Gambling the Nation Away

Tuesday, Sept 16th, 2025

World News — Surging Deficit Under Carney

Economists expect Canada’s budget deficit to widen sharply to about C$70 billion, or more than 2% of GDP, as Prime Minister Mark Carney boosts defense and housing spending to counter the economic damage from a trade war with the US, a shortfall far larger than the government’s earlier C$42 billion projection. Carney has pledged to run a “substantial” deficit, citing the need to support industry and workers, though debt levels remain lower relative to most G7 peers. His plan to split the budget into operating expenses and capital investments has divided analysts, with some warning it could obscure fiscal transparency. As his government prepares an October budget, Carney faces the challenge of persuading Canadians and opposition lawmakers that higher spending will strengthen the economy, while trimming public service costs after record workforce growth.

Tech — Meet Harvey

FT

Winston Weinberg, a former junior lawyer, has transformed his AI start-up Harvey into a $5 billion company in just three years, building a client base of more than 500 major law firms and corporations including KKR and Bridgewater by using large language models to streamline document review and legal research. Backed by investors such as Kleiner Perkins, Coatue, Sequoia, and OpenAI, Harvey has become one of the fastest-growing players in the legal technology space, doubling down on productivity gains while some critics argue it offers little beyond ChatGPT. The company’s model, which charges a few hundred dollars per user per month, has been bolstered by partnerships with LexisNexis and global expansion plans, though competition from rivals like Luminance, Legora, and Noxtua remains strong. Weinberg, often living out of hotels as the business scales across New York, London, San Francisco, Toronto, and beyond, maintains that despite investor enthusiasm and buzz, the firm’s future rests on proving it can meet lawyers’ high standards for security, speed, and legal specialization.

Business — Progress in Amazon’s Kuiper

Bloomberg

Amazon’s Project Kuiper plans to roll out satellite internet service in the US, Canada, France, Germany, and the UK by early 2026, with more than 200 satellites in orbit by year-end and a long-term goal of deploying over 3,200 units. The company expects to expand coverage to 26 countries by the end of 2026, reach the equator in 2027, and provide full global service in up to 100 countries, including the poles, by 2028. After struggling with rocket delays and satellite production bottlenecks, Kuiper has now launched four batches of satellites, with another scheduled this month, and recently signed its first commercial deal with JetBlue, which will use Kuiper for in-flight Wi-Fi starting in 2027.

Culture — Online Gambling In the Philippines

Bloomberg

Online gambling has exploded in the Philippines since the pandemic, with nearly half of the working-age population now registered on platforms offering slots, sports betting, and casino games, fueling a surge in government revenue even as addiction and debt spark suicides and social crises. Revenues from online gaming license fees are projected to reach $1 billion in 2025, surpassing physical casinos for the first time, making the sector one of the state’s top earners through its regulator, Pagcor, which critics accuse of prioritizing money over welfare. While authorities have begun curbing ads and pushing e-wallets to restrict betting links, President Ferdinand Marcos Jr.’s government remains reluctant to impose an outright ban for fear of fueling illicit operators, leaving millions of low-income citizens vulnerable to predatory platforms. With addiction hotlines overwhelmed and young Filipinos posting desperate pleas for help, lawmakers and church leaders warn the country is sacrificing public health for short-term revenue, offering a cautionary example to other developing nations considering rapid legalization of online betting.

The Daily Spark

The amount of money in passive investing continues to grow, see charts below.

There are three consequences of this development:

1) Reduced market efficiency and price discovery

2) Increased market concentration and volatility

3) Growing correlation and systemic risk

Quote of the Day

“In order to fix it, you need a passionate anger about something that doesn't work well.”

― James Dyson