Texas Attracts NBA: Las Vegas Sands Casino Moguls Make a Move

• Mark Cuban is selling a majority stake in the NBA's Dallas Mavericks to Miriam Adelson and her family.
• Millions have been spent by Adelson and her company, Las Vegas Sands, in Texas to advocate for broader gambling legalization.
• Last year, Cuban, an advocate for legalized gambling, expressed interest in collaborating with Sands.

The revelation that the Adelson family would sell $2 billion in stock to acquire a majority stake in the Dallas Mavericks NBA team left both the sports and gambling communities in a state of shock.

Despite not having any casino resorts in Las Vegas, the city remains the headquarters of the family's empire, and Adelson is the widow of Las Vegas Sands founder Sheldon Adelson, who passed away in January 2021.

Las Vegas has become a top destination for sports enthusiasts, with the NHL's Golden Knights, NFL's Raiders, WNBA's Aces, and Formula 1 Grand Prix. In the near future, Major League Baseball's As are expected to move from Oakland to the desert.

The NBA Commissioner Adam Silver has suggested that it is only a matter of time before Vegas gets a team. LeBron James has expressed interest in bringing basketball to Vegas at some point. Retired NBA legend and former Sacramento Kings minority owner Shaquille O'Neal has also shown interest in a Vegas team. Additionally, the city is set to host the final games of the NBA's midseason tournament.

According to Patrick Rishe, director of the sports business program at Washington University in St. Louis, an NBA team in Vegas could command a price tag in the $6 billion to $7 billion range.

So why is Adelson and her family throwing billions into a Dallas team?

The Adelson and Dumont families are honored to have the opportunity to be stewards of this great franchise. They are committed to investing in the team and partnering with Mark Cuban to build on the team's success and legacy in Dallas and beyond.

Patrick Dumont is both married to Sivan, the daughter of Miriam Adelson, and serves as the president and chief operating officer of Las Vegas Sands.

The Adelsons and Las Vegas Sands have both invested millions of dollars in Texas to influence lawmakers towards legalizing gambling in the state.

In early 2022, the company sold the Venetian, Palazzo, and Venetian Expo center to affiliates of Apollo Global Management and VICI Properties, raising over $6 billion. The company plans to use this capital to pursue gaming licenses in other locations.

Last year, Cuban, the owner of the Mavericks, expressed interest in partnering with Sands to construct a development featuring a new arena and a casino resort if the state legalized gambling more broadly.

The campaign remains in limbo as state lawmakers failed to pass legislation allowing it to be on the Texas ballot. It's unlikely they will attempt to revive it until the 2025 legislative session.

Earlier this month, Cuban stated that Texas is not among the places people save up to vacation, according to The Dallas Morning News. He believes that there is no real destination that people save up for, which he considers a problem. Cuban thinks that resort gaming would have a significant impact.

The Adelsons' ownership of a team in Dallas could strengthen their ties to Texas and potentially gain support for a casino license by leveraging their power and influence over the Mavericks. A company insider advised CNBC that it's wise to strengthen community ties.

Las Vegas Sands has adopted a similar strategy to secure one of the three new casino licenses in New York.

The company has invested millions of dollars and many years of lobbying efforts to convince government and community leaders in Nassau County, Long Island, to support its plans to redevelop the Nassau Coliseum into a destination mixed-use resort. However, the size of its investment may vary depending on whether it is granted a license to offer casino gambling.

If the bets on eventual casino licenses in New York and Texas pay off, Adelson will greatly benefit and continue to own more than 50% of Las Vegas Sands stock.

Despite not having a gambling business in Texas, there is still a possibility that the Mavericks investment will be profitable for the Adelsons.

According to Jason Ader, a former Las Vegas Sands board member and head of SpringOwl Asset Management, the family is highly intelligent, and sports assets have excelled. NBA teams, in particular, are valuable assets that are expected to increase in value.

In 2000, Cuban purchased his stake in the Mavericks for $285 million. Today, Forbes values the team at $4.5 billion, making it the seventh-most valuable NBA team. The Mavericks won the NBA title in 2011 and currently feature superstars Luka Doncic and Kyrie Irving.

The NBA has not commented, and the Mavericks directed inquiries to the Adelsons.

–CNBC’s Jessica Golden contributed to this article.