How Mark Cubans Mavs sale could push gambling expansion forward in Texas – The Dallas Morning News

Mark Cubans surprise sale of a majority stake in the Dallas Mavericks to Las Vegas Adelson family could set the stage for another battle in Austin over the future of legalized gambling and sports betting in Texas.

The Dallas billionaire is a proponent of legalizing gambling in Texas to bring in resort casinos. Though the state has killed any efforts to allow sports betting or gambling, industry experts say Cubans move could be what finally pushes Texas lawmakers to act.

I have to believe that the political leadership has got to be a little tired of looking at all the tail lights leaving Texas, said Alan Feldman, a distinguished fellow at the University of Las Vegas International Gaming Institute. Theres a lot of money leaving the state. And at some point, I think theyre going to realize if they dont get in the game, Texas is just going to be exporting money to other states.

Cuban sold a majority interest in the NBA team to Miriam Adelson, the biggest shareholder in one of the worlds biggest casino operators, Las Vegas Sands, and a widow to Las Vegas casino mogul Sheldon Adelson. Cuban made clear last year that he hoped to eventually partner with the Adelson family to build an arena and resort-style destination in Dallas.

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Legalizing casino gambling requires an amendment to the Texas Constitution, which needs two-thirds approval in both chambers of the state Legislature to put it before voters.

Texas is one of the biggest states to not yet legalize casino gambling or sports betting. But with a fervent fanbase for its sports teams and a growing population, Texas, and Dallas specifically, are seen by proponents as perfect locations for casinos and gambling companies to set up shop, said Andrew Brandt, executive director of the Moorad Center for the Study of Sports Law at Villanova Universitys Law School.

Texas is such a big stage. So much of a revenue base could come from sports betting and its the reason why a lot of states have implemented it, he said. Its an anomaly that large states like Texas and California are sitting on the sidelines in this industry.

The Texas Sports Betting Alliance, relying on a report from Eilers & Krejcik Gaming, estimates that more than $8 billion is illegally bet in Texas annually. The sports betting market was estimated to be nearly $77 billion in 2021. Data Bridge Market Research thinks that figure could soar globally to $297 billion by 2030.

Texans also spend roughly $5 billion a year in adjacent states and Las Vegas, according to another estimate.

Texans spend billions of dollars every year in casinos in nearby states, said Ray Perryman, CEO of the Perryman Group, a Waco economic research firm. There are gaming facilities very close to the border in Louisiana, Oklahoma, and New Mexico.

Next door in Lousiana, Baltimore-based Cordish Companies, the mastermind behind Arlingtons Texas Live! entertainment center, is planning a $250 million casino resort thats expected to open in 2025.

Cuban has previously said he believes Texas isnt a hot tourist draw because it lacks real destinations to save up for. Hes said resort gaming could change that, and hes not alone in that belief.

I imagine there could be a lot of gambling tourism, said Raji Srinivasan, a marketing professor at the University of Texas at Austin. Whether its Dallas or San Antonio, cities could really capitalize on this. Las Vegas might even see a cutback in a sizable portion of its tourism because people are willing to travel from Texas to gamble in Vegas.

The Adelsons have actively lobbied state legislators for years. The familys newfound ties to the Mavs could be the tipping point for lawmakers, Feldman said.

Theyve been looking at Texas for a long time, he said. People in the community might be hesitant about building a new arena, but they can put a new proposal on the table that might include a casino resort. That wasnt a realistic vision before but maybe that could change now.

Sheldon Adelsons influence on the Republican Party as a longtime donor may also sweeten the pot for decision-makers in Austin, Srinivasan said.

Their family has been a big contributor to the GOP. So they have good inroads with the party already, she said. I think theyll be able to advocate in a way that Mark Cuban hasnt been able to historically. I think that has to be one of the interests behind making this play for the Adelson family. If anyone can pull this off, its going to be them.

Brandt said the Adelson familys wealth Miriam Adelsons net worth is estimated at $33 billion gives them the financial resources to push for gambling expansion.

A family like theirs having a majority stake in one of the premier franchises in Texas is a net positive for the efforts of legalized gambling in the state, he said.

Given opposition from Lt. Gov. Dan Patrick and others to legalization efforts, the fight in Austin is easier said than done, Perryman said.

It is difficult to say how the acquisition of a major sports franchise by a prominent casino operator will impact the efforts to enact legislation authorizing gaming, he said. Historically, efforts have come the closest to passage at times when the state was facing revenue shortfalls, which is not the case at present.

Despite his doubts, Perryman said hes not ruling out legalization as the state looks for solutions for a number of issues.

Texas is a rapidly expanding state that faces long-term challenges in providing necessary educational opportunities at all levels, infrastructure, water resources, broadband, health care, workforce development, and many other requirements, he said, The revenues that could be obtained from permitting gaming would be very beneficial in these efforts.

If Texas were to legalize casino gambling and sports betting, it could set off a scramble by Sands and other companies to cash in, Srinivasan said.

The Adelsons have the advantage here if it gets legalized, but once its legalized, youre gonna have a whole bunch of other companies coming in as well, she said. Within two to three years of legislation being passed, Id expect to see malls dying from low foot traffic be repurposed.

With DFW International Airport being the second-busiest airport in the United States, it makes it easier for casino operators to attract out-of-town visitors, Feldman said.

Dont dismiss Dallas now, even internationally. Its a very important city, he said. Las Vegas Sands already has a spectacular proposal in New York where the Islanders used to play at a site thats no longer being used. This is the evolution of those kinds of interests in Texas.

But competing with gambling meccas like Las Vegas is a long time away, Brandt said.

Vegas has been the standard. Im sure there will be a honeymoon period like there was in New Jersey, he said. But Vegas has other entertainment options that are ancillary to the gambling.

Feldman said its not so much about challenging Vegas, but more about enhancing Dallas international profile.

People from Latin America, Canada, even Asia, might add Dallas to their list of places to visit, he said. The Mavericks already dont have a hard time selling a ticket, but it could be even better. People are going to say, Lets catch a Mavs game and we can stay right where the stadium is for the weekend.

Other local teams like the Stars, Cowboys and Rangers also could cash in on an increased international presence, he said.

Those [arenas and casinos] are proving to be enormously powerful economic generators. Its the reason that the Oakland Athletics are trying to move to Las Vegas, he said Theyre willing to tear down the existing casino in order to make way for a new major sports arena on top of other development, including a new resort hotel. So this model is proving enormously powerful.

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How Mark Cubans Mavs sale could push gambling expansion forward in Texas - The Dallas Morning News