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Texas Billionaires Betting On Gambling Technology

Dirk Nagel June 22, 2024 4 min read
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Texas Billionaires Betting On Gambling Technology

The people who run the major pro sports franchises in the state of Texas are generally accustomed to getting what they want. It isn’t often that they hear the word no as a response to any of their requests.

However, when it comes to the legalization of sports betting and casino gambling in the Lone Star State, they are discovering that messing with the Texas government in terms of their pro-gambling lobby to gain the legalization of online sports bookies in Texas is not turning out favorably for them.

Considering that some of these Texas sports owners rank among the most powerful movers and shakers in the US gambling industry, this is certainly a bet they have grown accustomed to winning.

Miriam Adelson is the majority owner of the NBA’s Dallas Mavericks. She’s also in charge of the mighty Las Vegas Sands gambling empire. In fact, Adelson, believed to be among the richest women in the world, sold $2 billion in Sands stock to get the funds to purchase controlling interest in the Mavericks from Mark Cuban.

Meanwhile, Tilman Fertitta is the owner of the NBA’s Houston Rockets. Although he made his fortune in the restaurant industry, the billionaire also owns the famous Golden Nugget casino franchise.

They’ve found themselves with a formidable foe in Texas, however. Dan Patrick is dead set against the legalization of any form of gambling in his state. No, not the popular sports talk radio host and former ESPN personality. This Dan Patrick is the Lieutenant-Governor of Texas. And as the locals might say, he can be a real ornery cuss.

It’s making for a real contest in the Texas government as these two rival camps continue to do battle on the gambling front. Another showdown is expected between the two sides when the next session of state government resumes in 2025.

Litany Of Failed Bids

Though they’ve failed to advance the gambling legislation to the point where it can be legalized, it’s not for a lack of trying from the pro-gambling forces.

There have been bills seeking to legalize sports betting in front of the state government in Texas as far back as 2015. In all, eight bills seeking to legalize some form of gambling in the state have been put forth, and so far, they are 0-for-8.

The latest attempt came in 2023. House Bill 1942 proposed the legalization of sports betting in the state. It passed through the House by a 100-43 count but died on the Senate floor.

Adelson Moving Strongly Into Texas

Though she didn’t hold a physical presence in Texas prior to purchasing the Mavericks, Adelson was already looming large in the Lone Star State. Over the years, she’s been donating millions of dollars to state Republicans, hoping to sway them to the point where a bill legalizing sports betting and casinos in Texas can get pushed through to become a law. Adelson has been doing so since 2020.

Cuban, who is maintaining control of the team’s basketball operations, is also very pro-gambling. He wants to make Texas a casino resort destination for tourists.

“Look at the size, scope, and economics of resort destinations with and without a casino,” Cuban told Bloomberg News. “Even though the casino isn’t a huge part of the economics, it supports scale and depth.”

According to Forbes, Adelson, 78, holds a net worth estimated at over $32 billion. She ranks as the fifth-richest woman in the USA. In 2022, she donated $2.3 million for a political action committee that was assembled to support pro-gaming lawmakers. That same year, she wrote a $1 million check to Texas Governor Greg Abbott’s reelection campaign.

There’s a population of more than 29 million people in Texas. Speaking in front of a Texas trade group, Sands executive Andy Abboud described the state as the “biggest plum still waiting” for legalized gambling among the 12 US states yet to legalize it.

“Having [the Adelsons’] presence here in Dallas certainly helps the conversation,” Texas State Senator Carol Alvarado told Bloomberg News. “It’s not a slam dunk. It doesn’t mean it’s going to automatically happen, but it definitely will help to elevate the conversation and maybe get people to think twice about it.”

Fertitta Also Friendly With Texas Government Officials

Fertitta is also no stranger to lobbying key officials in order to get the legalization of gambling to the front burner. He’s been seen sitting courtside at Rockets games with Patrick, the biggest nemesis to legalization among the top government people in the state.

Fertitta has long been a proponent of legalizing casino gambling in the Lone Star State.

“Let’s do something to bring tourism and the business traveler and conventions to Texas . . . and these need to be billion-dollar properties that do that,” Fertitta told Bloomberg News. “We need to do it right and build the casinos and not have a bunch of slot machines at every single little grocery store.”

Patrick Steadfast In His Opposition To Gambling

Governor Abbott has stated he’s not against the legalization of gambling in his state. Speaker of the House Dade Phelan – who recently received a $660,000 campaign donation from Adelson – is also not opposed to the idea.

Patrick, on the other hand, seems dead set against the notion.

In his role as President of the state senate, Patrick was instrumental in assuring that the latest gambling legalization bill met an untimely death on the Senate floor.

“We don’t waste time on bills without overwhelming GOP support,” Patrick gleefully tweeted afterward.

Patrick’s stance is not only seemingly in stark contrast to that of the state’s other government leaders, but it also flies in the face of what the majority of Texans say they want.

A 2021 poll about the legalization of gambling in the state showed that 43% of Texas people were in favor of legalization. Just 26% stood in opposition to legal sports betting and casino gambling. There were 31% who were either undecided or ambivalent about the issue.

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