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LAS VEGAS—Casino mogul Sheldon Adelson, known on the national political stage as a major Republican-party donor, has a more local matter on his mind in his adopted hometown: convincing the state legislature to allocate tax dollars for the $1.9 billion stadium he wants to build and operate as a new home for the National Football League's Raiders.

The proposal has a chance of passing the Republican-led legislature this week, as the governor has called a special legislative session starting Monday to consider a plan by Mr. Adelson, who owns Las Vegas Sands Corp.

The effort to bring the second major-league professional sports team to Nevada so far has included rallies featuring Raiders fans and a cameo appearance by soccer star David Beckham at a meeting of the Southern Nevada Tourism Committee last April.

"Thank you all for the offer you are bringing to us," Las Vegas Mayor Carolyn Goodman, a Democrat, said to Raiders owner Mark Davis and others representing Mr. Adelson. "Bravo."

"I didn't know we were so popular and I don't think it's us," said Tourism Committee board member Bill Hornbuckle, president of Sands rival MGM Resorts International.

The warm welcome is unusual for Mr. Adelson, who has long been at odds with many powerful political forces in Nevada., despite his deep pockets and influence on the national stage.

Yet, the domed-stadium proposal remains controversial and unlikely to sail through the legislature, political observers say. Critics, which include the main casino-workers union, say, among other things, there are other priorities that new public funding could be used for instead of a billionaire's project.

The stadium is part of what may be the biggest-ever push by Nevada's wealthiest resident to shape politics, business and community in the state.

Mr. Adelson bought the Las Vegas Review-Journal, the largest newspaper in Nevada, last year, and is funding a ballot initiative to break up the main energy monopoly held by NV Energy.

Many of the state's most important interests—including rival casino owners, construction labor unions and the state university system—are backing Mr. Adelson's stadium plan.

"This is definitely a maturation of his political instincts," said Tick Segerblom, a Democratic state senator who opposes the stadium plan. "He has been very sophisticated about it."

The proposal being considered by the legislature would increase the hotel-room tax by 0.88 percentage point in the city's tourism corridor, sending $750 million to pay off public bonds that would fund part of the stadium construction. Mr. Adelson personally would contribute $650 million to serve as developer and operator. (Mr. Adelson's Sands Corp. wouldn't officially be involved in the project).

A public entity would own the stadium, but revenue from it would go to Mr. Adelson's development and operations group. The estimated annual return to Mr. Adelson, after expenses, would be about $20 million a year, according to Steven Hill, director of the Governor's Office of Economic Development who chaired a state-created tourism-infrastructure committee that has proposed the bill. But Andy Abboud, an Adelson political adviser who has led the stadium planning, said the amount is expected to be higher.

The Raiders would contribute about $500 million through season-ticket licensing fees and an NFL loan contribution. The financing would be dependent on a team moving to Las Vegas.

A spokesman for the NFL said three-quarters of the league's owners would need to approve such a move. A spokesman for the Raiders, currently of Oakland, Calif., didn't respond to requests for comment.

The team has taken out an option to buy a site for the stadium in Las Vegas, Mr. Hill said. "We are willing to invest in the project because it creates jobs and tax revenue."

Mr. Abboud said Mr. Adelson is expecting a low rate of return, but wants to be involved in the project because he believes it would benefit the community. "It makes us a major-league city," Mr. Abboud said. "He thinks a rising tide lifts all boats."

Arenas and stadiums traditionally have been difficult to finance and build in Las Vegas because professional sports teams have shied away from the legal sports betting allowed in the state.

But sports leagues are starting to soften their stance and the major Las Vegas casino companies increasingly have become interested in diversifying their revenue streams away from gambling and toward big events, nightclubs and restaurants. This year MGM opened the T-Mobile Arena, which will house a National Hockey League expansion team starting next year. It will be Las Vegas's first major professional sports team.

(END) Dow Jones Newswires

October 09, 2016 23:55 ET (03:55 GMT)

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