your slot machine to maximize payouts is a skill! You have some influence over it, unlike a real slot machine. The synergies that I’ve seen high-level players create are completely nuts, and obviously based on a deep understanding of the strategies the game allows.IMAGE: TrampolineTales via PolygonBalatro and Luck Be a Landlord both distance themselves from casino gambling again in the way they treat money. In Landlord, the money you earn is gold coins, not any currency we recognize. And the payouts aren’t actually that big. By the end of the core game, the rent money you’re struggling and scraping to earn… is 777 coins. In the post-game endless mode, payouts can get massive. But the thing is, to get this far, you can’t rely on chance. You have to be very good at Luck Be a Landlord.And in Balatro, the numbers that get big are your points. The actual dollar payments in a round of Balatro are small. These aren’t games about earning wads and wads of cash. So, do these count as “gambling themes”?We’ll come back to that question later. First, I want to talk about a closer analog to what we colloquially consider gambling: loot boxes and gacha games.Random rewards: from Overwatch to the rise of gachaRecently, I did something that I haven’t done in a really long time: I thought about Overwatch. I used to play Overwatch with my friends, and I absolutely made a habit of dropping 20 bucks here or there for a bunch of seasonal loot boxes. This was never a problem behavior for me, but in hindsight, it does sting that over a couple of years, I dropped maybe on cosmetics for a game that now I primarily associate with squandered potential.Loot boxes grew out of free-to-play mobile games, where they’re the primary method of monetization. In something like Overwatch, they functioned as a way to earn additional revenue in an ongoing game, once the player had already dropped 40 bucks to buy it.More often than not, loot boxes are a random selection of skins and other cosmetics, but games like Star Wars: Battlefront 2 were famously criticized for launching with loot crates that essentially made it pay-to-win – if you bought enough of them and got lucky.It’s not unprecedented to associate loot boxes with gambling. A 2021 study published in Addictive Behaviors showed that players who self-reported as problem gamblers also tended to spend more on loot boxes, and another study done in the UK found a similar correlation with young adults.While Overwatch certainly wasn’t the first game to feature cosmetic loot boxes or microtransactions, it’s a reference point for me, and it also got attention worldwide. In 2018, Overwatch was investigated by the Belgian Gaming Commission, which found it “in violation of gambling legislation” alongside FIFA 18 and Counter-Strike: Global Offensive. Belgium’s response was to ban the sale of loot boxes without a gambling license. Having a paid random rewards mechanic in a game is a criminal offense there. But not really. A 2023 study showed that 82% of iPhone games sold on the App Store in Belgium still use random paid monetization, as do around 80% of games that are rated 12+. The ban wasn’t effectively enforced, if at all, and the study recommends that a blanket ban wouldn’t actually be a practical solution anyway.Overwatch was rated T for Teen by the ESRB, and 12 by PEGI. When it first came out, its loot boxes were divisive. Since the mechanic came from F2P mobile games, which are often seen as predatory, people balked at seeing it in a big action game from a multi-million dollar publisher.At the time, the rebuttal was, “Well, at least it’s just cosmetics.” Nobody needs to buy loot boxes to be good at Overwatch.A lot has changed since 2016. Now we have a deeper understanding of how these mechanics are designed to manipulate players, even if they don’t affect gameplay. But also, they’ve been normalized. While there will always be people expressing disappointment when a AAA game has a paid random loot mechanic, it is no longer shocking.And if anything, these mechanics have only become more prevalent, thanks to the growth of gacha games. Gacha is short for “gachapon,” the Japanese capsule machines where you pay to receive one of a selection of random toys. Getty ImagesIn gacha games, players pay — not necessarily real money, but we’ll get to that — for a chance to get something. Maybe it’s a character, or a special weapon, or some gear — it depends on the game. Whatever it is, within that context, it’s desirable — and unlike the cosmetics of Overwatch, gacha pulls often do impact the gameplay.For example, in Infinity Nikki, you can pull for clothing items in these limited-time events. You have a chance to get pieces of a five-star outfit. But you also might pull one of a set of four-star items, or a permanent three-star piece. Of course, if you want all ten pieces of the five-star outfit, you have to do multiple pulls, each costing a handful of limited resources that you can earn in-game or purchase with money.Gacha was a fixture of mobile gaming for a long time, but in recent years, we’ve seen it go AAA, and global. MiHoYo’s Genshin Impact did a lot of that work when it came out worldwide on consoles and PC alongside its mobile release. Genshin and its successors are massive AAA games of a scale that, for your Nintendos and Ubisofts, would necessitate selling a bajillion copies to be a success. And they’re free.Genshin is an action game, whose playstyle changes depending on what character you’re playing — characters you get from gacha pulls, of course. In Zenless Zone Zero, the characters you can pull have different combo patterns, do different kinds of damage, and just feel different to play. And whereas in an early mobile gacha game like Love Nikki Dress UP! Queen the world was rudimentary, its modern descendant Infinity Nikki is, like Genshin, Breath of the Wild-esque. It is a massive open world, with collectibles and physics puzzles, platforming challenges, and a surprisingly involved storyline. Genshin Impact was the subject of an interesting study where researchers asked young adults in Hong Kong to self-report on their gacha spending habits. They found that, like with gambling, players who are not feeling good tend to spend more. “Young adult gacha gamers experiencing greater stress and anxiety tend to spend more on gacha purchases, have more motives for gacha purchases, and participate in more gambling activities,” they wrote. “This group is at a particularly higher risk of becoming problem gamblers.”One thing that is important to note is that Genshin Impact came out in 2020. The study was self-reported, and it was done during the early stages of the COVID-19 pandemic. It was a time when people were experiencing a lot of stress, and also fewer options to relieve that stress. We were all stuck inside gaming.But the fact that stress can make people more likely to spend money on gacha shows that while the gacha model isn’t necessarily harmful to everyone, it is exploitative to everyone. Since I started writing this story, another self-reported study came out in Japan, where 18.8% of people in their 20s say they’ve spent money on gacha rather than on things like food or rent.Following Genshin Impact’s release, MiHoYo put out Honkai: Star Rail and Zenless Zone Zero. All are shiny, big-budget games that are free to play, but dangle the lure of making just one purchase in front of the player. Maybe you could drop five bucks on a handful of in-game currency to get one more pull. Or maybe just this month you’ll get the second tier of rewards on the game’s equivalent of a Battle Pass. The game is free, after all — but haven’t you enjoyed at least ten dollars’ worth of gameplay? Image: HoyoverseI spent most of my December throwing myself into Infinity Nikki. I had been so stressed, and the game was so soothing. I logged in daily to fulfill my daily wishes and earn my XP, diamonds, Threads of Purity, and bling. I accumulated massive amounts of resources. I haven’t spent money on the game. I’m trying not to, and so far, it’s been pretty easy. I’ve been super happy with how much stuff I can get for free, and how much I can do! I actually feel really good about that — which is what I said to my boyfriend, and he replied, “Yeah, that’s the point. That’s how they get you.”And he’s right. Currently, Infinity Nikki players are embroiled in a war with developer Infold, after Infold introduced yet another currency type with deep ties to Nikki’s gacha system. Every one of these gacha games has its own tangled system of overlapping currencies. Some can only be used on gacha pulls. Some can only be used to upgrade items. Many of them can be purchased with human money.Image: InFold Games/Papergames via PolygonAll of this adds up. According to Sensor Towers’ data, Genshin Impact earned over 36 million dollars on mobile alone in a single month of 2024. I don’t know what Dan DiIorio’s peak monthly revenue for Luck Be A Landlord was, but I’m pretty sure it wasn’t that.A lot of the spending guardrails we see in games like these are actually the result of regulations in other territories, especially China, where gacha has been a big deal for a lot longer. For example, gacha games have a daily limit on loot boxes, with the number clearly displayed, and a system collectively called “pity,” where getting the banner item is guaranteed after a certain number of pulls. Lastly, developers have to be clear about what the odds are. When I log in to spend the Revelation Crystals I’ve spent weeks hoarding in my F2P Infinity Nikki experience, I know that I have a 1.5% chance of pulling a 5-star piece, and that the odds can go up to 6.06%, and that I am guaranteed to get one within 20 pulls, because of the pity system.So, these odds are awful. But it is not as merciless as sitting down at a Vegas slot machine, an experience best described as “oh… that’s it?”There’s not a huge philosophical difference between buying a pack of loot boxes in Overwatch, a pull in Genshin Impact, or even a booster of Pokémon cards. You put in money, you get back randomized stuff that may or may not be what you want. In the dictionary definition, it’s a gamble. But unlike the slot machine, it’s not like you’re trying to win money by doing it, unless you’re selling those Pokémon cards, which is a topic for another time.But since even a game where you don’t get anything, like Balatro or Luck Be A Landlord, can come under fire for promoting gambling to kids, it would seem appropriate for app stores and ratings boards to take a similarly hardline stance with gacha.Instead, all these games are rated T for Teen by the ESRB, and PEGI 12 in the EU.The ESRB ratings for these games note that they contain in-game purchases, including random items. Honkai: Star Rail’s rating specifically calls out a slot machine mechanic, where players spend tokens to win a prize. But other than calling out Honkai’s slot machine, app stores are not slapping Genshin or Nikki with an 18+ rating. Meanwhile, Balatro had a PEGI rating of 18 until a successful appeal in February 2025, and Luck Be a Landlord is still 17+ on Apple’s App Store.Nobody knows what they’re doingWhen I started researching this piece, I felt very strongly that it was absurd that Luck Be A Landlord and Balatro had age ratings this high.I still believe that the way both devs have been treated by ratings boards is bad. Threatening an indie dev with a significant loss of income by pulling their game is bad, not giving them a way to defend themself or help them understand why it’s happening is even worse. It’s an extension of the general way that too-big-to-fail companies like Google treat all their customers.DiIorio told me that while it felt like a human being had at least looked at Luck Be A Landlord to make the determination that it contained gambling themes, the emails he was getting were automatic, and he doesn’t have a contact at Google to ask why this happened or how he can avoid it in the future — an experience that will be familiar to anyone who has ever needed Google support. But what’s changed for me is that I’m not actually sure anymore that games that don’t have gambling should be completely let off the hook for evoking gambling.Exposing teens to simulated gambling without financial stakes could spark an interest in the real thing later on, according to a study in the International Journal of Environmental Research and Public Health. It’s the same reason you can’t mosey down to the drug store to buy candy cigarettes. Multiple studies were done that showed kids who ate candy cigarettes were more likely to take up smokingSo while I still think rating something like Balatro 18+ is nuts, I also think that describing it appropriately might be reasonable. As a game, it’s completely divorced from literally any kind of play you would find in a casino — but I can see the concern that the thrill of flashy numbers and the shiny cards might encourage young players to try their hand at poker in a real casino, where a real house can take their money.Maybe what’s more important than doling out high age ratings is helping people think about how media can affect us. In the same way that, when I was 12 and obsessed with The Matrix, my parents gently made sure that I knew that none of the violence was real and you can’t actually cartwheel through a hail of bullets in real life. Thanks, mom and dad!But that’s an answer that’s a lot more abstract and difficult to implement than a big red 18+ banner. When it comes to gacha, I think we’re even less equipped to talk about these game mechanics, and I’m certain they’re not being age-rated appropriately. On the one hand, like I said earlier, gacha exploits the player’s desire for stuff that they are heavily manipulated to buy with real money. On the other hand, I think it’s worth acknowledging that there is a difference between gacha and casino gambling.Problem gamblers aren’t satisfied by winning — the thing they’re addicted to is playing, and the risk that comes with it. In gacha games, players do report satisfaction when they achieve the prize they set out to get. And yes, in the game’s next season, the developer will be dangling a shiny new prize in front of them with the goal of starting the cycle over. But I think it’s fair to make the distinction, while still being highly critical of the model.And right now, there is close to no incentive for app stores to crack down on gacha in any way. They get a cut of in-app purchases. Back in 2023, miHoYo tried a couple of times to set up payment systems that circumvented Apple’s 30% cut of in-app spending. Both times, it was thwarted by Apple, whose App Store generated trillion in developer billings and sales in 2022.According to Apple itself, 90% of that money did not include any commission to Apple. Fortunately for Apple, ten percent of a trillion dollars is still one hundred billion dollars, which I would also like to have in my bank account. Apple has zero reason to curb spending on games that have been earning millions of dollars every month for years.And despite the popularity of Luck Be A Landlord and Balatro’s massive App Store success, these games will never be as lucrative. They’re one-time purchases, and they don’t have microtransactions. To add insult to injury, like most popular games, Luck Be A Landlord has a lot of clones. And from what I can tell, it doesn’t look like any of them have been made to indicate that their games contain the dreaded “gambling themes” that Google was so worried about in Landlord.In particular, a game called SpinCraft: Roguelike from Sneaky Panda Games raised million in seed funding for “inventing the Luck-Puzzler genre,” which it introduced in 2022, while Luck Be A Landlord went into early access in 2021.It’s free-to-play, has ads and in-app purchases, looks like Fisher Price made a slot machine, and it’s rated E for everyone, with no mention of gambling imagery in its rating. I reached out to the developers to ask if they had also been contacted by the Play Store to disclose that their game has gambling themes, but I haven’t heard back.Borrowing mechanics in games is as old as time, and it’s something I in no way want to imply shouldn’t happen because copyright is the killer of invention — but I think we can all agree that the system is broken.There is no consistency in how games with random chance are treated. We still do not know how to talk about gambling, or gambling themes, and at the end of the day, the results of this are the same: the house always wins.See More: #nobody #understands #gambling #especially #video
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    Nobody understands gambling, especially in video games
    In 2025, it’s very difficult not to see gambling advertised everywhere. It’s on billboards and sports broadcasts. It’s on podcasts and printed on the turnbuckle of AEW’s pay-per-view shows. And it’s on app stores, where you can find the FanDuel and DraftKings sportsbooks, alongside glitzy digital slot machines. These apps all have the highest age ratings possible on Apple’s App Store and Google Play. But earlier this year, a different kind of app nearly disappeared from the Play Store entirely.Luck Be A Landlord is a roguelite deckbuilder from solo developer Dan DiIorio. DiIorio got word from Google in January 2025 that Luck Be A Landlord was about to be pulled, globally, because DiIorio had not disclosed the game’s “gambling themes” in its rating.In Luck Be a Landlord, the player takes spins on a pixel art slot machine to earn coins to pay their ever-increasing rent — a nightmare gamification of our day-to-day grind to remain housed. On app stores, it’s a one-time purchase of $4.99, and it’s $9.99 on Steam. On the Play Store page, developer Dan DiIorio notes, “This game does not contain any real-world currency gambling or microtransactions.”And it doesn’t. But for Google, that didn’t matter. First, the game was removed from the storefront in a slew of countries that have strict gambling laws. Then, at the beginning of 2025, Google told Dilorio that Luck Be A Landlord would be pulled globally because of its rating discrepancy, as it “does not take into account references to gambling (including real or simulated gambling)”.DiIorio had gone through this song and dance before — previously, when the game was blocked, he would send back a message saying “hey, the game doesn’t have gambling,” and then Google would send back a screenshot of the game and assert that, in fact, it had.DiIorio didn’t agree, but this time they decided that the risk of Landlord getting taken down permanently was too great. They’re a solo developer, and Luck Be a Landlord had just had its highest 30-day revenue since release. So, they filled out the form confirming that Luck Be A Landlord has “gambling themes,” and are currently hoping that this will be the end of it.This is a situation that sucks for an indie dev to be in, and over email DiIorio told Polygon it was “very frustrating.”“I think it can negatively affect indie developers if they fall outside the norm, which indies often do,” they wrote. “It also makes me afraid to explore mechanics like this further. It stifles creativity, and that’s really upsetting.”In late 2024, the hit game Balatro was in a similar position. It had won numerous awards, and made $1,000,000 in its first week on mobile platforms. And then overnight, the PEGI ratings board declared that the game deserved an adult rating.The ESRB had already rated it E10+ in the US, noting it has gambling themes. And the game was already out in Europe, making its overnight ratings change a surprise. Publisher PlayStack said the rating was given because Balatro has “prominent gambling imagery and material that instructs about gambling.”Balatro is basically Luck Be A Landlord’s little cousin. Developer LocalThunk was inspired by watching streams of Luck Be A Landlord, and seeing the way DiIorio had implemented deck-building into his slot machine. And like Luck Be A Landlord, Balatro is a one-time purchase, with no microtransactions.But the PEGI board noted that because the game uses poker hands, the skills the player learns in Balatro could translate to real-world poker.In its write-up, GameSpot noted that the same thing happened to a game called Sunshine Shuffle. It was temporarily banned from the Nintendo eShop, and also from the entire country of South Korea. Unlike Balatro, Sunshine Shuffle actually is a poker game, except you’re playing Texas Hold ‘Em — again for no real money — with cute animals (who are bank robbers).It’s common sense that children shouldn’t be able to access apps that allow them to gamble. But none of these games contain actual gambling — or do they?Where do we draw the line? Is it gambling to play any game that is also played in casinos, like poker or blackjack? Is it gambling to play a game that evokes the aesthetics of a casino, like cards, chips, dice, or slot machines? Is it gambling to wager or earn fictional money?Gaming has always been a lightning rod for controversy. Sex, violence, misogyny, addiction — you name it, video games have been accused of perpetrating or encouraging it. But gambling is gaming’s original sin. And it’s the one we still can’t get a grip on.The original link between gambling and gamingGetty ImagesThe association between video games and gambling all goes back to pinball. Back in the ’30s and ’40s, politicians targeted pinball machines for promoting gambling. Early pinball machines were less skill-based (they didn’t have flippers), and some gave cash payouts, so the comparison wasn’t unfair. Famously, mob-hating New York City mayor Fiorello LaGuardia banned pinball in the city, and appeared in a newsreel dumping pinball and slot machines into the Long Island Sound. Pinball machines spent some time relegated to the back rooms of sex shops and dive bars. But after some lobbying, the laws relaxed.By the 1970s, pinball manufacturers were also making video games, and the machines were side-by-side in arcades. Arcade machines, like pinball, took small coin payments, repeatedly, for short rounds of play. The disreputable funk of pinball basically rubbed off onto video games.Ever since video games rocked onto the scene, concerned and sometimes uneducated parties have been asking if they’re dangerous. And in general, studies have shown that they’re not. The same can’t be said about gambling — the practice of putting real money down to bet on an outcome.It’s a golden age for gambling2025 in the USA is a great time for gambling, which has been really profitable for gambling companies — to the tune of $66.5 billion dollars of revenue in 2023.To put this number in perspective, the American Gaming Association, which is the casino industry’s trade group and has nothing to do with video games, reports that 2022’s gambling revenue was $60.5 billion. It went up $6 billion in a year.And this increase isn’t just because of sportsbooks, although sports betting is a huge part of it. Online casinos and brick-and-mortar casinos are both earning more, and as a lot of people have pointed out, gambling is being normalized to a pretty disturbing degree.Much like with alcohol, for a small percentage of people, gambling can tip from occasional leisure activity into addiction. The people who are most at risk are, by and large, already vulnerable: researchers at the Yale School of Medicine found that 96% of problem gamblers are also wrestling with other disorders, such as “substance use, impulse-control disorders, mood disorders, and anxiety disorders.”Even if you’re not in that group, there are still good reasons to be wary of gambling. People tend to underestimate their own vulnerability to things they know are dangerous for others. Someone else might bet beyond their means. But I would simply know when to stop.Maybe you do! But being blithely confident about it can make it hard to notice if you do develop a problem. Or if you already have one.Addiction changes the way your brain works. When you’re addicted to something, your participation in it becomes compulsive, at the expense of other interests and responsibilities. Someone might turn to their addiction to self-soothe when depressed or anxious. And speaking of those feelings, people who are depressed and anxious are already more vulnerable to addiction. Given the entire state of the world right now, this predisposition shines an ugly light on the numbers touted by the AGA. Is it good that the industry is reporting $6 billion in additional earnings, when the economy feels so frail, when the stock market is ping ponging through highs and lows daily, when daily expenses are rising? It doesn’t feel good. In 2024, the YouTuber Drew Gooden turned his critical eye to online gambling. One of the main points he makes in his excellent video is that gambling is more accessible than ever. It’s on all our phones, and betting companies are using decades of well-honed app design and behavioral studies to manipulate users to spend and spend.Meanwhile, advertising on podcasts, billboards, TV, radio, and websites – it’s literally everywhere — tells you that this is fun, and you don’t even need to know what you’re doing, and you’re probably one bet away from winning back those losses.Where does Luck Be a Landlord come into this?So, are there gambling themes in Luck Be A Landlord? The game’s slot machine is represented in simple pixel art. You pay one coin to use it, and among the more traditional slot machine symbols are silly ones like a snail that only pays out after 4 spins.When I started playing it, my primary emotion wasn’t necessarily elation at winning coins — it was stress and disbelief when, in the third round of the game, the landlord increased my rent by 100%. What the hell.I don’t doubt that getting better at it would produce dopamine thrills akin to gambling — or playing any video game. But it’s supposed to be difficult, because that’s the joke. If you beat the game you unlock more difficulty modes where, as you keep paying rent, your landlord gets furious, and starts throwing made-up rules at you: previously rare symbols will give you less of a payout, and the very mechanics of the slot machine change.It’s a manifestation of the golden rule of casinos, and all of capitalism writ large: the odds are stacked against you. The house always wins. There is luck involved, to be sure, but because Luck Be A Landlord is a deck-builder, knowing the different ways you can design your slot machine to maximize payouts is a skill! You have some influence over it, unlike a real slot machine. The synergies that I’ve seen high-level players create are completely nuts, and obviously based on a deep understanding of the strategies the game allows.IMAGE: TrampolineTales via PolygonBalatro and Luck Be a Landlord both distance themselves from casino gambling again in the way they treat money. In Landlord, the money you earn is gold coins, not any currency we recognize. And the payouts aren’t actually that big. By the end of the core game, the rent money you’re struggling and scraping to earn… is 777 coins. In the post-game endless mode, payouts can get massive. But the thing is, to get this far, you can’t rely on chance. You have to be very good at Luck Be a Landlord.And in Balatro, the numbers that get big are your points. The actual dollar payments in a round of Balatro are small. These aren’t games about earning wads and wads of cash. So, do these count as “gambling themes”?We’ll come back to that question later. First, I want to talk about a closer analog to what we colloquially consider gambling: loot boxes and gacha games.Random rewards: from Overwatch to the rise of gachaRecently, I did something that I haven’t done in a really long time: I thought about Overwatch. I used to play Overwatch with my friends, and I absolutely made a habit of dropping 20 bucks here or there for a bunch of seasonal loot boxes. This was never a problem behavior for me, but in hindsight, it does sting that over a couple of years, I dropped maybe $150 on cosmetics for a game that now I primarily associate with squandered potential.Loot boxes grew out of free-to-play mobile games, where they’re the primary method of monetization. In something like Overwatch, they functioned as a way to earn additional revenue in an ongoing game, once the player had already dropped 40 bucks to buy it.More often than not, loot boxes are a random selection of skins and other cosmetics, but games like Star Wars: Battlefront 2 were famously criticized for launching with loot crates that essentially made it pay-to-win – if you bought enough of them and got lucky.It’s not unprecedented to associate loot boxes with gambling. A 2021 study published in Addictive Behaviors showed that players who self-reported as problem gamblers also tended to spend more on loot boxes, and another study done in the UK found a similar correlation with young adults.While Overwatch certainly wasn’t the first game to feature cosmetic loot boxes or microtransactions, it’s a reference point for me, and it also got attention worldwide. In 2018, Overwatch was investigated by the Belgian Gaming Commission, which found it “in violation of gambling legislation” alongside FIFA 18 and Counter-Strike: Global Offensive. Belgium’s response was to ban the sale of loot boxes without a gambling license. Having a paid random rewards mechanic in a game is a criminal offense there. But not really. A 2023 study showed that 82% of iPhone games sold on the App Store in Belgium still use random paid monetization, as do around 80% of games that are rated 12+. The ban wasn’t effectively enforced, if at all, and the study recommends that a blanket ban wouldn’t actually be a practical solution anyway.Overwatch was rated T for Teen by the ESRB, and 12 by PEGI. When it first came out, its loot boxes were divisive. Since the mechanic came from F2P mobile games, which are often seen as predatory, people balked at seeing it in a big action game from a multi-million dollar publisher.At the time, the rebuttal was, “Well, at least it’s just cosmetics.” Nobody needs to buy loot boxes to be good at Overwatch.A lot has changed since 2016. Now we have a deeper understanding of how these mechanics are designed to manipulate players, even if they don’t affect gameplay. But also, they’ve been normalized. While there will always be people expressing disappointment when a AAA game has a paid random loot mechanic, it is no longer shocking.And if anything, these mechanics have only become more prevalent, thanks to the growth of gacha games. Gacha is short for “gachapon,” the Japanese capsule machines where you pay to receive one of a selection of random toys. Getty ImagesIn gacha games, players pay — not necessarily real money, but we’ll get to that — for a chance to get something. Maybe it’s a character, or a special weapon, or some gear — it depends on the game. Whatever it is, within that context, it’s desirable — and unlike the cosmetics of Overwatch, gacha pulls often do impact the gameplay.For example, in Infinity Nikki, you can pull for clothing items in these limited-time events. You have a chance to get pieces of a five-star outfit. But you also might pull one of a set of four-star items, or a permanent three-star piece. Of course, if you want all ten pieces of the five-star outfit, you have to do multiple pulls, each costing a handful of limited resources that you can earn in-game or purchase with money.Gacha was a fixture of mobile gaming for a long time, but in recent years, we’ve seen it go AAA, and global. MiHoYo’s Genshin Impact did a lot of that work when it came out worldwide on consoles and PC alongside its mobile release. Genshin and its successors are massive AAA games of a scale that, for your Nintendos and Ubisofts, would necessitate selling a bajillion copies to be a success. And they’re free.Genshin is an action game, whose playstyle changes depending on what character you’re playing — characters you get from gacha pulls, of course. In Zenless Zone Zero, the characters you can pull have different combo patterns, do different kinds of damage, and just feel different to play. And whereas in an early mobile gacha game like Love Nikki Dress UP! Queen the world was rudimentary, its modern descendant Infinity Nikki is, like Genshin, Breath of the Wild-esque. It is a massive open world, with collectibles and physics puzzles, platforming challenges, and a surprisingly involved storyline. Genshin Impact was the subject of an interesting study where researchers asked young adults in Hong Kong to self-report on their gacha spending habits. They found that, like with gambling, players who are not feeling good tend to spend more. “Young adult gacha gamers experiencing greater stress and anxiety tend to spend more on gacha purchases, have more motives for gacha purchases, and participate in more gambling activities,” they wrote. “This group is at a particularly higher risk of becoming problem gamblers.”One thing that is important to note is that Genshin Impact came out in 2020. The study was self-reported, and it was done during the early stages of the COVID-19 pandemic. It was a time when people were experiencing a lot of stress, and also fewer options to relieve that stress. We were all stuck inside gaming.But the fact that stress can make people more likely to spend money on gacha shows that while the gacha model isn’t necessarily harmful to everyone, it is exploitative to everyone. Since I started writing this story, another self-reported study came out in Japan, where 18.8% of people in their 20s say they’ve spent money on gacha rather than on things like food or rent.Following Genshin Impact’s release, MiHoYo put out Honkai: Star Rail and Zenless Zone Zero. All are shiny, big-budget games that are free to play, but dangle the lure of making just one purchase in front of the player. Maybe you could drop five bucks on a handful of in-game currency to get one more pull. Or maybe just this month you’ll get the second tier of rewards on the game’s equivalent of a Battle Pass. The game is free, after all — but haven’t you enjoyed at least ten dollars’ worth of gameplay? Image: HoyoverseI spent most of my December throwing myself into Infinity Nikki. I had been so stressed, and the game was so soothing. I logged in daily to fulfill my daily wishes and earn my XP, diamonds, Threads of Purity, and bling. I accumulated massive amounts of resources. I haven’t spent money on the game. I’m trying not to, and so far, it’s been pretty easy. I’ve been super happy with how much stuff I can get for free, and how much I can do! I actually feel really good about that — which is what I said to my boyfriend, and he replied, “Yeah, that’s the point. That’s how they get you.”And he’s right. Currently, Infinity Nikki players are embroiled in a war with developer Infold, after Infold introduced yet another currency type with deep ties to Nikki’s gacha system. Every one of these gacha games has its own tangled system of overlapping currencies. Some can only be used on gacha pulls. Some can only be used to upgrade items. Many of them can be purchased with human money.Image: InFold Games/Papergames via PolygonAll of this adds up. According to Sensor Towers’ data, Genshin Impact earned over 36 million dollars on mobile alone in a single month of 2024. I don’t know what Dan DiIorio’s peak monthly revenue for Luck Be A Landlord was, but I’m pretty sure it wasn’t that.A lot of the spending guardrails we see in games like these are actually the result of regulations in other territories, especially China, where gacha has been a big deal for a lot longer. For example, gacha games have a daily limit on loot boxes, with the number clearly displayed, and a system collectively called “pity,” where getting the banner item is guaranteed after a certain number of pulls. Lastly, developers have to be clear about what the odds are. When I log in to spend the Revelation Crystals I’ve spent weeks hoarding in my F2P Infinity Nikki experience, I know that I have a 1.5% chance of pulling a 5-star piece, and that the odds can go up to 6.06%, and that I am guaranteed to get one within 20 pulls, because of the pity system.So, these odds are awful. But it is not as merciless as sitting down at a Vegas slot machine, an experience best described as “oh… that’s it?”There’s not a huge philosophical difference between buying a pack of loot boxes in Overwatch, a pull in Genshin Impact, or even a booster of Pokémon cards. You put in money, you get back randomized stuff that may or may not be what you want. In the dictionary definition, it’s a gamble. But unlike the slot machine, it’s not like you’re trying to win money by doing it, unless you’re selling those Pokémon cards, which is a topic for another time.But since even a game where you don’t get anything, like Balatro or Luck Be A Landlord, can come under fire for promoting gambling to kids, it would seem appropriate for app stores and ratings boards to take a similarly hardline stance with gacha.Instead, all these games are rated T for Teen by the ESRB, and PEGI 12 in the EU.The ESRB ratings for these games note that they contain in-game purchases, including random items. Honkai: Star Rail’s rating specifically calls out a slot machine mechanic, where players spend tokens to win a prize. But other than calling out Honkai’s slot machine, app stores are not slapping Genshin or Nikki with an 18+ rating. Meanwhile, Balatro had a PEGI rating of 18 until a successful appeal in February 2025, and Luck Be a Landlord is still 17+ on Apple’s App Store.Nobody knows what they’re doingWhen I started researching this piece, I felt very strongly that it was absurd that Luck Be A Landlord and Balatro had age ratings this high.I still believe that the way both devs have been treated by ratings boards is bad. Threatening an indie dev with a significant loss of income by pulling their game is bad, not giving them a way to defend themself or help them understand why it’s happening is even worse. It’s an extension of the general way that too-big-to-fail companies like Google treat all their customers.DiIorio told me that while it felt like a human being had at least looked at Luck Be A Landlord to make the determination that it contained gambling themes, the emails he was getting were automatic, and he doesn’t have a contact at Google to ask why this happened or how he can avoid it in the future — an experience that will be familiar to anyone who has ever needed Google support. But what’s changed for me is that I’m not actually sure anymore that games that don’t have gambling should be completely let off the hook for evoking gambling.Exposing teens to simulated gambling without financial stakes could spark an interest in the real thing later on, according to a study in the International Journal of Environmental Research and Public Health. It’s the same reason you can’t mosey down to the drug store to buy candy cigarettes. Multiple studies were done that showed kids who ate candy cigarettes were more likely to take up smoking (of course, the candy is still available — just without the “cigarette” branding.)So while I still think rating something like Balatro 18+ is nuts, I also think that describing it appropriately might be reasonable. As a game, it’s completely divorced from literally any kind of play you would find in a casino — but I can see the concern that the thrill of flashy numbers and the shiny cards might encourage young players to try their hand at poker in a real casino, where a real house can take their money.Maybe what’s more important than doling out high age ratings is helping people think about how media can affect us. In the same way that, when I was 12 and obsessed with The Matrix, my parents gently made sure that I knew that none of the violence was real and you can’t actually cartwheel through a hail of bullets in real life. Thanks, mom and dad!But that’s an answer that’s a lot more abstract and difficult to implement than a big red 18+ banner. When it comes to gacha, I think we’re even less equipped to talk about these game mechanics, and I’m certain they’re not being age-rated appropriately. On the one hand, like I said earlier, gacha exploits the player’s desire for stuff that they are heavily manipulated to buy with real money. On the other hand, I think it’s worth acknowledging that there is a difference between gacha and casino gambling.Problem gamblers aren’t satisfied by winning — the thing they’re addicted to is playing, and the risk that comes with it. In gacha games, players do report satisfaction when they achieve the prize they set out to get. And yes, in the game’s next season, the developer will be dangling a shiny new prize in front of them with the goal of starting the cycle over. But I think it’s fair to make the distinction, while still being highly critical of the model.And right now, there is close to no incentive for app stores to crack down on gacha in any way. They get a cut of in-app purchases. Back in 2023, miHoYo tried a couple of times to set up payment systems that circumvented Apple’s 30% cut of in-app spending. Both times, it was thwarted by Apple, whose App Store generated $1.1 trillion in developer billings and sales in 2022.According to Apple itself, 90% of that money did not include any commission to Apple. Fortunately for Apple, ten percent of a trillion dollars is still one hundred billion dollars, which I would also like to have in my bank account. Apple has zero reason to curb spending on games that have been earning millions of dollars every month for years.And despite the popularity of Luck Be A Landlord and Balatro’s massive App Store success, these games will never be as lucrative. They’re one-time purchases, and they don’t have microtransactions. To add insult to injury, like most popular games, Luck Be A Landlord has a lot of clones. And from what I can tell, it doesn’t look like any of them have been made to indicate that their games contain the dreaded “gambling themes” that Google was so worried about in Landlord.In particular, a game called SpinCraft: Roguelike from Sneaky Panda Games raised $6 million in seed funding for “inventing the Luck-Puzzler genre,” which it introduced in 2022, while Luck Be A Landlord went into early access in 2021.It’s free-to-play, has ads and in-app purchases, looks like Fisher Price made a slot machine, and it’s rated E for everyone, with no mention of gambling imagery in its rating. I reached out to the developers to ask if they had also been contacted by the Play Store to disclose that their game has gambling themes, but I haven’t heard back.Borrowing mechanics in games is as old as time, and it’s something I in no way want to imply shouldn’t happen because copyright is the killer of invention — but I think we can all agree that the system is broken.There is no consistency in how games with random chance are treated. We still do not know how to talk about gambling, or gambling themes, and at the end of the day, the results of this are the same: the house always wins.See More:
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  • Wayfarers Chapel, designed by Frank Lloyd Wright’s son, proposes new site for reassembled church

    In Rancho Palos Verde, California, the disassembled Wayfarers Chapel designed by Lloyd Wright, the son of Frank Lloyd Wright, has been stored away since last July, following damage from landslides. A potential site for the ecclesiastical structure has been found. The proposed site would expand the footprint of the serene property and protect its structures from further damage caused by land movement. 

    In the 1970s, a landslide at the site destroyed the chapel’s visitor center, and the geologic movement was inactive for a while. However, in the past few years activity began accelerating at an unprecedented rate. In February 2024, the Wayfarers Chapel announced that it would close its doors due to land movement in the area. The shuttering left a displaced congregation and devastated brides in its wake, but there was still hope of a return. Then, in May 2024, it was announced that the only way to maintain the structure was to disassemble it.
    Land movement had caused glass panels to shatter, the metal framing to warp, and cracks to form in the concrete. Though leadership initially wanted to rebuild on site, the worsening conditions proved this was no longer a viable option. In July 2024, with the help of Architectural Resources Group, the church was meticulously disassembled with each part numbered and labeled. Many of the irreplaceable materials used to construct the original chapel were salvaged. The pieces have since been kept in storage, waiting to be rebuilt. 
    The chapel was disassembled and stored for preservation.The chapel’s new site must carry similar characteristics to the old one to uphold its National Historic Landmark designation. The prospective site, Battery Barnes, shares the original site’s coastal views of the Pacific, while situating the reassembled chapel outside the Portuguese Bend. Built in 1943 as part of the U.S. Army’s coastal fortification plan, the Battery Barnes’s connection to World War II could also be highlighted throughout the use of the land. 
    The glass chapel will be reconstructed using the salvaged original materials.Wayfarers Chapel also plans to take advantage of the expanded footprint of the proposed site. During an episode of “RPV City Talk,” the chapel’s communications director Stephanie Cartozian shared that the organization hopes to rebuild the chapel along with the lost visitor center, as well as constructing a museum, archival center, and restaurant. The campus would also see the addition of public restrooms for hikers, expanding on its community accessibility.  
    Currently, Wayfarers Chapel is fundraising to cover the rebuild, with part of the funds going toward securing the site. Unlike wildfires, earthquakes, or flooding, landslides are not considered disasters in the State of California. Thus, along with fundraising efforts, local lobbying efforts are being made to add landslides to the list of covered emergencies, which could create a path to governmental assistance.
    #wayfarers #chapel #designed #frank #lloyd
    Wayfarers Chapel, designed by Frank Lloyd Wright’s son, proposes new site for reassembled church
    In Rancho Palos Verde, California, the disassembled Wayfarers Chapel designed by Lloyd Wright, the son of Frank Lloyd Wright, has been stored away since last July, following damage from landslides. A potential site for the ecclesiastical structure has been found. The proposed site would expand the footprint of the serene property and protect its structures from further damage caused by land movement.  In the 1970s, a landslide at the site destroyed the chapel’s visitor center, and the geologic movement was inactive for a while. However, in the past few years activity began accelerating at an unprecedented rate. In February 2024, the Wayfarers Chapel announced that it would close its doors due to land movement in the area. The shuttering left a displaced congregation and devastated brides in its wake, but there was still hope of a return. Then, in May 2024, it was announced that the only way to maintain the structure was to disassemble it. Land movement had caused glass panels to shatter, the metal framing to warp, and cracks to form in the concrete. Though leadership initially wanted to rebuild on site, the worsening conditions proved this was no longer a viable option. In July 2024, with the help of Architectural Resources Group, the church was meticulously disassembled with each part numbered and labeled. Many of the irreplaceable materials used to construct the original chapel were salvaged. The pieces have since been kept in storage, waiting to be rebuilt.  The chapel was disassembled and stored for preservation.The chapel’s new site must carry similar characteristics to the old one to uphold its National Historic Landmark designation. The prospective site, Battery Barnes, shares the original site’s coastal views of the Pacific, while situating the reassembled chapel outside the Portuguese Bend. Built in 1943 as part of the U.S. Army’s coastal fortification plan, the Battery Barnes’s connection to World War II could also be highlighted throughout the use of the land.  The glass chapel will be reconstructed using the salvaged original materials.Wayfarers Chapel also plans to take advantage of the expanded footprint of the proposed site. During an episode of “RPV City Talk,” the chapel’s communications director Stephanie Cartozian shared that the organization hopes to rebuild the chapel along with the lost visitor center, as well as constructing a museum, archival center, and restaurant. The campus would also see the addition of public restrooms for hikers, expanding on its community accessibility.   Currently, Wayfarers Chapel is fundraising to cover the rebuild, with part of the funds going toward securing the site. Unlike wildfires, earthquakes, or flooding, landslides are not considered disasters in the State of California. Thus, along with fundraising efforts, local lobbying efforts are being made to add landslides to the list of covered emergencies, which could create a path to governmental assistance. #wayfarers #chapel #designed #frank #lloyd
    WWW.ARCHPAPER.COM
    Wayfarers Chapel, designed by Frank Lloyd Wright’s son, proposes new site for reassembled church
    In Rancho Palos Verde, California, the disassembled Wayfarers Chapel designed by Lloyd Wright, the son of Frank Lloyd Wright, has been stored away since last July, following damage from landslides. A potential site for the ecclesiastical structure has been found. The proposed site would expand the footprint of the serene property and protect its structures from further damage caused by land movement.  In the 1970s, a landslide at the site destroyed the chapel’s visitor center, and the geologic movement was inactive for a while. However, in the past few years activity began accelerating at an unprecedented rate. In February 2024, the Wayfarers Chapel announced that it would close its doors due to land movement in the area. The shuttering left a displaced congregation and devastated brides in its wake, but there was still hope of a return. Then, in May 2024, it was announced that the only way to maintain the structure was to disassemble it. Land movement had caused glass panels to shatter, the metal framing to warp, and cracks to form in the concrete. Though leadership initially wanted to rebuild on site, the worsening conditions proved this was no longer a viable option. In July 2024, with the help of Architectural Resources Group, the church was meticulously disassembled with each part numbered and labeled. Many of the irreplaceable materials used to construct the original chapel were salvaged. The pieces have since been kept in storage, waiting to be rebuilt.  The chapel was disassembled and stored for preservation. (Architectural Resources Group) The chapel’s new site must carry similar characteristics to the old one to uphold its National Historic Landmark designation. The prospective site, Battery Barnes, shares the original site’s coastal views of the Pacific, while situating the reassembled chapel outside the Portuguese Bend. Built in 1943 as part of the U.S. Army’s coastal fortification plan, the Battery Barnes’s connection to World War II could also be highlighted throughout the use of the land.  The glass chapel will be reconstructed using the salvaged original materials. (Architectural Resources Group/Courtesy Wayfarers Chapel) Wayfarers Chapel also plans to take advantage of the expanded footprint of the proposed site. During an episode of “RPV City Talk,” the chapel’s communications director Stephanie Cartozian shared that the organization hopes to rebuild the chapel along with the lost visitor center, as well as constructing a museum, archival center, and restaurant. The campus would also see the addition of public restrooms for hikers, expanding on its community accessibility.   Currently, Wayfarers Chapel is fundraising to cover the rebuild, with part of the funds going toward securing the site. Unlike wildfires, earthquakes, or flooding, landslides are not considered disasters in the State of California. Thus, along with fundraising efforts, local lobbying efforts are being made to add landslides to the list of covered emergencies, which could create a path to governmental assistance.
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  • Europe threatens Apple with additional fines

    The European Commission has published its full Digital Markets Actdecision against Apple, and it’s far, far worse than anybody expected. The Commission, the executive arm of the European Union, has accepted absolutely none of Apple’s arguments against being fined, and the decision threatens yet more existential damage to the company.

    Apple isn’t winning the argument, and, right or wrong, the decision has fangs.

    Huge fines, big threats

    Europe announced in April that it would fine Apple an eye-popping €500 million for noncompliance with the DMA, giving Apple 60 days to comply with its decision. One month later, the Commission published the full ruling against Apple, which details that changes the company made to its App Store rules did not go far enough to bring it into compliance.

    The decision warns that Apple is subject to additional periodic fines in the future if it fails to comply with the Commission’s strict interpretation of the DMA, no matter how inherently punitive some of its demands may be. We’ll know soon enough if there are to be wider consequences to Europe’s demands. Apple now has 30 days to fully comply with the DMAor face additional fines.

    The act itself came into force in November 2022 and began to be implemented against companies defined as ‘gatekeepers’ in 2023. The intention is to stop Apple and others from using their market position to impose anticompetitive limitations on developers. 

    Who is steering?

    The big bugbear relates to Apple’s anti-steering restrictions, which prevent developers from telling customers they can purchase services outside the App Store. The DMA demands that Apple let developers offer this option, which Apple does, but Europe argues that the limitations the company makes on doing so are not in compliance with the law.

    Europe also says Apple’s existing restrictions, fees, and technical limitations undermine the effectiveness of the DMA. That seems to mean Apple cannot charge a commission and cannot warn users of the consequences they face when shopping outside the App Store. 

    The Commission even plays dumb to the potential significance of permitting developers to link out to any website from within their apps, rather than being constrained to approvedsites. It says Apple has provided insufficient justification for this restriction and also wants Apple to remove messages warning users when they are about to make a transaction outside the App Store. 

    That’s going to be particularly pleasing to fraudsters, who may now attempt to create fake payment portals that look like reputable ones. Apple prevented billion in fraud last year, the company has confirmed. Perhaps once the first big frauds take place, the EU may catch up to the online risks we all know exist.

    While I understand the original aim of Europe’s Digital Markets Act, the demands the Commission is making of Apple appear to go far beyond the original objective, which was to open up Apple’s platforms to competition. 

    The decisions now open Apple’s platform up to competitors. 

    There is a difference between the two, and, as described, it means Apple must now create and manage its platforms while permitting competitors to profit from those platforms at little or no cost.

    Apple rejects Europe

    Apple will fight in Europe. 

    “There is nothing in the 70-page decision released today that justifies the European Commission’s targeted actions against Apple, which threaten the privacy and security of our users in Europe and force us to give away our technology for free,” the company said. “Their decision and unprecedented fine came after the Commission continuously moved the goalposts on compliance, and repeatedly blocked Apple’s months-long efforts to implement a new solution. The decision is bad for innovation, bad for competition, bad for our products, and bad for users. While we appeal, we’ll continue engaging with the Commission to advocate on behalf of our European customers.”

    When the fine was initially revealed, the company also said: 

    “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free. We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way.”

    My take? 

    Far from saving Europe’s tech industry, the manner in which the DMA is being applied will make the region even less relevant. Lacking a significant platform of its own, Europe’s approach will reduce choice and increase insecurity.

    As the clear first target of the DMA, Apple will inevitably be forced to increase prices, charge developers more for access to its developer tools, and will I think simply stop selling some products and services in Europe, rather than threaten customer security. We know it can do this because it has done so before.

    Fundamentally, of course, the big question remains unaddressed: How much profit it is legitimate to make on any product or service? I imagine the European Commission doesn’t want to go near a question as fundamental to capitalist wealth extraction as that. Can you imagine the collapse in executive bonuses that would follow a decision to define what the maximum profit made in any business transaction should be?

    Lobbyists across the political spectrum would be appalled — that extra profit pays for their meals. Looking to the extent to which the current application of the DMA seems to favor Apple’s biggest competitors, I can’t help but imagine it’s been paying for a few European meals already. Nice work, if you can get it. 

    You can follow me on social media! Join me on BlueSky,  LinkedIn, Mastodon, and MeWe.
    #europe #threatens #apple #with #additional
    Europe threatens Apple with additional fines
    The European Commission has published its full Digital Markets Actdecision against Apple, and it’s far, far worse than anybody expected. The Commission, the executive arm of the European Union, has accepted absolutely none of Apple’s arguments against being fined, and the decision threatens yet more existential damage to the company. Apple isn’t winning the argument, and, right or wrong, the decision has fangs. Huge fines, big threats Europe announced in April that it would fine Apple an eye-popping €500 million for noncompliance with the DMA, giving Apple 60 days to comply with its decision. One month later, the Commission published the full ruling against Apple, which details that changes the company made to its App Store rules did not go far enough to bring it into compliance. The decision warns that Apple is subject to additional periodic fines in the future if it fails to comply with the Commission’s strict interpretation of the DMA, no matter how inherently punitive some of its demands may be. We’ll know soon enough if there are to be wider consequences to Europe’s demands. Apple now has 30 days to fully comply with the DMAor face additional fines. The act itself came into force in November 2022 and began to be implemented against companies defined as ‘gatekeepers’ in 2023. The intention is to stop Apple and others from using their market position to impose anticompetitive limitations on developers.  Who is steering? The big bugbear relates to Apple’s anti-steering restrictions, which prevent developers from telling customers they can purchase services outside the App Store. The DMA demands that Apple let developers offer this option, which Apple does, but Europe argues that the limitations the company makes on doing so are not in compliance with the law. Europe also says Apple’s existing restrictions, fees, and technical limitations undermine the effectiveness of the DMA. That seems to mean Apple cannot charge a commission and cannot warn users of the consequences they face when shopping outside the App Store.  The Commission even plays dumb to the potential significance of permitting developers to link out to any website from within their apps, rather than being constrained to approvedsites. It says Apple has provided insufficient justification for this restriction and also wants Apple to remove messages warning users when they are about to make a transaction outside the App Store.  That’s going to be particularly pleasing to fraudsters, who may now attempt to create fake payment portals that look like reputable ones. Apple prevented billion in fraud last year, the company has confirmed. Perhaps once the first big frauds take place, the EU may catch up to the online risks we all know exist. While I understand the original aim of Europe’s Digital Markets Act, the demands the Commission is making of Apple appear to go far beyond the original objective, which was to open up Apple’s platforms to competition.  The decisions now open Apple’s platform up to competitors.  There is a difference between the two, and, as described, it means Apple must now create and manage its platforms while permitting competitors to profit from those platforms at little or no cost. Apple rejects Europe Apple will fight in Europe.  “There is nothing in the 70-page decision released today that justifies the European Commission’s targeted actions against Apple, which threaten the privacy and security of our users in Europe and force us to give away our technology for free,” the company said. “Their decision and unprecedented fine came after the Commission continuously moved the goalposts on compliance, and repeatedly blocked Apple’s months-long efforts to implement a new solution. The decision is bad for innovation, bad for competition, bad for our products, and bad for users. While we appeal, we’ll continue engaging with the Commission to advocate on behalf of our European customers.” When the fine was initially revealed, the company also said:  “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free. We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way.” My take?  Far from saving Europe’s tech industry, the manner in which the DMA is being applied will make the region even less relevant. Lacking a significant platform of its own, Europe’s approach will reduce choice and increase insecurity. As the clear first target of the DMA, Apple will inevitably be forced to increase prices, charge developers more for access to its developer tools, and will I think simply stop selling some products and services in Europe, rather than threaten customer security. We know it can do this because it has done so before. Fundamentally, of course, the big question remains unaddressed: How much profit it is legitimate to make on any product or service? I imagine the European Commission doesn’t want to go near a question as fundamental to capitalist wealth extraction as that. Can you imagine the collapse in executive bonuses that would follow a decision to define what the maximum profit made in any business transaction should be? Lobbyists across the political spectrum would be appalled — that extra profit pays for their meals. Looking to the extent to which the current application of the DMA seems to favor Apple’s biggest competitors, I can’t help but imagine it’s been paying for a few European meals already. Nice work, if you can get it.  You can follow me on social media! Join me on BlueSky,  LinkedIn, Mastodon, and MeWe. #europe #threatens #apple #with #additional
    WWW.COMPUTERWORLD.COM
    Europe threatens Apple with additional fines
    The European Commission has published its full Digital Markets Act (DMA) decision against Apple, and it’s far, far worse than anybody expected. The Commission, the executive arm of the European Union, has accepted absolutely none of Apple’s arguments against being fined, and the decision threatens yet more existential damage to the company. Apple isn’t winning the argument, and, right or wrong, the decision has fangs. Huge fines, big threats Europe announced in April that it would fine Apple an eye-popping €500 million for noncompliance with the DMA, giving Apple 60 days to comply with its decision. One month later, the Commission published the full ruling against Apple, which details that changes the company made to its App Store rules did not go far enough to bring it into compliance. The decision warns that Apple is subject to additional periodic fines in the future if it fails to comply with the Commission’s strict interpretation of the DMA, no matter how inherently punitive some of its demands may be. (Can anyone else spell “tariffs”?) We’ll know soon enough if there are to be wider consequences to Europe’s demands. Apple now has 30 days to fully comply with the DMA (in Europe’s opinion) or face additional fines. The act itself came into force in November 2022 and began to be implemented against companies defined as ‘gatekeepers’ in 2023. The intention is to stop Apple and others from using their market position to impose anticompetitive limitations on developers.  Who is steering? The big bugbear relates to Apple’s anti-steering restrictions, which prevent developers from telling customers they can purchase services outside the App Store. The DMA demands that Apple let developers offer this option, which Apple does, but Europe argues that the limitations the company makes on doing so are not in compliance with the law. Europe also says Apple’s existing restrictions, fees, and technical limitations undermine the effectiveness of the DMA. That seems to mean Apple cannot charge a commission and cannot warn users of the consequences they face when shopping outside the App Store.  The Commission even plays dumb to the potential significance of permitting developers to link out to any website from within their apps, rather than being constrained to approved (and secure) sites. It says Apple has provided insufficient justification for this restriction and also wants Apple to remove messages warning users when they are about to make a transaction outside the App Store.  That’s going to be particularly pleasing to fraudsters, who may now attempt to create fake payment portals that look like reputable ones. Apple prevented $2 billion in fraud last year, the company has confirmed. Perhaps once the first big frauds take place, the EU may catch up to the online risks we all know exist. While I understand the original aim of Europe’s Digital Markets Act, the demands the Commission is making of Apple appear to go far beyond the original objective, which was to open up Apple’s platforms to competition.  The decisions now open Apple’s platform up to competitors.  There is a difference between the two, and, as described, it means Apple must now create and manage its platforms while permitting competitors to profit from those platforms at little or no cost. Apple rejects Europe Apple will fight in Europe.  “There is nothing in the 70-page decision released today that justifies the European Commission’s targeted actions against Apple, which threaten the privacy and security of our users in Europe and force us to give away our technology for free,” the company said. “Their decision and unprecedented fine came after the Commission continuously moved the goalposts on compliance, and repeatedly blocked Apple’s months-long efforts to implement a new solution. The decision is bad for innovation, bad for competition, bad for our products, and bad for users. While we appeal, we’ll continue engaging with the Commission to advocate on behalf of our European customers.” When the fine was initially revealed, the company also said:  “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free. We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way.” My take?  Far from saving Europe’s tech industry, the manner in which the DMA is being applied will make the region even less relevant. Lacking a significant platform of its own, Europe’s approach will reduce choice and increase insecurity. As the clear first target of the DMA, Apple will inevitably be forced to increase prices, charge developers more for access to its developer tools, and will I think simply stop selling some products and services in Europe, rather than threaten customer security. We know it can do this because it has done so before. Fundamentally, of course, the big question remains unaddressed: How much profit it is legitimate to make on any product or service? I imagine the European Commission doesn’t want to go near a question as fundamental to capitalist wealth extraction as that. Can you imagine the collapse in executive bonuses that would follow a decision to define what the maximum profit made in any business transaction should be? Lobbyists across the political spectrum would be appalled — that extra profit pays for their meals. Looking to the extent to which the current application of the DMA seems to favor Apple’s biggest competitors, I can’t help but imagine it’s been paying for a few European meals already. Nice work, if you can get it.  You can follow me on social media! Join me on BlueSky,  LinkedIn, Mastodon, and MeWe.
    0 Comments 0 Shares 0 Reviews
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