Influential donors to the Democratic Party from Silicon Valley and Wall Street are urging Vice President Kamala Harris to dismiss Federal Trade Commission (FTC) Chairwoman Lina Khan if she secures the presidency in this year’s election. This push from well-heeled contributors also extends to Securities and Exchange Commission (SEC) Chairman Gary Gensler, despite the relative silence on this matter from the gaming industry. However, ties within the industry, particularly regarding Khan, suggest underlying tensions.
Earlier this year, the FTC launched an investigation into MGM Resorts International’s response to the September 2023 cyberattack that significantly disrupted the casino giant’s domestic operations. This sparked a series of legal confrontations between the FTC and MGM. In a notable development in June, MGM sued the FTC, demanding that Khan recuse herself from the investigation due to her and several staff members being guests at an MGM property during the cyber intrusion. Khan has shown no intention of stepping down from the investigation, and the legal battles between the two parties continue.
Appointed by President Biden in 2021, Khan’s term at the FTC is set to expire on September 25, though it is expected to be renewed to avoid a vacant top spot after the election. Should she commit to another term, Khan would remain in her position for a significant part of Harris’s potential first term unless Harris decides to terminate her appointment.
Barry Diller, Chairman of IAC/InterActiveCorp, is one of the prominent Democrat donors calling for Khan’s removal. In a July interview with CNBC, Diller disparaged Khan as “a dope” who opposes nearly all measures that facilitate business growth. Despite later softening his remarks, Diller’s stance on ousting Khan remains evident. The FTC’s lawsuit against MGM might have influenced his opinion, given Diller’s significant ties to the gaming industry. Both Diller and IAC CEO Joey Levin serve on the board of MGM, with IAC holding about 20% of MGM’s shares.
In parallel, SEC Chairman Gensler faces growing pressure from Harris’s affluent supporters to be relieved of his duties, although he has been speculated as a potential candidate for Treasury Secretary. Notable figures among these backers include Mark Cuban, who last year sold the majority control of the NBA’s Dallas Mavericks to Dr. Miriam Adelson and Patrick Dumont. Adelson is the largest shareholder of Las Vegas Sands, while Dumont serves as the casino giant’s president and chief operating officer.
