Dispelling Misconceptions: Bugsy Leads Mafia into Las Vegas in 1946
Bugsy Siegel is mistakenly accredited for bringing the mafia to Las Vegas in 1946. Instead, he manipulated Billy Wilkerson's gambling addiction to steal the unfinished Flamingo casino resort from him.
Wilkerson, proprietor of the Hollywood Reporter, acquired the land where Flamingo would be constructed, named the casino, and even started construction in 1945. However, he ran out of money due to his expensive habit.
Who came to his rescue?
Already Positioned
Bugsy initially ventured to town in 1940, to invest in the Northern Club downtown, looking for a portion of the race wire market.
Five years later, he and his associate, Moe Sedway, launched their race wire, TransAmerica, through which they ran the horse betting at the Frontier, Las Vegas Club, El Cortez, and other Las Vegas casinos.
Race wire services shared data on horse racing entries, odds, payouts, and outcomes across a network of telegraph wires.
Without it, operating a gambling establishment was hazardous to your health.
Siegel and Sedway then spread their reach to other types of gambling, managing the entire floor of El Cortez, operating it for their East Coast mafia boss Meyer Lansky, prior to plotting a Flamingo seizure in 1946.
Early Mafia Movers
Contrary to popular belief, the mob's infiltration of Las Vegas predates Bugsy's arrival by nearly a decade.
One prominent example was Maurice H. "Goldie" Goldsworth, an up-and-coming player in the L.A. gambling racket who was tempted by the prospect of an untapped legal market.
Before Governor Fred Balzar signed Assembly Bill 98 into law on March 19, 1931, Las Vegas had not had legal gambling since Nevada banned it in 1910.
Anxious to profit from her recently opened nightclub, but unacquainted with gambling, "Ma" Morris enlisted the help of a gambling expert.
And who were the top dogs in illicit activities during the 1930s? Mobsters like Goldie.
In exchange for a percentage of the profits, Goldie secured a modest gambling license – for a blackjack table and three slot machines – and on April 1, 1931, the Red Rooster became the first licensed casino on the future Las Vegas Strip.
Even with a four-casino lead on the Flamingo, the Red Rooster lost its gaming license, inexplicably, for serving alcohol.
Alcohol was banned under the same conditions in the rest of the United States until Prohibition was repealed on Dec. 5, 1933. On May 18, 1931, authorities arrested "Ma" and her husband, who were convicted, granted probation, and fined $500.
Goldie's Mob-Related Murder
Mob historians spar over whether or not Goldsworth had genuine ties to the mafia. However, the LA police were convinced. Or rather, the cops who investigated his murder.
Per the Los Angeles Times, Goldsworth, 52, suffered a brutal hammer beating in the back seat of his car on Oct. 16, 1958, and was later stuffed in the trunk. LA coroner reported inconsequential gunshot wounds on his head.
The only belongings they found were a white handkerchief, half a pack of cigarettes, and some paint flecks on his blood-stained body. Additionally, his pockets were emptied, indicating a search for something.
"There is no doubt about it," LA Police Chief William H. Parker stated to the Associated Press at the time. "This is a mob job."
Killer Concedes
Law enforcement solicited a confession from Clifford Rue, the owner of an LA credit service.
Rue, 34, admitted to murdering Goldsworth but claimed he did it to retrieve the $4,200 Goldie had coerced from him at gunpoint to pay off a personal gambling debt.
Rue stated he wrapped the body in some paint drop cloths, stuffed it in the trunk of his victim's hard-top convertible, and drove it into the desert for a furtive burial.
Instead, Rue said, he got lost and abandoned the car on a dead-end street.
Rue was convicted of second-degree murder and jailed on Feb. 27, 1959.
Why a young person would waste a significant portion of their life for what would only be worth $45,000 today has prompted questions about whether Rue was a mafia assassin.
However, whether Rue belonged to the mafia or not doesn't help identify whether his target was involved in organized crime.
This is a convenient moment to mention that the Associated Press journalist covering Goldsworth's murder informed their readers that Goldsworth had connections to a midwestern bookmaking syndicate.
Such a well-connected figure could have easily opened a new Las Vegas casino like the Red Rooster.
And St. Louis police were told by Goldsworth's own brothers that he was partnered with one Sid Wyman.
Wyman, like Goldsworth from St. Louis, was a co-owner of the Flamingo. Lansky sent him a telegram from Miami on June 21, 1947 - the day after Bugsy Siegel's assassination.
"Sid," it read, "Ben Siegel found dead in Beverly Hills... From today onwards, replace all locks in the casino cage. No money transactions or IOUs over $1,000.00 until my arrival tomorrow evening. Continue with business as normal for the rest of the staff."
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