The firms of hedge fund legends George Soros, John Paulson and Leon Cooperman have quietly turned into big shareholders of Caesars Acquisition Co., a spinoff from casino company Caesars Entertainment that has a stake in Caesars' Internet gambling operations.

The hedge funders are joined as shareholders of Caesars Acquisition by the firms of private equity titans Leon Black and David Bonderman, Forbes reports.

What's particularly noteworthy about the quintet's position is that it puts them in opposition to casino titan Sheldon Adelson, CEO of Las Vegas Sands, according to the magazine.

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While the famous five are investing in online gambling, Adelson opposes it. He likely views it as a threat to his casinos. Adelson tells Forbes he will "spend whatever it takes" to halt online gambling in the United States.

And he has brought on political heavyweights such as former New York Gov. George Pataki to lead his lobbying push.

"There is no reason to put a casino on everybody's kitchen table, in the bed of every young person, whether they are underage or of age, or on mobile phones," Adelson explains. "I don't want people to get addicted."

The markets, however, seem to be betting against Adelson, as shares of Caesars Acquisition are up more than 30 percent from the offering price.

"What I have heard Adelson say is, 'I am very rich, and I don't like Internet gaming,' and those things are true," Mitch Garber, CEO of Caesars Acquisition, tells Forbes. But "Sheldon's eyes are closed to the fact that all goods and services are ultimately going to be purchased on the Internet."

Gambling stocks have performed well recently. The Market Vectors Gaming ETF, which contains major casinos such as Las Vegas Sands and Wynn Resorts, soared 46 percent over the last year.

But that leaves the industry "too hot to handle," writes Money magazine's Susie Poppick.
"Stay away."

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