HOUSTON – (Realty News Report) – Las Vegas Sands Corp., a major global casino operator, is preparing to make a significant push into Texas.
The company has engaged more than 50 Texas lobbyists to work during the current legislative session in Austin.
“Texas, obviously, is an extraordinary market,” Las Vegas Sands Chairman and CEO Rob Goldstein said during a conference call with industry analysts in late January. “You can’t deny the power of Texas, the size and scale. I was there last week, and it was a fascinating couple of days.”
Goldstein was named CEO after the Jan. 11 death of company founder Sheldon Adelson. In the six months before his passing, Adelson gave more than $5 million to Texas politicians, including $500,000 to Gov. Greg Abbott.
“We’re having conversations,” Goldstein added. “We’re looking, kicking the tires and we’ll advise you when something emerges from Texas. It would be a great casino market for a land-based venue. It could be a huge opportunity.”
In early January, Las Vegas Sands hosted Texas lobbyists on the Las Vegas Strip for a three-day retreat. The company operates The Venetian Resort and the Palazzo in Las Vegas, as well as major revenue-generating casinos in Macao and Singapore.
Las Vegas Sands is not the only casino company active in the Texas Legislature. Caesars Entertainment and MGM Resorts also have lobbyists working in Austin.
Houston billionaire Tilman Fertitta, owner of the Golden Nugget casinos and chairman of the University of Houston Board of Regents, has been politically active for years.
On Monday, Fertitta announced he was taking his Landry’s and Golden Nugget businesses public. He said the company will emphasize casinos going forward. Fertitta could not be reached for comment on current gambling advocacy in Texas, though he has supported expansion in recent years. He currently owns five Golden Nugget properties, including locations in Las Vegas and western Louisiana.
The COVID-19 pandemic devastated the hospitality and casino sectors. Las Vegas Sands’ 2020 results were hurt by the pandemic, but the company reported nearly $14 billion in revenue in 2019, giving it the financial capacity to expand into Texas’ large and largely untapped gambling market.
At present, three casinos in Texas are operated by Native American tribes, located in Livingston, Eagle Pass and El Paso.
Supporters of expanded gambling argue that full-scale casinos in Texas’ largest cities would produce substantial tax revenue, create jobs, boost tourism and help a convention business and hotel industry hit hard by the pandemic. Many Texans currently travel out of state to gamble, visiting casinos in Lake Charles, Louisiana, and Oklahoma.
Andy Abboud, a government relations executive for Las Vegas Sands, told Gambling News in December that Texas could become a world-class gambling destination on par with markets such as Japan or Brazil.
Abboud argued Texas should not settle for small suburban slot rooms but instead attract four-star casino resorts costing a billion dollars or more each. He said state law should favor large-scale developments to maximize economic benefits.
For now, casino companies are watching closely to see whether the state Legislature will move forward on gambling reform.
“Texas is considered the biggest plum still waiting to be out there in the history of hospitality and gaming,” Abboud said.
Feb. 2, 2021 Realty News Report Copyright 2021
File: Texas Hold’em: Going All-In
Caption: Las Vegas Strip. Copyright Photo 2021 by Ralph Bivins, Realty News Report
File: (2) Las Vegas Sands. Texas Hold’em: Going All-In. Casino gambling. Legislature 2021.