$750 Million for Billionaires: The Allegiant Stadium Taxpayer Heist
When the Raiders moved to Las Vegas, taxpayers handed over $750 million—the largest public stadium subsidy in American history at the time. The team's billionaire owner contributed less than half.
In 2017, Nevada approved $750 million in public funding for Allegiant Stadium—at the time, the largest public subsidy for a sports stadium in United States history. The beneficiary: Mark Davis, whose net worth Forbes estimates at over $500 million.
The Numbers
Allegiant Stadium cost approximately $2 billion to build. Here's how it was funded:
- $750 million: Public funding (taxpayers)
- $1.25 billion: Raiders/private funding
That's 37.5% of the stadium paid for by the public—for a facility that generates private profit.
How You're Paying
The $750 million was raised through bonds that will be repaid over 30 years using hotel room taxes:
- Hotels on or near the Strip: 0.88% additional tax (~$1.50/night average)
- Hotels within 25 miles of downtown: 0.5% additional tax
Proponents claim this means "only tourists pay." But Clark County taxpayers have ultimately pledged to pay the bonds as a general obligation—meaning if hotel taxes fall short, residents are on the hook.
The Debt Today
As of 2024, Clark County still owes $1.18 billion on the stadium. The bonds won't be fully paid until 2048—a $59 million final payment 30 years after construction.
During the pandemic, the stadium bonds needed to make two unscheduled draws from the reserve fund to cover payments. With tourism declining (10 straight months of visitation drops as of late 2024), pressure on the bonds is mounting.
Who Benefits?
The Raiders generate hundreds of millions in annual revenue. The Davis family's net worth has increased substantially since the move to Las Vegas. The stadium hosts concerts and events that generate private profits.
Yet taxpayers took on most of the risk and will pay for decades.
What the Experts Say
Victor Matheson, a sports economics professor, noted: "When Allegiant was built, it was the biggest public subsidy for a sports stadium in U.S. history."
He also pointed to an inconvenient comparison: "You've got a beloved NHL team just down the street playing in a venue that's got zero public subsidy in it."
That would be the Vegas Golden Knights at T-Mobile Arena—proof that professional sports can thrive in Las Vegas without taxpayer handouts.
No Reimbursement Coming
Some stadium deals include provisions requiring owners to reimburse public funds if the team is sold or profits exceed projections. Not in Las Vegas.
As the Review-Journal reported: "Don't count on Raiders reimbursing any public money for stadium."