Vegas myth busted again: Howard Hughes drove the Mafia out of town
Editor's Note: "Vegas Myth Busted" is published every Monday, with a flashback edition on Fridays. Today’s entry in our ongoing series was originally published on September 18, 2023.
In 1967, billionaire Howard Hughes bought the Desert Inn from Cleveland syndicate member Moe Dalitz, just to avoid being evicted from his penthouse suite expulsion. Hughes discovered he liked Las Vegas' own casino resort. So he added Sands, Frontier, Silver Slipper, Castaways and Landmark to his new collection.
This drove the Mafia out of Las Vegas. Except, not really.
The main factor that drove away the Mafia was the Nevada Corporate Gaming Act of 1969.
This transformative legislation is in addition to the Gambling Control Act and allows corporations to own casinos by limiting licensing requirements to a small number of executives. Each owner/shareholder must obtain a license prior to adoption.
In a 2021 episode of the "Mobbed Up" podcast, former U.S. Senate Majority Leader Harry Reid called the Corporate Gaming Act "the savior of Las Vegas."
We had a few issues along the way, but overall, the Corporate Gambling Act saved us. " Reed said shortly before his death.
Reed, by the way, served as chairman of the Nevada Gaming Commission (NGC) and had a well-publicized dispute with Chicago oddsmaker Frank "Lefty" Rosenthal while in that role.
You may remember this incident from director Martin Scorsese's 1995 film Casino, and below is a screenshot of the incident.
Hughes only offered help
Hughes helped reduce mob ownership by bringing six casinos off the Las Vegas Strip for bad guys in four years.
But Geoff Schumacher, associate curator of exhibitions at the Las Vegas Mob Museum and Howard Hughes biographer, told Nevada Public Radio in 2016: “There is overwhelming evidence that even after the gangs took over, A lot of the casinos in Vegas, the Strip, the Strip no longer exist." Still utilizing the casinos he purchased there. "
Additionally, while the former movie studio and airline tycoon ran hotels in Las Vegas, mob ownership of rival casinos continued unabated.
Caesars Palace opened in 1966 thanks to a construction loan from the Mafia-linked Teamsters pension fund. Three years later, when its owner, Jay Sarno, sold the property amid a federal investigation into its financing, it was acquired by Clifford and Stewart Perlman. They secretly used Miami gangster Meyer Lansky as a hidden investor, according to the Mob Museum.
Hughes attempted to acquire Caesars Palace as well as Stardust and Riviera, but the deals were never completed due to federal pressure to halt his gaming acquisitions.
When Hughes died in 1976, Lefty Rosenthal also took over stolen, untaxed casino revenues from the Stardust, Fremont, Marina and Hacienda Casinos.
So no, Hughes didn't run the mob out of town.
Throw the book to them
As influential as Hughes was, it was the cumulative effect of the so-called "Black Book." It was a famous list created by Nevada gaming regulators in 1960 of suspected gangsters, fraudsters and others who were banned from the state's casinos.
The list, officially known as the "Disqualified List," includes mobsters such as Nick Silvera, who once led the Kansas City crime family, former Chicago boss Sam Giancana and Tony "Ant" Spilotro Party enforcer, he is believed to be responsible for nearly two cases. A dozen murders.
In the 1980s, Nevada Governor Michael O'Callaghan helped purge remaining mob influence from casino ownership. He did this by appointing members to the Nevada Gaming Control Board (NGCB) who were more resilient to bribes and threats.
But the Mafia is actually "still" in Las Vegas. Although the company no longer owns casinos, it can be seen infiltrating side businesses such as illegal drugs, prostitution, money laundering and loan sharking.
Look for "Vegas Myths Busted" every Monday To read previously debunked Vegas myths, visit: Have a suggestion for a Vegas myth that needs debunking? Email .
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Source: www.casino.org
