The sports and gambling industries were both taken aback by the news that Miriam Adelson and her family would be selling $2 billion in Las Vegas Sands stock to purchase a majority ownership in the NBA’s Dallas Mavericks.
Despite the absence of its casino resorts in the city, the family’s empire is still headquartered in Las Vegas. Adelson is the widow of Sheldon Adelson, the founder of Las Vegas Sands, who passed away in January 2021.
And with the NHL’s Golden Knights, the NFL’s Raiders, the WNBA’s Aces, and a Formula 1 Grand Prix, Las Vegas has emerged as the premier sports destination. The A’s of Major League Baseball are anticipated to move from Oakland to the desert soon.
Similarly, NBA Commissioner Adam Silver has stated that it is a question of when rather than if Vegas acquires a team. LeBron James has expressed interest in eventually bringing basketball to Las Vegas. Shaquille O’Neal, a former Sacramento Kings minority owner and retired NBA legend, has also shown interest in a Vegas team. The NBA’s midseason tournament final games will also take place in the city.
The head of Washington University’s sports business program in St. Louis, Patrick Rishe, estimates that an NBA team in Vegas could fetch a price tag of between $6 and $7 billion.
Why, therefore, are Adelson and her family investing billions in a Dallas franchise?
“The Adelson and Dumont families are honored to have the opportunity to be stewards of this great franchise,” they said in a statement provided by News Channel. We are excited to work with Mark Cuban to continue the team’s success and legacy in Dallas and beyond through our dedication and further investment in it.
Sivan, the daughter of Miriam Adelson, is married to Patrick Dumont. In addition, he leads Las Vegas Sands as its president and chief operating officer.
The Adelsons have already spent millions on lobbying and political contributions in Texas in an effort to persuade legislators to approve gambling on a wider scale. The same objective has been pursued by Las Vegas Sands for years and millions of dollars.
In order to raise more than $6 billion, the company sold the Venetian, Palazzo, and Venetian Expo center to affiliates of Apollo Global Management and VICI Properties in early 2022. The business has stated that it plans to use the money to apply for gaming licenses in other jurisdictions.
If the state legalized gambling more widely, Mavericks owner Mark Cuban stated late last year that he would be open to working with Sands to develop a project that included a new arena and a casino resort.
That failed, and the campaign remains unfinished. Legislation that would have given Texas voters the option to choose it on the ballot was not advanced by state lawmakers. They probably won’t try it again until the 2025 legislative session.
Texas isn’t one of the destinations you want to save up for a vacation, Cuban stated earlier this month, as reported by The Dallas Morning News. “There’s no actual place you save money for. That’s an issue, and I believe resort gaming would have a significant effect.
The Adelsons’ connection to Texas will be strengthened by owning a team in Dallas.
With their sway over the Mavericks’ future, they might be able to use both a carrot and a stick to win local support for a casino license. Building stronger community ties is just smart, an insider from the company.
Las Vegas Sands has used a similar tactic to win one of the three new casino licenses that will be given out in New York.
The business has poured millions of dollars and years of effort into lobbying Nassau County government and community leaders on Long Island. In addition, the business has promised to transform the Nassau Coliseum into a popular mixed-use resort whether or not it is granted a license.
However, the extent of its investment is likely to be contingent upon its ability to provide casino gaming.
If Adelson’s wagers on potential casino licenses in Texas and New York come to fruition, he could profit handsomely. She will still hold more than 50% of the stock in Las Vegas Sands with her family.
Even without a casino in Texas, there’s still a good chance the Adelsons’ investment in the Mavericks could be profitable.
Spring Owl Asset Management’s Jason Ader, a former Las Vegas Sands board member, said, “It’s a very smart family, and sports assets have performed great.” “NBA teams are valuable assets that will probably keep growing in value.”
For $285 million, Cuban acquired his ownership share in the Mavericks in 2000. The team is currently worth $4.5 billion, the seventh-highest amount in the NBA, according to Forbes. 2011 saw the team win the NBA championship. Superstars Kyrie Irving and Luka Doncic are currently featured in it.
Cuban has been contacted for comment. The Mavericks forwarded queries to the Adelsons, and the NBA has not responded.
