Las Vegas: the Rise and Fall of the Mob

 

Vice and dice . . . they roll together. And from the beginning, organized crime has had its hand in Las Vegas. Called an “open town,” Las Vegas became a magnet for syndicate bosses from Kansas City, Chicago, Cleveland, New York and other eastern cities. Sniffing easy money, the underworld families saw new profit centres in this new city.

In the late 1930s, Meyer Lansky and Benjamin “Bugsy” Siegel consolidated a bookmakers’ national network in Las Vegas, meaning that betting lines and cash were wired through town. After dabbling in downtown casinos, Siegel set his sights on creating a full-fledged resort. Construction of the Flamingo began in 1946, but cost overruns taxed the patience of his mob financiers. When the casino finally opened and immediately flopped, Siegel was a marked man. Suspected of syphoning money for himself, he was gunned down at his Beverly Hills home, and a Las Vegas legend was born.

The mob didn’t skip a beat. Phoenix boss Gus Greenbaum took over the Flamingo, and the second opening was a big success. The $5 million property was years ahead of its time as the state’s first full-service resort. Others would quickly spring up, bankrolled by organized crime and the Teamsters’ Central States Pension Fund.

Union president Jimmy Hoffa wielded the $167 million Teamsters fund. The money supported casino owner Moe Dalitz’s enterprises along The Strip, including the Dunes hotel. The fund helped purchase golf courses and real estate and even built Sunrise Hospital, the city’s first private-care facility.

Convicted in 1964 on mob-related charges, Hoffa disappeared after he served his time. But the “wise guys” were running free in Las Vegas.

The Thunderbird, the Stardust, the Aladdin and other smaller joints were well-known fronts for the mob. Ostensibly regulated by Clark County officials, the operators routinely skimmed profits and flaunted the law. As depicted in the 1996 movie Casino, gangland activity included shakedowns, beatings, bombings and, of course, slayings. The streets of the “open city” at times resembled a shooting gallery as rival Mafia families settled scores.