‘Gaping loophole’ in campaign-finance law: Dan Bilzerian, others give big to politicians

Las Vegas celebrity Dan Bilzerian has shoveled mounds of money into Nevada politics, allowed by a legal loophole that lets him give the maximum over and over again to the same candidate through corporate entities, records and interviews show.

It’s a common practice in Nevada, experts say.

Known as the “King of Instagram,” Bilzerian and three of his business entities each gave the max allowed under state law, $10,000 — or $40,000 combined — to current Clark County Sheriff Kevin McMahill’s campaign in fall 2021, state records show.

Bilzerian and two of his entities also each gave the most allowed — or $30,000 total — to Clark County District Attorney Steve Wolfson’s campaign in summer 2022, records show.

Since the U.S. Supreme Court lifted the lid on corporate political spending nearly 15 years ago, outside groups such as super PACs have spent billions trying to influence federal elections. Nevada law, however, has long allowed people to give big to state and local candidates: Contributors can give the maximum allowed in their own name and through a limitless number of corporate entities to the same candidate, experts said.

This legal framework means there is effectively no limit on how much money a wealthy person can contribute to any candidate in Nevada, said UNLV political science professor Ken Miller.

“It’s a well-known gaping loophole in Nevada campaign finance,” Miller said.

Bilzerian, who has more than 31 million followers on Instagram, is famous for his self-promoted image as a macho jet-setter who fires heavy guns and is always surrounded by beautiful women. He owns a mansion in Las Vegas that he’s now trying to sell, and a holding company he owns filed for bankruptcy last year.

Federal prosecutors announced criminal charges last month against a separate company founded by Bilzerian, and against his father, alleging the elder Bilzerian “funneled” money to his son’s business while owing judgments that now surpass $180 million. Dan Bilzerian was not charged or accused of any wrongdoing.

He did not grant an interview or answer the Las Vegas Review-Journal’s questions about his campaign donations. He instead wrote a profane email in response to the newspaper’s request for comment: “You’re missing some others but don’t forget the 100k I donated to the governor you s—-ball.”

Nevada Democrats and Republicans both benefit from the system and are unlikely to change it, but even if they did, donors would simply pour money into politics in other ways, experts said.

“Money always finds a way in,” Miller said.

‘Perfectly legal’ donations

Under Nevada law, a person can donate up to $5,000 to a candidate for their primary race and up to $5,000 for their general election in non-federal races. According to those same laws, a “person” means a natural person, corporation, partnership, trust, labor union and other entities and organizations.

This general framework has been in place for decades.

Legitimate businesses are not barred from making political donations simply because they are owned by one person, and there is “no limit” on how many entities controlled by a single individual can give money to the same candidate, said Cecilia Heston, spokeswoman for Nevada Secretary of State Francisco Aguilar’s office, which supervises state and local elections.

State law does not specifically prohibit someone from forming an entity simply to donate money through it to a candidate, said former Nevada Senate Majority Leader Michael Roberson, an attorney who heads the election and political law practice at law firm Saltzman Mugan Dushoff.

Nevada prohibits political donors from contributing in someone else’s name, so they cannot use “straw” companies to give money, and state law prohibits people from forming a company for illegal reasons, Heston said.

Still, the kinds of donations made by Bilzerian sound “perfectly legal” and are regularly used by other donors, Roberson said.

“It’s legal, and it has been for a very long time in Nevada,” he said.

For instance, if a real estate developer set up numerous LLCs over the years for various deals and projects — a common industry practice — each entity could give the maximum to the same candidate, Roberson confirmed.

Backed by Bilzerian

Bilzerian donated $10,000 to former Las Vegas police Lt. Ray Spencer’s City Council campaign in 2022 and $10,000 to former Las Vegas Deputy City Attorney Rebecca Wolfson’s judicial campaign this year, state records show.

He also gave $100,000 in 2021 to the Stronger Nevada PAC, which supports Gov. Joe Lombardo. Under Nevada law, there are no limits on contributions to political action committees, according to the secretary of state’s office.

The governor’s campaign staff confirmed that Bilzerian did not contribute to Lombardo’s gubernatorial campaign.

McMahill met with Bilzerian and hundreds of other supporters during his campaign for sheriff, and the social media celebrity backed the sheriff “financially and personally,” McMahill’s campaign committee said in a statement.

Steve Wolfson, father of now-Las Vegas Municipal Judge Rebecca Wolfson, previously told the Review-Journal that Bilzerian is a long-time supporter of law enforcement.

“I have met Mr. Bilzerian on a few occasions, and I am fully aware that he has supported my campaign and many others,” he wrote in an email last month.

Corporate spending

Nevada’s last gubernatorial race saw no shortage of Las Vegas donors giving money through a maze of entities.

Ten hotels and subsidiaries controlled by casino giant MGM Resorts International each donated $10,000 — or $100,000 combined — to then-Gov. Steve Sisolak’s re-election campaign in summer 2021, according to campaign-finance records and securities filings.

That same year, six entities controlled by casino chain Boyd Gaming Corp. gave the Democratic incumbent a total of $50,000, and four entities controlled by developer Chris Beavor, founder of CAI Investments, gave $37,500 combined in 2021 to Sisolak, state records show.

Also that year, 19 entities linked to business mogul and GOP megadonor Robert Bigelow gave $5,000 each — or $95,000 total — to Sisolak’s GOP challenger Lombardo, a former Clark County sheriff, state records show.

Boyd Gaming Corp. and five of its hotel properties also gave $30,000 total to Lombardo in 2021, while an MGM subsidiary and two MGM properties gave $25,000 combined that year to Lombardo, who won the race, records show.

In general, companies often donate to candidates from both major parties, as it allows them to be connected to each side, said University of Nevada, Reno, finance professor Shaddy Douidar, who examines corporate political activity and impact.

MGM declined to comment. Boyd Gaming, Beavor and Bigelow, owner of Budget Suites of America and Bigelow Aerospace, did not respond to requests for comment.

If Nevada lawmakers cut back on donors’ ability to give through corporate entities, more money would just flow to outside groups that can take unlimited donation levels and spend big to support candidates and causes, Roberson said.

“That’s happening already,” he said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Segall is a reporter on the Review-Journal’s investigative team, focusing on reporting that holds leaders, businesses and agencies accountable and exposes wrongdoing.