When Mark Cuban sold a majority stake in the Dallas Mavericks to Miriam Adelson and her son-in-law, Patrick Dumont, the media had a field day. The coverage focused more on the possibility of a casino in Dallas than the impact on the team or the NBA. The two families associated with the Las Vegas Sands Corporation paid $3.8 billion for 73 percent of the Mavericks. Both Dumont and Cuban will serve as governors of the team.
In addition to the team, Dumont and Adelson purchased a 12-acre property that observers believed Cuban had once intended as a site for a new basketball arena. And last summer, the Sands Corporation purchased a 200-acre site across the highway from the former home of Dallas Cowboys. Clearly the principal stockholders of Las Vegas Sands are intensely interested in Texas, and more specifically in Dallas.
They are not alone. Vici Properties and Canyon Ranch formed a partnership to expand resorts in Texas and take advantage of casino gaming should it become legal. Vici is a real estate investment trust (REIT) originally formed by Caesars. It owns the real estate of 53 casinos, hotels, and racetracks. Canyon Ranch is a resort and spa operator. Vici has invested $200 million in Canyon Ranch near Dallas and has invested in or is financing Canyon Ranch properties in other locations.
On the borders of Texas, Cordish and the Chickasaw Nation are upping their ante to remain competitive and draw Texans into Louisiana and Oklahoma. Cordish has also partnered with the Texas Rangers to build a $1 billion mixed-use development. Like Adelson, Cordish is laying the groundwork for a casino-resort if the opportunity presents itself. As Texas heads into another legislative session, gaming will be debated. But Texas has proven to be a hard nut to crack for gaming.
However, the Texas prize is so great that companies like Sands, Vici, and Cordish are willing to play the long game. A Texas real estate consultant put it succinctly. “Texas is the land of opportunity. We have 30 million residents and many certainly would be interested in having casinos closer than Oklahoma. If the regulatory doors are open to such moves, I imagine that many gaming groups would be salivating at the opportunity to expand into Texas.”
Sands, Vici, and Cordish also have shorter-term plans to make a dollar or two while waiting. Their investments and developments should be profitable without a casino.
Likewise, Mark Cuban sees some immediate advantages. In a moment of self-awareness, Cuban said, “I am gaining a valuable real-estate partner through the sale of the team. They’re great at the things I’m not good at.” Cuban has been very successful in his own right; he is estimated to be worth $6 billion and has a track record of a number of successful investments and business ventures. But he also had a few failures when he tried to buy other sport franchises. That may be why he thinks that he and Miriam might make a good team.
Sheldon Adelson was an exceptional entrepreneur; he built a casino empire stretching from the Las Vegas Strip to Macau and all the way to Singapore. When he died, his net worth was estimated at $37 billion. His corporation was noted for its vision and its ability to fund that vision. Adelson took his genius to the grave, but he left behind a very capable team that included his wife Miriam and son-in-law Patrick Dumont. The Sands has continued to be profitable. It has also continued to pursue casino opportunities in New York City and Texas. The company gave up on Miami during Sheldon’s life, but with Fontainebleau pushing for a casino in Miami, Las Vegas Sands might also return to Florida.
Mark Cuban has been friends with the Adelsons for a long time. The company’s history of building an empire and financing multi-billion dollar projects probably attracted him. It is logical to think that he wanted to join that team. With the Las Vegas Sands Corporation’s expertise, support, and access to capital, Cuban could not only take the Maverick franchise to a new level, he could also move past the Mavericks and build a sports empire. And as a bonus, the Mark and Miriam team might also end up with a Dallas casino, a winner for sure. After all, Texas has 30 million people; it is estimated that those 30 million Texans spend nearly $10 billion in Louisiana, Oklahoma, and Las Vegas.
