Within 24 hours of the Georgia Lottery making public its intent to launch a probe into Daily Fantasy Sports powerhouses DraftKings and FanDuel, news broke that casino magnate and GOP mega donor Sheldon Adelson is now looking to open a casino in the Peach State.
Daily Fantasy Sports fans who follow our sister site Gambling911.com are well aware of Adelson’s intentions at shuttering online gambling in the United States. But could he now have his sight set on new threats like DraftKings and FanDuel?
The Wall Street Journal is reporting that the casino kingpin is considering a $2 billion casino for downtown Atlanta. Georgia does not currently have any land-based casinos.
That paper is reporting:
Adelson has a wide web of Georgia contacts at the ready that he could use to press his case. He dropped $20 million on (Newt) Gingrich, a former Georgia congressman, during his presidential bid and he is chairman of the board of the Republican Jewish Coalition, which also includes Home Depot co-founder Bernie Marcus. And his former top deputy, Mike Leven, is now the chief executive of the Georgia Aquarium.
“He’s a guy with a very good heart,” Leven said. “He’s controversial for sure. He’s dynamic and aggressive. But he makes enormous contributions to every community he’s been in. And that’s what people should be looking at.”
Just 24 hours before this news broke, the Georgia State lottery had announced its probe into the Daily Fantasy Sports sector amidst allegations of possible insider trading at DraftKings. That company and its legal counsel deny any wrongdoing.
The Georgia Lottery’s probe actually began September 23, prior to the current controversy involving DraftKings, with Georgia Lottery attorney Joseph Kim sending off a letter to both DraftKings and FanDuel suggesting that they appear to violate Georgia law.
Kim says gaming is generally banned by Georgia’s constitution, except for state lottery-run games.
Representatives for FanDuel and DraftKings didn’t immediately respond to emails requesting comment.
Kim told The Associated Press neither company responded by the Friday, Oct. 16 deadline given in his letter. He says lottery officials are considering their next step.
And Georgia is not alone. Attorney Generals in New York, Massachusetts and Florida have each launched probes into the two DFS firms. The Nevada Gaming Commission ordered both to cease operations in that state until they submit to the proper licensing process.
Adelson’s influence in Georgia when it comes to the casino prospects and any impact on perceived competition (i.e. the Daily Fantasy Sports operators) remains unclear.
The billionaire businessman does operate the largest casino in Pennsylvania, a state that is currently mulling over legislation that would allow DFS sites to operate through a licensing process.
The Keystone State is also considering legalizing online gambling, something Adelson seems to have little say in.
– Vito Conti, DFS911.com