Pacific • tech’s newest economy is built on vice lower back pain when breathing in deeply

The Big Picture, via Ian Bremmer on Bloomberg TV: The problem with ZTE is that the Chinese are as big as the Americans. They are a technology super power. So if we thump our chest and say, ‘You know what, we want reciprocity,’ China will say, ‘You know what, on technology, we don’t need you.

Welcome to PACIFIC. The Seattle City Council will vote today on the controversial head tax that has pitted the city’s lawmakers against Amazon. After pressure from Amazon and dozens of other Seattle businesses, the Council now appears ready to cut the proposed tax by nearly half, to $275. If the vote passes, Mayor Jenny Durkan still has the ability to veto.

Fun tweet: Neil deGrasse Tyson, over the weekend: Not that anybody asked, but @JeffBezos’ 130-Billion dollars, laid end-to-end, can circle Earth 200 times then reach the Moon back 15 times then, with what’s left over, circle Earth another 8 times.


What’s Next: Legal sports betting will lead to a rush on new apps and services from tech startups and legacy media companies who will join traditional bookmakers and online betting sites, industry analysts tell me. The move will also create a whole new field of content around sports betting, including news, analysis and data analytics.

• You’ll see an explosion of investment and new products from companies trying to get a piece of the increased engagement from sports betting and the revenue that should result, including gaming companies, media platforms and tech companies that want to serve one or both of those.

Who’s In?: We expect to see fantasy sites like Yahoo Sports, DraftKings and FunDuel; media companies like ESPN, Fox Sports and Turner Sports; and a bevy of new startups like Peter Chernin’s Action Network move into this space, either with direct betting services or new content built around betting.

The move is great for broadcasters, leagues and team owners, too, because a surge in sports betting would almost certainly drive a surge in sports viewing. Dallas Mavericks owner Mark Cuban tells CNBC: I think everyone that owns a top 4 professional sports team saw the value of their team double.

The Big Picture: We’re about to witness the launch of a new economy built on vice, not unlike the end of prohibition or the legalization of marijuana. We’re beginning to understand what it means for business, we don’t yet know what it will mean for society and culture.

Our colleague Donie O’Sullivan used the tool to look up some pages aimed at Americans and found more than a dozen Native American pages run from Serbia and Kosovo, US veterans pages run from Mexico, and a Proud Deplorables page run from Israel.

Elon Musk says he is flattening Tesla’s management structure after his engineering chief announced he was taking a leave of absence and another senior executive jumped to Google’s driverless car company Waymo. The move comes as Musk continues to struggle to meet Model 3 production demands.

Bonus: California welcomes Didi: China’s ride-sharing giant Didi Chuxing Technology Co. has been approved to launch live trials of autonomous vehicles on roads in California, WSJ’s Austen Hufford reports. There are now 53 companies with permits for autonomous vehicle testing in California.

Les Moonves and CBS declared war on Shari Redstone and Viacom this morning in a move aimed at blocking a merger between the two sister companies. The move could have major ramifications for CBS as an acquisition target for tech or telecom later down the line.

The Big Picture: CBS believes it is more valuable without Viacom, especially in the eyes of other potential suitors. Back in February, Recode’s Ed Lee said Shari Redstone’s desire to merge CBS and Viacom was shortsighted. Redstone should sell CBS to Amazon instead, he wrote.

• The Golden State Warriors and Houston Rockets have been the two best and most fascinating teams in the NBA for the last two years. They have model front offices, superb coaches and electrifying star players. They reshaped the league. They redefined the sport. And then they reinvented themselves.