Adelson's Purchase of Vegas Newspaper raises Suspicion

Casino magnate Sheldon Adelson recently purchased the Las Vegas Review-Journal (LVRJ) for $140 million. And this sale has now raised suspicion among Nevada gaming regulators.

According to Gaming Control Board Chairman A.G. Burnett, there’s nothing illegal about a casino owner buying a newspaper in the same state. However, Burnett also says that gaming regulators have the right to investigate and monitor such a purchase.

This isn’t the first time that Nevada’s gaming authorities have looked at outside investments by casino owners. They previously intervened when gaming license holders tried to invest in the state’s medical marijuana business, citing that the owners couldn’t do so because marijuana remains illegal under federal law.

The sale of LVRJ immediately attracted suspicion because the buyer was listed as News + Media LLC, a corporation in Delaware with no officers or corporate board. The LVRJ reported themselves that Adelson’s son-in-law, Patrick Dumont, was actually behind the purchase.

This invited lots of speculation as to why Adelson wants to own the newspaper. The predominate speculation is that the Las Vegas Sands owner wants to use the paper to influence public policy on his business transactions. However, there’s nothing wrong with him owning the LVRJ for the moment.

“We are watching all of these developments very closely,” said Burnett. “Of course, it’s incumbent upon all gaming license holders to avoid actions that go against the morals, good order and general welfare of the people of the state of Nevada, and to avoid doing anything that reflects or tends to reflect discredit on the state. I’m sure Mr. Adelson and his team are doing their utmost to do that.”

Since the sale, Adelson has offered some contradictory statements on his ownership of the paper. And according to him, he doesn’t really have much do to with the LVRJ.

“I don’t have anything to do with it,” Adelson explained. “My money that the children have with which to buy the newspaper is their inheritance. I don’t want to spend money on a newspaper.”

Whether or not this is true remains to be seen. And if there is anything morally corrupt about Adelson purchasing the newspaper, it’s likely to be discovered given how closely Nevada gaming regulators are monitoring the situation.