Billionaire's purchase of paper seen as a power play

Las Vegas

TWO days after Sheldon Adelson's lawyers lost in their attempts to have a judge removed from a contentious lawsuit that threatens his gambling empire, a call went out to the publisher of this city's most prominent newspaper.

Almost immediately, journalists were summoned to a meeting and told they must monitor the courtroom actions of the judge and two others in the city. When the journalists protested, they were told that there was no choice in the matter. It is unclear whether Mr Adelson, who was then in talks to buy the newspaper, The Las Vegas Review-Journal, or his associates were behind the directive or even knew about it. But it was an ominous coincidence for many in the city who worry what will become of the paper now that it is owned by Mr Adelson, a billionaire casino magnate and prominent Republican donor with a history of aggressively pursuing his interests.

Suspicion about his motives for paying a lavish US$140 million for the newspaper last month are based on his reputation as a Las Vegas figure comfortable with using his money in support of his numerous business and political interests, said more than a dozen of the current and former Review-Journal staffers and local civic figures who have worked closely with him.

"I find it hard to believe that he would have so dramatically overpaid for that paper without having some agenda in mind," said Jon Ralston, a columnist and the host of Ralston Live, a political television show in Las Vegas.

For five years, Mr Adelson and his lawyers have frequently clashed with Elizabeth Gonzalez, the judge overseeing a lawsuit against his gambling company, which involves allegations by a former executive of bribes to officials in Macau, where it operates a casino, and the possible presence there of organised crime.

The case, which is being heard in Clark County District Court, could have significant repercussions for Mr Adelson's future in the gambling industry, and his high-priced legal team has fought it vigorously.

On Nov 4, with Mr Adelson in talks to buy The Review-Journal, the Nevada Supreme Court rejected a request from Las Vegas Sands Corp to have Ms Gonzalez removed from overseeing the lawsuit. The company said that rulings and comments made by Ms Gonzalez in court reflected a bias against Mr Adelson and Sands.

Ms Gonzalez has twice sanctioned Mr Adelson's team, finding that they had failed to disclose information and ignored one of her orders. Once, while Mr Adelson was giving testimony, she admonished him for disagreeing with her when she instructed that he answer a question, saying, "You don't get to argue with me."

The case that Ms Gonzalez is overseeing started in 2010 when the former chief executive of Sands' operation in Macau, Steven Jacobs, filed a wrongful termination lawsuit, claiming that he was fired for refusing to carry out orders from Mr Adelson that he says he believed were illegal, including payments to local officials that might violate the Foreign Corrupt Practices Act. Mr Adelson and Las Vegas Sands have insisted that they did nothing wrong and that Mr Jacobs was fired for cause and is seeking money that he does not deserve.

If the allegations raised in the lawsuit prove true, they could have significant consequences for Mr Adelson and Sands because Nevada law bars casino owners from, among other things, associating with members of organised crime. Mr Adelson and his company have rejected the claims, but the lawsuit prompted the Securities and Exchange Commission (SEC) and the Justice Department to open investigations into Las Vegas Sands.

In a recent filing with the SEC, Sands said that it was cooperating with federal investigations but could not predict their outcomes or potential impact. Mr Adelson has spoken of his interest in buying The Review-Journal, which has a circulation of just under 200,000 and is an influential voice among civic leaders, for several years, according to those familiar with his relationship with the paper. There is no shortage of issues, including the lawsuit, that the journalists here worry they will face pressure to cover differently.

The Review-Journal has a libertarian bent, and its editorial page agrees with Mr Adelson on some issues. But it has also been robust in its news coverage, including articles on the lawsuit being overseen by Ms Gonzalez.

The paper's publisher, Jason Taylor, now requires reporters and editors to get written permission before any article regarding The Review-Journal or Mr Adelson's purchase of it is published.

It is not clear whether Mr Taylor has been instructed to do so, and he declined to comment for this story. Nor is it clear, staff said, whether Mr Adelson and his family have been directly orchestrating matters since the sale. It could be the case, they said, that the paper's management or Mr Adelson's aides have been acting pre-emptively to satisfy what they think Mr Adelson, known to be a demanding and exacting man, might want.

He rose to prominence in the city as the combative, litigious owner of the Sands Casino, and a political kingmaker. Forbes has estimated his net worth at about US$25 billion, and he travels with an entourage of bodyguards. He is a lavish backer of both local and national politicians, and puts his considerable resources towards local and national issues about which he feels strongly.

"When you have all the marbles, you can make the calls," said Carolyn Goodman, the mayor of Las Vegas. "And he has all the marbles." NYT