Hedge Fund Billionaires Take Stake in Caesars Online Gambling: Take on Adelson
Three billionaires against one: George Soros, John Paulson and Leon Cooperman have reportedly taken a stake in Caesars Acquisition Co, the online gambling spinoff of the Vegas giant. ((Image credit: Steve Brodner)
They are joined by fellow hedge fund managers Leon Black, David Bonderman and Marc Rowan. They will not be joined by fellow billionaire and Las Vegas Sands casino magnate Sheldon Adelson. Not only has Adelson opposed the expansion of gambling via the Internet in the States, he has declared outright war on the by hiring lobbyists. Adelson told Forbes he will “spend whatever it takes to stop online gambling”.
This is reminiscent of David and Goliath only few in the sector will be rooting for David under the current scenario.
Adleson does have some powerful weapons underneath his sleeve. He just happens to be one of the GOP’s biggest political donors. That gives Adelson sway with individual state attorneys, including those in states such as California and Florida.
From Nathan Vardi of Forbes.com:
His advocacy group–the Coalition to Stop Internet Gambling–is already up and running, and is working to get state attorneys general to sign a petition against online gambling. He’s hired former New York governor George Pataki, together with former Arkansas senator Blanche Lincoln and former Denver mayor Wellington Webb to lead the lobbying effort. “There is no reason to put a casino on everybody’s kitchen table, in the bed of every young person, whether they are underage or of age, or on mobile phones,” says Adelson. “I don’t want people to get addicted.”
To date, only New Jersey, Nevada and Delaware have legalized Web gambling.
- Gilbert Horowitz, Gambling911.com
