Summer 2014 The Social Contract

Sheldon Adelson’s Spider Web Where special interests intersect with immigration

By Peter Gemma

heldon Adelson is the 10th richest person in the and the United States Holocaust Memorial Museum. world — some say the eighth, but why quibble Perusing the Internet finds several more recent invest- Sabout a few billion dollars. Undoubtedly, he’s ments: $180 million for a youth exchange program, among the one percent of the one percent of Ameri- $67 million to a medical research center, $50 million ca’s political elites. The Center for Responsive Politics to expand an education campus, and a $16 million gift reports that during the 2012 elections, Adelson gave given towards Israel’s attempt to land a spacecraft on $20 million to Winning Our Future, the super PAC that the moon. promoted Newt Gingrich’s presidential bid, then poured When it comes to cornering and protecting the $30 million into the Restore Our Future, one of the gambling market, Adelson has no peer: he made more super PACs supporting former Massachusetts Governor money in the last three years than any other American. Mitt Romney. He also underwrote GOP operative Karl His Las Vegas Sands Corporation is the largest casino Rove’s political operation to the tune of $23 million. All company in the world, with annual revenues of more told, Adelson and his wife invested $100 million in the than $11 billion — it’s been estimated that his world- 2012 campaign sweepstakes, more money for one elec- wide gaming interests earn him $1 million an hour. tion than anyone else in American history.1 To fight off new attempts to open gambling to James Rainey of the Los Angeles Times writes, Internet usage, Adelson has just sketched out a compre- “Casino mogul and Republican mega-donor Sheldon hesive campaign utilizing everything from slick media Adelson is pro-choice on abortion, in favor of eventual ads to high-priced lobbyists. We’ll soon be hearing a citizenship for undocumented immigrants, supportive lot about how Web-based gambling lures children into of ‘socialized’ healthcare — that makes him sound like a dark world, empowers criminal activity, and will pro- America’s most committed liberal.”2 He really isn’t, duce little revenue for the states. Adelson doesn’t like to however. lose. He describes himself to professional competitors Sheldon Adelson is simply a man of special inter- and political challengers this way: “I didn’t go to busi- ests. Very special interests. First and foremost there is ness school. The name of my game is to eat the other his devotion to Israel. No one has given as much money guy’s lunch.” or lent as much political capital to Israel. That cause is Sheldon Adelson approaches the immigration followed by issues mainly impacting his business, such “reform” issue with the same aggressiveness. He says as regulations dealing with gaming casinos and immi- that, “As a Republican, it’s my view that efforts to com- gration “reform”— ensuring cheap labor for his Las plete immigration reform should be led by our party,” Vegas properties. and he dismisses those who have concerns about the It’s hard to total up his pro-Israel philanthropic lar- invasion of illegal aliens as, “on the outer fringes.”3 gesse: in 2007, he established the Adelson Family Char- Apparently he believes the Heritage Foundation, itable Trust, which donated $200 million to Jewish and a moderate GOP-leaning think tank, is on the periph- Israeli causes including Tel Aviv’s Yad Vashem Museum ery. The research organization published a study on the impact of amnesty on the American economy, which found that: The typical unlawful immigrant is 34 years Peter Gemma has been published in a variety of ven- old. After amnesty, this individual will receive ues including USA Today (where more than 100 of his government benefits, on average, for 50 years commentaries have appeared), Military History, the … the average adult unlawful immigrant DailyCaller.com, and the Washington Examiner. He would receive $592,000 more in government writes regularly on defense and foreign policy issues benefits over the course of his remaining life- for the Unz Review.com. time than he would pay in taxes. The former

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unlawful immigrants together would receive an IRS-designated social welfare nonprofit — known as $9.4 trillion in government benefits and ser- a 501(c)(4) — which “educates the public” on its special vices and pay $3.1 trillion in taxes. They interests. Brooks declared, “We don’t make our donors’ would generate a lifetime fiscal deficit (total names available. We can take corporate money, personal benefits minus total taxes) of $6.3 trillion.4 money, cash, shekels, whatever you got.” Brooks also However, Adelson claims his activities on behalf assures backers, “Everything we do is strictly within the of illegal aliens are driven by family sentimentality as legal guidelines.”8 (Adelson once joked that he couldn’t he invokes the Emma Lazarus poem: “generations of give a $50 million contribution to the RJC because they immigrants, including my parents, to the United States didn’t have change for $1 billion.) [read] as they pass the Statue of Liberty … ‘Give me Adelson’s Republican Jewish Coalition is a cabal your tired, your poor, your huddled masses yearning to working to re-shape the GOP into a more “moderate” breathe free.’”5 political party, with a soft center on issues dealing with In a December 2012 interview with The Wall Street immigration. William Daroff, the Washington director of Journal, Adelson stated: “We’ve got to find a way, find the Jewish Federations of North America and a former a route for those people to get legal citizenship.”6 And to deputy to Brooks at the Republican Jewish Coalition, find a way, Adelson has at his disposal deep pockets and observes that Republican Jews want the party to be more a deeply entrenched political advocacy syndicate. moderate. “The conventional wisdom is that the election Sheldon Adelson chairs the Republican Jewish will result in the shift of the Republican Party to the cen- Coalition (RJC), an extraordinarily powerful special ter,” he says, “particularly on issues of immigration.”9 interest group. The RJC’s board of directors includes Former Nixon aide Fred Malek, a major GOP four former national finance chairs for the Republican donor and fundraiser for the party and an RJC board Party, private-equity executive Lewis Eisenberg, former member, claims, “Thoughtful people in the donor com- Republican Party National Chairman Ken Mehlman, munity fully recognize that our Republican Party is seen former U.S. Ambassadors Sam Fox and Mel Sembler, by many as intolerant, and that we will never again win and hedge fund founder Paul Singer. According to Polit- a national election unless we embrace policies more ico, “Republican mega-bundler Paul Singer has quietly appealing to the large, growing, and influential group of gotten involved in the fight for immigration reform, Hispanics in our country.”10 making a six-figure donation to a group [the George Although the identities of individuals and corpo- Soros-funded National Immigration Forum] involved in rations who donate to 501(c)(4) groups such as Adel- marshaling conservatives to support an overhaul of fed- son’s RJC are not known, the forms filed by nonprofits eral laws.”7 that give to the groups require them to list the grants to In 2012, Matt Brooks, the Republican Jewish governmental agencies. So here’s where connecting the Coalition’s executive director, pitched 100 members dots, or dollar signs, reveals how Washington’s political for coalition-funded ads opposing President Barack power structure works. Obama’s policies. He told the faithful that their contribu- Former Senator Norm Coleman (R-MN) is a con- tions would not be publicly disclosed because the RJC is sultant and strategic adviser for the Republican Jewish

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Coalition. Breitbart News reports11 that the American annual convention of the most powerful lobby on Capi- Action Network (AAN), a group headed by Coleman, tol Hill,16 the American Israel Public Affairs Committee, used faulty economic data, initially published by the he declared that Israel is “our best friend in the world.” White House, to argue a Senate immigration “reform” Adelson is now sizing up GOP potential presiden- bill actually creates jobs.12 In 2010, the Republican Jew- tial contenders for the 2016 election cycle. Despite Flor- ish Coalition gave $4 million to AAN, which, coinci- ida Senator Marco Rubio’s flip-flopping on the immi- dentally, shares office space in Washington, D.C. with gration issue,17 Adelson thinks he “is a very impressive Crossroads GPS, political hit man Karl Rove’s outfit. guy. I’ve talked to him privately many times, and he’s If you are still following the money trail, we’ve extremely knowledgeable.”18 now come to Karl Rove, the political grandmeister Last year, Adelson presented the annual “Adel- of Republicans. Remember, Sheldon Adelson gave son Defender of Israel” award to Mike Huckabee at a a whopping $23 million to Rove’s Crossroads GPS Zionist Organization of America dinner. He said the for- fund to underwrite GOP campaigns in 2012 — many mer Arkansas Governor was “a great politician, a great of which weren’t necessarily the traditional Republican person, a great American, and a great Zionist.” Pun- candidates. In fact, Matt Kibbe, President of Freedom- dit Michelle Malkin has a different take on Huckabee: Works, a Tea Party-linked nonprofit that spent more than “He’s an open borders drag queen, and he’s piling on $60 million in the 2012 cycle, says there “is a little bit the make-up and jewels again to disguise his pro-illegal like gang warfare right now” between the establishment immigration record in time for the [2016] South Caro- pro-amnesty Republicans and the grassroots Tea Party lina [presidential] primary.” movement. A sore spot in the push-and-pull contest is Shawn Steel, a Republican National Committee the issue of immigration. One news report stated: member, calls Adelson “a very rational guy” who has Karl Rove has founded a new group designed learned his lesson from 2012. He believes the Adelson not to beat Democrats, but to destroy a wing strategy for 2016 is, “to have the guy or the gal who’s of his own coalition: the Tea Party. [It will] most likely to put a coalition together to win in Novem- pump big money into local congressional pri- ber.” Steel explains, “The candidate will have to have maries and prevent Tea Party-endorsed can- a strong résumé — no sudden lightning-new guy — didates from scoring Senate nominations.13 will have to build a formidable fundraising apparatus, and really be emotionally tethered to bringing in mid- Last year, Rove’s group tested a campaign ad in sup- dle-class Latinos, Asian Pacifics, Jews, and blacks like port of comprehensive immigration “reform” to the tune never before.”19 of $100,000. “It is important that Republicans avoid call- Ken Mehlman, former Republican National Chair- ing a pathway to citizenship ‘amnesty,’” Rove warned in man and a board member of Sheldon Adelson’s Repub- a Wall Street Journal editorial, maintaining that, “immi- lican Jewish Coalition, co-authored a Wall Street Jour- gration reform is now a gateway issue: many Hispanics nal editorial with former Florida Governor Jeb Bush, a won’t be open to Republicans until it is resolved.”14 likely Republican presidential candidate (and who was Sheldon Adelson has some favorite politicians, and recently fêted in Las Vegas by Adelson). The Bush- the list begins, understandably, with Senator Lindsey Mehlman article concluded that, “Both of us have spent Graham (R-SC). Adelson and his wife Miriam each gave much of our professional lives working to help build the $7,800 contributions to Graham’s campaign committee Republican Party. We believe Hispanic Americans are (both were refunded $2,600 of that, as the total exceeded natural Republicans.”20 federal limits). Others disagree. Dr. Stephen Steinlight of the Cen- Graham is fully on board with the open borders ter for Immigration Studies asserts, “Republicans seem lobby: incapable of learning immigration isn’t decisive. His- If we don’t pass immigration reform, if we panic hostility to the GOP reflects an unbridgeable divide don’t get it off the table in a reasonable, prac- over economic policy and the role of government. His- tical way, it doesn’t matter who you run in panics are anti-capitalist and want a bigger federal gov- 2016. I want to get re-attached to the His- ernment dispensing larger entitlement. These views are panic community, to sell conservatism, pass anathema to Republicans, and compromise is impossi- comprehensive immigration reform and grow ble.” Steinlight also believes, “Amnesty will have brutal this party. The Hispanic community is close consequences for the most vulnerable Americans. Cheap to our values but we have driven them away immigrant labor is a bargain only for employers.”21 Adel- 15 over this issue. son’s Las Vegas operations thrive on cheap labor. Coincidentally Graham now leads Senate action Columnist Ann Coulter has cited Adelson as “an for a ban on Internet gambling. And one other fortuitous especially telling example of the self-interest business- link with Adelson: when Senator Graham addressed the men on immigration.” She writes:

8 Summer 2014 The Social Contract

His newspaper, Israel Today, has trumpeted 8. www.propublica.org/article/how-nonprofits-spend- the success of the 15-foot razor-wire fence millions-on-elections-and-call-it-public-welfare along Israel’s 140-mile border with Egypt, 9. www.jta.org/2012/11/12/news-opinion/politics/on- triumphantly noting last August that, for the the-morning-after-jewish-republicans-advise-the-party first time, ‘no infiltrations were recorded from 10. www.washingtonpost.com/blogs/the-fix/ the Egyptian border, compared to 193 from wp/2013/06/28/know-who-wants-republicans-to-pass- the same month last year.’ Adelson himself immigration-reform-major-republican-donors/ had suggested just such a policy to the Los Angeles Times last year, saying he wanted 11. www.breitbart.com/Big-Government/2013/08/21/ to ‘Put a big fence around our country.’ By Romney-s-top-2012-donor-teams-with-Soros-front- ‘our country,’ he, of course, meant Israel. In group-to-push-amnesty America, he wants illegal immigrants pour- 12. www.breitbart.com/Big-Government/2013/08/20/ ing across the border to provide him with an Exclusive-Obamanomics-101-GOP-establishment- endless supply of cheap labor.22 uses-Obama-s-Left-s-data-to-argue-amnesty-creates- Sheldon Adelson is a mean political card shark. jobs Last December, he told the Wall Street Journal he was 13. www.policymic.com/articles/24766/karl-rove- ready to double his 2012 bet of $100 million on presi- takes-on-the-tea-party-to-save-the-gop-from-itself dential candidates. “I’ll spend that much and more. Let’s 14. www.rove.com/articles/477 cut any ambiguity.”23 15. www.businessinsider.com/lindsey-graham- Thankfully, Adelson’s luck runs out (think Presi- immigration-reform-70-votes-republicans-2013-6 dent Mitt Romney or President Newt Gingrich). More http://www.realclearpolitics.com/video/2013/06/23/ recently veteran political pundit Phyllis Schlafly notes, lindsey_graham_pass_immigration_reform_for_good_ “The stunning defeat of the heir apparent for leader- of_the_republican_party.html ship of the Republican Party, Eric Cantor, continues to reverberate throughout the political world. Completely 16. President Jimmy Carter has noted, “This reluctance caught off-guard, the liberal media are scrambling to try to criticize any policies of the Israeli government to spin the story as something other than what it obvi- is because of the extraordinary lobbying efforts of ously is. The message of the voters to Cantor and the the American-Israel Political Action Committee. It entire nation was this: no amnesty.”24 would be almost political suicide for members of Sheldon Adelson is in for the whole game, how- Congress to espouse a balanced position between ever. He told the Wall Street Journal: “I don’t cry when I Israel and Palestine, to suggest that Israel comply with lose, there’s always a new hand coming up.” ■ international law, or to speak in defense of justice or human rights for Palestinians.” Endnotes 17. www.thedailybeast.com/articles/2013/07/08/marco- 1. www.propublica.org/article/how-much-did-sheldon- rubio-spurned-by-original-tea-party-supporters-over- adelson-really-spend-on-campaign-2012 immigration.html 2. http://articles.latimes.com/2012/dec/06/news/ 18. www.nationaljournal.com/daily/billionaire-sheldon- la-pn-sheldon-adelson-liberal-stances-abortion- adelson-assesses-the-2016-field-20130911 immigration-20121205 19. www.alipac.us/f9/billionaire-mogul-sheldon- 3. www.politico.com/magazine/story/2014/06/lets-deal- adelson-looks-mainstream-republican-who-can-win- with-reality-and-pass-immigration-reform-108065. 2016-a-299792/ html#ixzz35B9wGzAd 20. http://online.wsj.com/news/articles/ 4. www.heritage.org/research/reports/2013/05/the- SB118057904673319633 fiscal-cost-of-unlawful-immigrants-and-amnesty-to- 21. www.commdiginews.com/politics-2/hispanics- the-us-taxpayer wont-vote-gop-even-if-conservatives-cave-on-amnesty- 5. www.politico.com/magazine/story/2014/06/lets-deal- 16420/#gyevCfuDm1ovlhDF.99 with-reality-and-pass-immigration-reform-108065. 22. www.wnd.com/2014/04/competition-for-thee-but- html#ixzz35B9wGzAd not-for-me/ 6. http://articles.latimes.com/2012/dec/06/news/ 23. http://politicalwire.com/archives/2012/12/05/ la-pn-sheldon-adelson-liberal-stances-abortion- adelson_pledges_to_double-down_on_donations.html immigration-20121205 24. http://news.investors.com/ibd-editorials-on-the- 7. www.politico.com/story/2013/04/gop-donor-paul- right/061714-705055-gop-needs-to-hear-what-voters- singer-immigration-reform-90726.html said-to-cantor.htm#ixzz35BhpLekz

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