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GAMBLING

Adelson ties said to ease Macao bid

He won support for casino after assuring China an anti-Olympic motion in the House would be delayed.

June 16, 2008|Michael A. Hiltzik and Ashley Powers | Times Staff Writers

LAS VEGAS — Billionaire Sheldon Adelson landed Chinese government support in his quest for a lucrative gaming franchise in Macao in 2001 after relaying assurances from a Republican Party boss that a congressional measure opposing Beijing's bid for the 2008 Olympics would "never see the light of day," according to court testimony in a civil suit here.

The intelligence came out of a phone call between Adelson and then-U.S. Rep. and Majority Whip Tom DeLay (R-Texas). Adelson, owner of the Venetian hotel and casino and a longtime GOP contributor, was then in Beijing, conferring with government officials about their plans to expand the gaming and entertainment sector in Macao. The former Portuguese colony had been turned over to China in 1999.

Grateful Chinese authorities came to Adelson's rescue at least twice thereafter when it appeared his bid was in jeopardy, according to testimony.

The role of that phone call in helping Adelson land a lucrative Macao gaming concession was disclosed in a civil suit brought by a Hong Kong middleman, Richard Suen, who took credit for introducing Adelson and his investment partners to key Chinese officials. Last month, a Las Vegas jury awarded Suen $43.8 million for what it concluded was his role in Adelson's successful campaign for the Macao concession.

Suen said he had set up a series of meetings between Adelson and high-level Chinese officials in July 2001, only to get stiffed by Las Vegas Sands Inc., corporate owner of the Sands Expo and Convention Center and the Venetian on the Las Vegas Strip. Suen had sued for $100 million.

"We gave Mr. Adelson the opportunity to show his political power," Suen testified, adding, "We got them the license."

In its verdict, handed up late last month after a six-week trial, the jury agreed that Suen played an essential, if somewhat nebulous, role in obtaining Sands' gaming license in Macao. Lawyers for the Las Vegas mogul vow to appeal.

Adelson, to be sure, can afford the financial toll. The 74-year-old founder and chairman of Las Vegas Sands ranked third on this year's Forbes 400 list of richest Americans with a net worth, the magazine estimated, at $28 billion.

The son of a Boston cab driver made his fortune as owner of the fabled high-tech convention Comdex, selling it to Japanese investors for more than $800 million in 1995. He pioneered development of Las Vegas as a convention town, refashioning the Sands as a convention center and eventually converting it into the Venetian.

He also came to be a leading financial backer of the Republican Party. Public records show that Adelson, his wife Miriam and his corporation had contributed a combined $695,000 to Republican candidates and committees over the 12-year span before he pulled DeLay out of a Fourth of July barbecue in 2001 with a cellphone call from Beijing.

A few facts related to the still-murky affair are undisputed. One is that the Sands' 20-year concession to operate casinos in Macao is a gold mine. The company's two Macao resorts -- the Sands Macao, opened in 2004, and the Venetian Macao, opened last year -- have generated nearly $4 billion in casino revenue to date. Sands is planning to spend $12 billion to open six more Macao resorts.

Another is that a 2001 congressional resolution opposing the Beijing Olympic bid vanished from the House of Representatives agenda days before the International Olympic Committee was scheduled to vote on the site of the 2008 Summer Games. That happened shortly after Adelson called DeLay to inquire about the measure.

Finally, it is clear that Las Vegas Sands took credit with the Chinese leadership for killing the resolution -- instructing its Washington lobbyists to "suggest that we were involved in the process," a high-ranking Sands executive said in court.

Suen's Los Angeles-based attorney, John O'Malley of Fulbright & Jaworski, contends that the move, or at least the Chinese perception, provided Adelson and Sands with a nearly bottomless reserve of "guanxi," a sort of personal networking built around an exchange of favors.

The keystone of the relationship was a trip to Beijing that Suen arranged for Adelson and his top lieutenant, Sands President William P. Weidner, in July 2001.

At the time, Macao's reputation was that of "a seedy backwater of a gambling den," Adelson recalled from the stand. "Prostitution infested, crime infested . . . everything wrong that would never happen in a state like Nevada, ever."

The Chinese leadership was pondering how to clean up its new possession. During an audience with Vice Premier Qian Qichen, Adelson and Weidner learned that the regime hoped to develop Macao into a major Southeast Asian entertainment and business destination. Officials were even willing to set aside their traditional antipathy to gambling to achieve that goal.

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