Dallas Mavericks owner Mark Cuban is seeking to sell a significant stake in the team to the family of Miriam Adelson, who owns the Las Vegas Sands Corp., for $3.5 billion. The Las Vegas Sands said in an SEC filing it was selling $2 billion worth of stock and intends to use the money to "fund the purchase of a majority interest in a professional sports franchise."
According to multiple reports, Cuban would retain control of basketball operations if the deal is approved by the NBA despite having a smaller ownership stake in the team. The longtime NBA owner purchased the team 23 years ago and has been among the most hands-on owners in sports during his tenure.
NBA writer Mark Stein, who broke the news of the deal, notes that Cuban has been seeking to partner with the Las Vegas Sands since December of last year. Cuban told The Dallas Morning News that his goal is to "build a new arena, it’ll be in the middle of a resort and casino. That’s the mission.” The lease on the American Airlines Center expires in 2031.
Cuban has long been interested in sports betting's relationship with the league and the opportunities for the league and its teams to partner with operators. Legislation in other states like Colorado has required sportsbooks to partner with a casino for operation. This move signals an intent to get ahead of such stipulations if that's how Texas' long-awaited legalization of sports betting takes shape.
Online sports betting in Texas hasn't been legalized yet, but there have been multiple bills presented to the state legislature, including two in April. The addition of the Adelsons and the Las Vegas Sands Corp. will likely bring more weight to the Texas Sports Betting Alliance, a coalition of Texas sports teams advocating for sports betting to become legal in the Lone Star State. The Sands Corp. has been active in Texas for the past two years and launched an advertising campaign in 2021 advocating for commercial casinos in Texas, where three tribal casinos currently operate.
The question, naturally, is whether the league and the state of Texas would be comfortable with the Sands operating a sportsbook while also owning a majority share in the Mavericks. The unique nature of Cuban's sale of a majority but not controlling interest appears to be the approach to avoid such conflicts of interest.
Other teams have partnered directly with sportsbooks in arenas, like the Washington Wizards and Caesars. Houston Rockets owner Tillman Fertitta owns Golden Nugget Casinos, which operates in nearby Lake Charles, Louisiana. While Cuban's move would be a step forward in the partnership between operators and sports teams, the deal itself is structured to avoid predictable hiccups. It also clearly signals belief that legalization of sports betting in Texas is closer to becoming a reality.
The best way to read this move is to understand Cuban's place in NBA ownership. Cuban has always been ahead of the curve when it comes to innovation as an owner. His front-facing position as a key decision maker in the Mavericks' basketball operations has clouded how he's kept himself at the forefront of revenue opportunities for teams.
There's an ongoing divide among the NBA's Board of Governors, with an older guard that prefers more conservative approaches to spending running up against newer owners like Steve Ballmer and Vivek Ranadive who are seeking more innovation in ways for their teams to connect with, and profit from, fan interest. Cuban's been at the forefront of that since his entrance to the league in the early 2000s.
In the end, Cuban nets several billion, maintains control of running the Mavericks, positions the team to benefit both immediately and long term from the potential legalization of sports betting in Texas, and solves any long-term issues with arena funding by developing a new arena as part of a casino development.
