betting

Other than “The Odyssey,” the biggest news in Los Angeles film circles last week was the return of the Cinerama Dome.

The iconic theater, which has been closed since March 2020, will be restored and reopened by Sony Pictures Entertainment and its Alamo Drafthouse theater chain. As my colleague Cerys Davies reported, renovations begin next month and will continue until early 2028.

For more than 60 years, the dome has been a landmark on Sunset Boulevard. With its 86-foot-wide curved screen, it has premiered such iconic Hollywood films as 1977’s “Close Encounters of the Third Kind,” and made a cameo of its own in 2019’s “Once Upon a Time … in Hollywood.”

Ever since the dome closed at the start of the COVID-19 pandemic, there have been questions about whether it would return. Filmmakers like “Anora” director Sean Baker and “Baby Driver” director Edgar Wright publicly called for its reopening, while a “Save Your Cinema” preservation campaign led by Benjamin Steinberg kept the geodesic icon in the public eye.

“It was definitely the capital of, like, the movie-going experience in L.A.,” Steinberg told my colleague, adding that he plans to visit the theater two to three times a week when it reopens. “I can’t wait to go back inside the Cinerama Dome and watch movies.”

The theater will be operated by Alamo Drafthouse, though Sony says it plans to keep the “Cinerama” name and exterior branding, as well as the dome’s “traditional concession experience” — meaning you won’t be able to order food and drinks to your seat. (Cinephiles recently have criticized the chain for changing its in-seat ordering system to require use of mobile phones in the theater.)

Alongside traditional theatrical showings, the dome also will include some Alamo Drafthouse specials, including repertory screenings, premieres, events and filmmaker series.

Adjacent to the dome, the 14-screen former ArcLight Cinemas will reopen as an Alamo Drafthouse, Sony said, offering dine-in food and beverages, as well as karaoke rooms and “fan celebrations.”

Sony was interested in the dome even before the Culver City-based studio acquired Alamo Drafthouse in 2024.

“It’s such a great location,” Ravi Ahuja, chief executive and chairman of Sony Pictures, told me. “It’s historic, people love it and the theater was successful before it closed. It’s one of a kind, which is the kind of experience we’re after.”

The move also highlights the opportunity Sony sees in the experiences business — an increasingly important strategy for Hollywood.

The Alamo Drafthouse acquisition was part of this, as was the studio’s recent $100-million investment and minority stake in Cosm, a virtual reality venue operator that has a location at Inglewood’s Hollywood Park.

The studio also has “Wheel of Fortune Live!,” a touring version of the popular game show, “Jeopardy! Bar League,” which was incubated at Alamo Drafthouse, and events for its streaming service Crunchyroll at anime conventions.

“It’s another leg of the franchise stool,” Ahuja said. “Fans want to engage in person with each other. It’s part of a human need when you have deep fandom around something.”

As the theatrical market waxes and wanes and the television business has become more unpredictable, it makes sense that studios like Sony increasingly look to diversify and attract fans in new ways.

After all, people have a lot of things they can do with their time and money. And after a period of slow returns since the pandemic, they’ve increasingly been coming back to in-person activities. To keep loyal fans in the fold, studios need to give them more ways to interact with the stories and entertainment they love, or they’ll move on.

Betting on the experiences business isn’t new. Walt Disney Co. makes the majority of its operating income not from its theatrical movies or streaming service, but from its theme parks and cruise line division. Last year, Universal opened Epic Universe, a major investment in its Orlando theme park resort that indicates the importance of this business for the company and owner Comcast.

But not every company wants or needs to start a theme park business. For one, it’s expensive. And for a studio like Sony, which doesn’t have a lot of kid-focused franchises, it doesn’t really make sense.

As a result, some are getting into the experiences space in more specific and limited ways, such as studio tours or branded attractions.

For Sony, that’s meant building a business around these in-person offerings that align more with its adult-leaning audiences. Lionsgate has a “John Wick Experience” in Las Vegas, while Warner Bros., among other things, recently debuted “Harry Potter: A Hogwarts Express Adventure” train event at the Southern California Railway Museum in Perris. (Universal licenses Harry Potter from Warner Bros. for inclusion in its parks.)

For most studios without a major theme park presence, this kind of location-based entertainment is still likely a relatively small part of their corporate revenue, potentially less than 1%, said Dennis Spiegel, founder and chief executive of the International Theme Park Services, Inc. consulting firm. But what these experiences do is help lengthen the life of a franchise by keeping licensing revenue flowing and keeping brands relevant between film releases, he said.

“Hollywood increasingly sees it as an essential part of maximizing the lifetime value of its intellectual property,” he wrote in an email. “In many ways, we have seen how these experiences have become as much of a marketing engine as they are a profit center.”

As for the Cinerama Dome, don’t take it as a sign that Sony is looking to build out an exhibition empire. The studio is looking for only special and selective deals like the dome, Ahuja said, and there are no plans to add more L.A. exhibition locations.

Stuff We Wrote

Film shoots

Number of the week

Christopher Nolan’s “The Odyssey” continued its dominance at the box office in its second outing with a three-day domestic haul of $90 million, down only 27% from its debut weekend.

Internationally, the Universal Pictures film raked in $137.6 million for a worldwide total of $652 million.

The big box office performance came as an unauthorized copy of the film leaked online over the weekend. The studio said it “immediately initiated takedown protocols” once it became aware of theillegal posting on X and “will pursue all appropriate remedies to protect our content and intellectual property rights.” The post was viewed more than 2.1 million times before a takedown notice replaced the copy of the film.

What I’m watching

I did not expect Amazon MGM Studios’ “The Sheep Detectives” to deliver a profound message on death and grieving when I sat down to watch it with a friend, but those talking ovine sleuths really got to me.

ESPN’s 30 for 30 will launch the first two of six podcast episodes July 28 examining the gambling scandal that resulted in Shohei Ohtani‘s interpreter Ippei Mizuhara going to prison for stealing nearly $17 million from the baseball superstar and gambling it away.

The podcast, titled “The Betrayal of Shohei Ohtani” is told by Tisha Thompson, the ESPN investigative reporter who led the outlet’s groundbreaking coverage in March 2024.

Ohtani, who signed a record 10-year, $700-million contract with the Dodgers in December 2023 after playing six years with the Angels, apparently trusted Mizuhara implicitly. He said he was unaware that the interpreter regularly ransacked his bank account for more than two years.

The podcast will recount Mizuhara’s life before he began working for Ohtani in 2013 when both were with the Hokkaido Nippon-Ham Fighters in Japan. When Ohtani moved to the United States to play for the Angels in 2018, Mizuhara came with him.

Thompson interviews childhood friends and colleagues of Mizuhara, but the interview that will generate the greatest interest is a 90-minute phone call she had with him 16 hours before she published the story. Thompson got permission from Mizuhara to tape the call and it remains the only interview he has given.

Mizuhara told her that Ohtani had helped him pay off his gambling debts, a story he recanted a day later. The Dodgers fired him the same day they opened the 2024 season with a game against the San Diego Padres in Seoul, South Korea.

IRS special agent Chris Seymour gave Thompson the first interview of his career, and what he and prosecutors say about Mizuhara’s motive goes beyond the narrative that he had a gambling addiction, according to ESPN.

Another interview by Thompson is with bookmaker Mathew Bowyer, who explains on tape that his relationship with Mizuhara began during a hotel poker game with Angels players. Bowyer pleaded guilty last year to running an illegal gambling business, money laundering and filing a false tax return. He was sentenced to 12 months and one day in prison and ordered to pay $1.6 million in restitution to the IRS.

Episodes one and two — “The Letter O” and “The Interview” — will debut July 28, followed by episodes dropping every Tuesday and Thursday through Aug. 11.

WASHINGTON — As Spencer Pratt fell behind in the Los Angeles mayoral primary, an unexpected group began claiming election fraud: people tracking the Republican’s success on prediction markets, the increasingly popular online exchanges on which people can make bets on almost anything.

“Crazy how much voter fraud can be done with mail in ballots,” one user following bets on the mayoral race wrote last week on Kalshi, one of the top trading platforms.

“Same old California fraud,” said another who had bet that Pratt would win.

Election fraud claims extended to social media, where a handful of influencers who post content for prediction market platforms questioned the ballot count. “It’s a dead heat on Kalshi,” one user wrote on social media. “Is CA cheating to get Spencer Pratt out?”

Kalshi told the influencers to delete the posts, which violated company guidelines. Polymarket, the other leading platform, directed them to remove the paid partnership label from those posts.

The amplification of election misinformation by users who had money staked on the mayoral race adds a new twist to evolving scrutiny of prediction markets, and scholars say the ability to bet on elections broadly raises questions about whether the exchanges could alter how Americans engage in democracy.

“Elections are not a game,” said Davina Hurt, director of government ethics at the Markkula Center for Applied Ethics at Santa Clara University. “[If market] probabilities begin influencing donor decisions, media attention, the energy around [campaign] volunteers — at that point, markets aren’t just observing the election. They’re a part of it.”

Fans of the exchanges say they are powerful tools that can help decision makers, and company leaders have touted them as highly accurate predictors that can act as an antidote to misinformation and provide election insights.

“By shifting focus from ‘what people say’ to ‘where they put their money,’ and filtering out social media noise and pundit bias, we are providing a level of clarity and predictive power that cannot be matched,” said Kalshi spokesperson Dani Lever .

But these markets’ rapid rise has also raised a host of questions among members of Congress, state lawmakers and others — about betting on elections, wars and other political events, about potential insider trading, and about whether the platforms should be left to self-regulate. Some states are also in legal battles with the federal government over whether the activity amounts to gambling, which they seek to regulate.

“It’s like we’re in the 1930s with financial markets — we have some things that we want to regulate and restrict [as a country], and we’re sort of in the early stages of trying to lay out what the rules are,” said Koleman Strumpf, an economist at Wake Forest University.

Concerns about insider trading

The discourse around the Los Angeles mayoral race was the latest to raise questions at the intersection of prediction markets and politics. Earlier this year, an Army soldier was indicted after allegedly using his knowledge of the planned U.S. operation to capture former Venezuelan leader Nicolas Maduro to make bets on it, winning more than $400,000. He has pleaded not guilty.

Around the same time, several anonymous users reportedly earned $2.4 million combined by making remarkably prescient bets on the Iran war, prompting concern in Congress about insider trading. And during the primary elections, Kalshi fined a few politicians for betting on themselves, while the Justice Department began investigating a former congressman on similar charges.

Kalshi co-founder Luana Lopes Lara speaks at a conference in Santa Monica, Calif., in April.

(Anna Webber / Inc.)

The episodes set off a debate in Washington. The Republican-led House Oversight Committee opened an investigation into potential insider trading, and a bipartisan group in Congress has introduced a flurry of bills seeking to put up guardrails. It remains unclear whether any will pass this session.

The chatter in Congress appeared to lead the Commodities Futures Trading Commission, which regulates prediction markets, to propose a new framework last week to govern issues raised by lawmakers, such as potential betting on wars. Commission Chair Mike Selig said the proposal would allow for scrutiny of suspicious activity “while letting legitimate markets move forward pursuant to the public interest.”

The markets commission under former President Biden was viewed as somewhat skeptical of prediction markets; the agency under President Trump — whose eldest son holds advisory positions at both Polymarket and Kalshi — has been seen as more favorable to the industry. The federal government has sued several states over their attempts to regulate the markets under state laws banning sports gambling and other measures.

Sen. Adam Schiff (D-Calif.), who has introduced legislation on the topic, said the agency’s framework would benefit the industry at the expense of the public interest.

The agency lacks “the leadership, will and investigative staff needed to confront the dangers of election misinformation, insider trading, and more,” Schiff said, “and seems content to allow the industry to police itself.”

Making bets

As California’s primary neared, people staked their dollars on the state’s races in droves. On Kalshi, trading volume on one contract about who will win the L.A. mayoral race in November had reached more than $117 million as of Tuesday.

Prediction market users trade on the outcome of future events, making money if they’re correct and losing money if they’re wrong. Someone can purchase a contract on the prediction that L.A. Mayor Karen Bass will win in November, a yes contract, or on the prediction that she will lose, a no contract.

On Tuesday, Bass contracts on Kalshi were selling at 63 cents each for yes and 38 cents for no, meaning the market was forecasting a 63% chance of her winning. Users receive $1 per contract if their prediction is correct, creating a profit on their initial investment.

Prediction markets generally create more accurate forecasts than political polls, according to Strumpf, whose research has examined 30 years of prediction markets in various forms.

Many of the issues critics raise are theoretical and have not been seen in practice, Strumpf said. By his analysis, there is no evidence that the markets have ever influenced an election outcome. He said serious traders tend to do extensive research in order to make money, meaning their bets are educated.

Rep. Mike Levin (D-San Juan Capistrano), who has introduced legislation to prohibit event contracts involving terrorism, war, assassination and deaths, said the platforms may be useful in some cases but shouldn’t be left to police themselves. He said he’s concerned that the markets create “all the wrong incentives” for people, including political candidates and officials, to abuse inside knowledge.

“I don’t trust them to self-regulate at all,” Levin said of the companies. “The federal role should be guardrails that are reasonable and pragmatic.”

‘The sanctity of our elections’

Skeptics’ concerns regarding elections largely center around the markets’ introduction of a new way for money to potentially influence politics.

They say the desire to elevate a candidate’s market odds could create an incentive for market manipulation, and they worry that the votes of Americans using the market could be influenced by their desire to profit.

“This has real impacts for the sanctity of our elections,” said Assemblymember Maggy Krell (D-Sacramento), who raised concerns about how prediction markets could impact the democratic process in a March letter to the state’s Fair Political Practices Commission. (California lawmakers are looking at the issue, a spokesperson for Assembly Speaker Robert Rivas (D-Hollister) said, though none of the bills introduced this year have yet moved forward.)

The platforms create a potential new channel “for dark money to flow into our elections,” Krell said. “Specifically, someone who’s opposing or supporting a candidate could potentially use sites like Kalshi to elevate that candidate and impact the entire pool.”

The industry has endeavored to “get out in front” of concerns by creating their own policies aimed at preventing insider trading, market manipulation and other issues, said attorney Ronak D. Desai, partner and head of the congressional practice at the Washington law firm Paul Hastings.

Kalshi has a ban on those practices and has banned markets tied directly to death and war, Lever said. It also screens all new users and, in the first quarter of this year, blocked more than 100 potential insider trades and referred more than 20 cases to law enforcement.

In the case of the military member who bet on the United States’ operation in Venezuela, for instance, Polymarket caught the activity and referred the case to the Justice Department, a spokesperson said. The company has referred nearly 100 cases of suspicious activity to law enforcement, he said.

Election markets are not offered on Polymarket’s U.S. exchange — though users in the U.S. and other countries that ban the company’s international exchange are widely reported to access it using online tools.

“Polymarket prohibits trading based on stolen information, illegal tips, or information obtained in breach of a duty of trust, confidentiality, or other legal obligation,” the Polymarket spokesperson said in a statement.

Aaron Klein, senior fellow in the Center on Regulation and Markets at the Brookings Institution, predicted that pressure for further regulation would continue to mount.

“The top goal of a society is to have free and fair elections,” Klein said. “At a time in our nation’s history where people are doubting the integrity of elections and foreign governments are stoking those flames, we ought to be pretty careful.”

Oscar-winning director Martin Scorsese is joining the ranks of entertainment industry power players embracing generative AI.

Black Forest Labs, the German AI startup behind the text-to-image model Flux, announced Tuesday that Scorsese is joining the company as an advisor.

The company unveiled the collaboration on its website with a video of the auteur using Flux to storyboard scenes, which involves mocking up shots before filming.

“This conveys a cinematic intelligence,” he said in the video, discussing the program’s uses with Black Forest Labs co-founder and Chief Executive Robin Rombach and Creative Artists Agency co-founder Michael Ovitz. According to the New York Times, Ovitz, an investor in Black Forest Labs, helped bring Scorsese aboard, along with Rick Yorn, Scorsese’s talent manager, whose investment firm BroadLight Capital is also an investor.

In a statement, Scorsese emphasized the potential for AI to transform the storyboarding process.

“For 70 years, I’ve been creating my own storyboards. There’s always been this problem of how do you communicate what you see in your head to your cast and crew. There are some things you have to see and feel,” he said. “I’m interested in the intersection of technology and storytelling, and seeing how that can push the bounds of creativity to create deeper and richer experiences for audiences.”

Traditionally, storyboarding is done by hand or digital illustration through a collaboration between directors and storyboard artists.

Scorsese’s public espousal of this technology marks the latest shift in attitude about AI from powerful Hollywood creatives. Since generative AI became widely accessible in 2022, Hollywood has struggled to navigate its power to rapidly upend industry norms.

Scorsese is not the first decorated filmmaker to embrace AI. James Cameron, the Oscar-winning “Avatar” director, is on the board of directors for Stability AI, where Rombach worked before launching Black Forest Labs. In his keynote address at the AI on the Lot conference last week, director and screenwriter Paul Schrader expressed a mixture of admiration and caution toward the technology.

“AI does not create — it combines,” Shrader said. “If AI wants an idea, it has to go to where that idea already exists. Of course, you can make the argument that that’s all artists do anyway, and to a degree that’s a valid argument. But you still have to come up with something.”

Not everybody is on board with generative AI’s potential transformations. Guillermo del Toro and Seth Rogen spoke out against the technology at Cannes last month, and below-the-line wokers, screenwriters and actors have continued to express apprehension and even horror at the prospect of being replaced by generative AI.

Scorsese’s entry into the AI field might especially shock fans given his traditionalist approach to filmmaking. In 2019, he famously criticized Marvel movies, calling them “theme parks” and “not cinema.”

“It isn’t the cinema of human beings trying to convey emotional, psychological experiences to another human being,” he said in a 2019 interview with Empire Magazine.

Even if his filmmaking centers humanity, Scorsese’s partnership with Black Forest Labs demonstrates his willingness to incorporate non-human assistance.

“Remember, cinema is a young medium, only around 125 years old, so we have to be open to how it can evolve,” he said in the statement on Black Forest Labs’ website.

The Preakness Stakes at Laurel Park, Md., could feature a historic finish even if there is no chance to produce a Triple Crown winner this year.

The Preakness post time is 4:01 p.m. PDT. The race will air on NBC.

Kentucky Derby winner Golden Tempo isn’t running the Preakness. Cherie DeVaux, the first woman to train a Derby winner, said the schedule was too tight for Golden Tempo, with two weeks between races.

But trainer Brittany Russell has prepared Taj Mahal for the race and could follow up on DeVaux’s big win with one of her own. Russell would be the first female trainer to win the Preakness and could extend a potential female trainer Triple Crown bid in an industry long dominated by men.

“It would sort of feel like probably a fairy tale,” Russell said of a potential win. “ … It would mean an awful lot.”

Iron Honor in the ninth post position opened the day favored slightly at 9-2. Taj Mahal in post No. 1, Chip Honcho in post No. 6 and Incredibolt at post No. 12 were not far behind with 5-1 odds.

Taj Mahal has one other edge, winning three previous races at Laurel Park, home of the Preakness.