AUSTIN ― Casino and resort giant Las Vegas Sands has hired dozens of lobbyists and contributed millions of dollars to dozens of Texas lawmakers and legislative groups ahead of a renewed push to expand gambling this session.
Among those who received the biggest contributions was Texas House Speaker Dade Phelan, R-Beaumont, who received $300,000 from the Texas Sands PAC, according to campaign filings made with the Texas Ethics Commission. It’s the first time Phelan’s political donations have been made public after he was unopposed for reelection in 2022.
Candidates who are running without an opponent do not have to submit regular campaign filings.
The Sands and its associated political action committees and entities gave $3.1 million in campaign donations last year, with more than half of the money, at least $1.7 million, going to Republicans. Democratic lawmakers and candidates received about $603,500.
As of the first week of the 2023 session, Las Vegas Sands had brought on at least 63 lobbyists, more than any other company or entity. They’ve pledged to pay their lobbyists up to $5.9 million this year, according to data from the Texas Ethics Commission. Other gaming interests are also investing in lobbyists, the data shows, including sports betting sites like DraftKings and FanDuel and other destination resort companies like MGM Resorts.
Expanding gambling in Texas, especially the push to allow several major casino-resort developments, is a high-stakes issue not just because it would create a new revenue stream for the state, but also because it could be a game changer in terms of tourism and economic development.
Some industry experts say the proposal to legalize digital sports gambling is likely to be approved sooner than the advent of full-blown casino-resorts in Dallas-Fort Worth and other major cities. But it’s the casino market that is most alluring to the Sands and other Las Vegas-style gambling companies ― as well as tourism and economic development leaders in the state’s largest cities.
Attempts to expand some form of gambling in past sessions have been unsuccessful, but lobbyists keep trying. The Sands hired 76 lobbyists to the tune of $6.7 million in 2021, second only to Dallas-based communications powerhouse AT&T.
Phelan announced a few weeks ago in an interview with reporters he is open to bringing resort-style casinos to Texas. He said he doesn’t want to see slot machines inside convenience stores.
“I want to see destination-style casinos that are high quality and that create jobs and that improve the lifestyle of those communities,” Phelan said Jan 12.
Phelan’s office declined to comment on the donations.
Other than Phelan, the top recipients of donations from the Sands were Gov. Greg Abbott and Lt. Gov. Dan Patrick. Abbott received $200,000 from the Sands and an additional $1 million donation from Miriam Adelson, the widow of Sheldon Adelson, who was the chairman and CEO of the Sands.
Abbott was the only political candidate to receive a donation from Adelson last year. In November, a spokesperson for Abbott told the Houston Chronicle he was open to expanding gambling.
A spokesperson for Abbott did not respond to a request for comment. Matt Hirsch, a spokesman for the Texas Sands PAC, which was formed in January 2022, said in a statement the group will continue to engage with state and local leaders throughout the session.
“We appreciate the willingness of these legislators to engage in an open dialogue about the tremendous economic benefits, including the tens of thousands of jobs, these destination resorts will create for Texas,” the statement said.
The quantity of donations ― sprinkled among numerous elected officials ― provide insight into the effort the gambling industry will make this session as it hopes to expand gambling in some way in Texas. The Sports Betting Alliance has hired former Gov. Rick Perry as a spokesperson in its push to get sports gambling legalized.
Other legislative groups that received donations include the Texas Republican Legislative Caucus, the Mexican American Legislative Caucus and the Senate Democratic Caucus.
Rep. Craig Goldman, R-Fort Worth, chair for the Republican Caucus in the House, told the Fort Worth Report that donations do not impact how he votes.
“I do not vote in any way shape or form for or against anything based on anybody’s campaign contribution,” he told the outlet. A spokesperson for the caucus said Goldman’s comments could be applied to the caucus’ decision making.
Rep. Victoria Neave Criado, who chairs the Mexican American Legislative Caucus, said in a statement: “Support for the caucus allows young leaders the opportunity to work in our Capitol and helps us to protect voting rights for all Texans.”
Sen. Carol Alvarado, D-Houston and chairwoman of the Senate Democratic Caucus, has filed SJR 17, a constitutional amendment.
Under her proposal, the Legislature could decide whether to legalize sports betting and whether a newly created Texas Gaming Commission could issue casino licenses for up to four upscale “destination resorts,” with minimum investments of $2 billion in the Dallas and Houston region.
In a statement, Alvarado said the caucus doesn’t have a position on expanding gambling and that the campaign donations don’t influence a position the caucus takes.
The Sands has owned casinos and other properties in Las Vegas going back to the 1960s, but the company now considers Asia the backbone of its gambling business.
In recent years, the Sands has been mobilizing to become a bigger player again in the U.S. casino-resort industry, and made Texas ― considered one of the richest untapped markets in the field ― a prime target. It has since poured millions of dollars into its push here.
Texas isn’t the only prime target for the Sands, though. The company has emerged as a leading contender to get a license to own and operate one of three casino-resorts in New York that have already been approved by voters.
The competition for the New York licenses is intense and includes multiple industry giants, including MGM Resorts International, Caesars Entertainment and Hard Rock International. The Sands last month released initial details of its proposal, which would have a $4 billion casino and resort as its centerpiece in Long Island — a price tag more than triple the cost of Arlington’s AT&T Stadium, which opened in 2009.
Casino operators for years have considered Dallas-Fort Worth a prime region for a casino resort if gambling is legalized in Texas. Some business leaders have long coveted first-class gaming development in Dallas and Fort Worth.
But some past legislative proposals gave preference to allowing major horse race tracks to convert to full-blown casinos, which would give Grand Prairie the first location in D-FW because it’s home to Lone Star Park race track. That facility is in an existing entertainment district on I-30 at Beltline, near Six Flags, AT&T Stadium and Globe Life Field. It’s owned by a subsidiary of the Chickasaw Nation, which owns WinStar World Casino in Oklahoma, billed as the world’s largest casino, just an hour north of D-FW.
Dallas Mavericks owner Mark Cuban told The Dallas Morning News his goal is to build a new arena in the middle of a resort and casino. Cuban said it would be built in partnership with the Sands.
While not taking a stand on allowing casinos, other billionaire sports team owners in the state have voiced support for legalizing sports gambling in Texas. Dallas Cowboys owner Jerry Jones has suggested Texas could stand to benefit from the money gambling would bring to the state, and improve areas like education. And Dallas Stars owner Tom Gaglardi said this week he thinks the Legislature could make a move on digital sports gambling soon.
Staff writer Lauren McGaughy contributed to this report.
