Sports betting firms are buying attack ads in Maryland House of Delegates primaries

The flyers are dramatic.

Hasan “Jay” Jalisi has “too many red flags” to be sent back to the House of Delegates, including a reprimand from his colleagues, a protective order sought by his daughter, and “shady” business practices.

“Jay Jalisi has shown us who he is,” the mailer warns.

Del. Frank Conaway Jr., meanwhile, “supported Donald Trump’s ICE tactics” and also shouldn’t be elected, another mailer alleges.

The attacks come not from Jalisi’s and Conaway’s opponents in their Baltimore-area races but from a political action committee funded by national sports gambling corporations.

Those companies are spending big on efforts to expand sports betting, according to The New York Times, including attempts to legalize it in Georgia and Texas. Sports betting is already legal in 35 states and Washington, D.C.

The super PAC, American Future, has spent close to $1.9 million so far in Maryland’s Democratic primary elections — a significant amount for General Assembly races — according to state campaign finance records. The Dallas-based PAC’s website says it supports “strong, bold Democrats” on issues such as cost of living, gun violence prevention and affordable housing.

Much of its spending supports incumbent Democratic state lawmakers and a few Democrats who are trying to knock off Republicans. It also supports the state Senate president, who is facing a serious challenge.

But the source of the American Future PAC’s money is another entity called Win for America, which sports gambling giants like DraftKings, FanDuel and Fanatics seeded with $41 million in April, according to federal filings.

Sports gambling is mainly regulated by states, following a 2018 U.S. Supreme Court decision that struck down a ban on sports betting in most states. Following approval by voters in 2020, in-person sports betting began in 2021, followed by mobile betting in 2022.

American Future was set up to allow sports betting companies to influence state legislative races on the Democratic side. There’s also the American Conservative Fund on the Republican side, which hasn’t been active in Maryland this year.

Senate President Bill Ferguson, perhaps Maryland’s most influential lawmaker, has benefited from nearly $290,000 worth of positive ads from American Future. The Baltimore Democrat is facing a spirited primary challenge from small business owner and social media personality Bobby LaPin.

But one-third of the super PAC’s spending — more than $645,000 — is focused on aggressive ads against Jalisi and Conaway.

As a super PAC or independent expenditure entity, American Future can spend unlimited amounts of money but cannot coordinate with any specific candidate’s campaign.

A representative for Win for America declined to comment on the activities in Maryland.

“These organizations seek candidates who will thoughtfully approach regulation and ensure legal sports betting can continue to support communities through billions in tax revenue and jobs across America,” the group told Axios in April.

Jalisi, through an attorney, alleges that American Future is violating state campaign finance laws by not disclosing its donors in reports to the state. Jalisi’s attorney, Jack Lapidus, has filed a complaint with state elections officials and is seeking a restraining order to halt the super PAC’s actions.

Lapidus said it’s “highly inappropriate” for an out-of-state PAC to tell voters “how to vote and who to vote for” without disclosing where the money is coming from.

‘Maryland’s Worst Democrat’

Despite the source of the super PAC’s funding, its ads against Jalisi and Conaway are not tied to their positions or votes on gambling issues.

The anti-Jalisi ads focus on the former delegate’s legal and ethics problems as he seeks a political comeback. Jalisi spoke to The Banner only about his campaign’s legal actions and declined to discuss the content of the ads.

Jalisi served two terms in the General Assembly, representing a House of Delegates district in western Baltimore County from 2015 through 2023. He lost bids for Congress in 2020 and for the state Senate in 2022.

In 2019, the House of Delegates voted unanimously to reprimand Jalisi after an ethics investigation found he had forced his staff to work unpaid overtime and bullied them and others. Jalisi called it a “political hit job.”

Before that, Jalisi’s teenage daughter secured a protective order against him after alleging in court papers that he had slapped her during an argument. Jalisi lost his seat on the House Judiciary Committee as a result.

Jalisi and his real estate company, HMJ Management Company, have been sued by a tenant who alleged their apartment was unsafe and by a title company for a problematic real estate deal, according to news reports.

American Future mines all of that history, plus Jalisi’s voting records, for scathing attack ads.

A video ad from American Future dubs Jalisi “Maryland’s Worst Democrat” for voting against funding for hospitals that provide abortion care and for voting against making spousal rape a crime.

“Jay Jalisi wishes his Red Flags would go away,” one mailer says. “It’s time to make HIM go away.”

‘He failed’

The ads attacking Conaway focus on the delegate’s recent votes in Annapolis that weren’t in line with the Democratic majority.

Conaway said he isn’t surprised to be taking heat for his votes, but is taken aback by the scale of the campaign against him.

“I’m surprised at the level of the super PAC thing,” said Conaway, a member of a Baltimore political family that’s had several members hold public office.

The American Future ads attack Conaway for his recent votes against Democratic priorities aimed at pushing back against the Trump administration. As Democrats voted to restrict federal immigration enforcement and to allow people to sue the feds in state court, Conaway often voted “no” with Republicans.

“Frank Conaway Jr. was the only Democrat to vote with Donald Trump,” a mailer reads. “He voted to allow masked agents and ICE enforcement in schools.”

Another mailer features a picture of Trump with the message: “When Frank Conaway Jr. had the chance to hold Donald Trump and ICE accountable, he failed.”

Conaway said he stands by his votes, explaining he was persuaded by the arguments made by county sheriffs that there could be a threat to public safety if they could no longer coordinate with Immigration and Customs Enforcement.

“I don’t think this lack of cooperation with federal authorities is correct,” Conaway said. “I think it’s bordering on sedition, being vocal about ‘We’re going against the Trump administration.’”

As to why the sports gambling super PAC is targeting him, Conaway wouldn’t speculate.

He noted that he’s not part of the Team 40 Unity Slate that the other lawmakers from his district are on. Instead, the other incumbents are teamed up with candidate Tiffany Welch, who hopes to unseat Conaway. American Future paid for a text message promoting the slate members.

Conaway said he makes up his own mind and explains his votes to constituents.

“It’s up to the people what they want to do,” Conaway said. “Either way, I appreciate having the opportunity to serve that I did.”

Banner reporter Sapna Bansil contributed to this story.