U.S. Diplomat Tilman Fertitta Buying Millions of Casino Stocks

Billionaire, casino mogul, and U.S. Ambassador to Italy and San Marino, Tilman Fertitta, is denying wrongdoing for investing hundreds of millions in casino companies.

The diplomat, who owns the NBA’s Houston Rockets, the Golden Nugget casino chain, and dozens of restaurants and hotels, bought at least $113 million of Caesars Entertainment stock since Nov., federal financial documents show, per NOTUS. The documents, which were submitted to the Office of Government Ethics, also showed that Fertitta bought $1-5 million worth of Penn National Gaming.

Fertitta’s exact casino stock purchases since trades are only required to be grouped into brackets. However, Feritta is clearly throwing his weight around on the market.

Fertitta questioned for gambling stock purchases

Feritta has been linked to Caesars in recent months. His Golden Nugget supposedly entered conversations with the gambling giant over an $18 billion takeover of the brand, which maintains hotels, casinos, restaurants, and sportsbooks across the globe.

“[Fertitta] has no day-to-day control over decisions made to run his companies or assets,” Steven Scheinthal, Fertitta Entertainment’s vice president, general counsel and board member, told NOTUS in an email. “Officers overseeing both his companies and personal assets made the decision to engage in certain stock trades for business reasons, including the belief that certain equities were undervalued.”

Fertitta was confirmed as an ambassador to Italy and San Marino at the end of last April. One month before, he signed a federal ethics agreement that required him not to personally or substantially act in a way that had a direct impact on the financial interests of Fertitta Entertainment. 

However, he was not required to avoid purchasing gaming stocks or to get rid of conflicting business interests associated with Fertitta Entertainment. 

“None of the equities purchased of the various gaming companies have any business activities in Italy and do not constitute a conflict with Ambassador Fertitta’s duties,” Scheinthal said to NOTUS. “Upon his appointment, and for this very reason, he was not required to disgorge his gaming asset holdings.”

Fertitta beefs up gaming options

Fertitta’s recent financial movements aren’t limited to purchasing stock of gaming entities. He took on calls to stock he owned in  Wynn Resorts and DraftKings, per the information shared in the document. The positions were worth $24-117 million for Wynn and $2-10 million for DraftKings.

The diplomat’s avoidance of blatant wrongdoing does not clear him of ethical violations. Morris Pearl, chairman of the advocacy group Patriots Millionaires, questioned Fertitta’s approach to his moral obligations.

“Is it ethical to be leading a business in a regulated environment when you’re representing government interests?” he questioned.

Fertitta already owns a $270 million plot on the Las Vegas strip, for which he hasn’t commissioned development. As the boss of Golden Nugget, he would have the power to initiate development of a new property with live-dealer table games, slot machines, and other common amenities.

He was also approved last year to become the largest individual shareholder in Wynn Resorts, although he swore not to become involved with the company’s operations.

There are no ongoing cases against Fertitta or indications of legal wrongdoing.