1955-1956

At 9:15 a.m. on Friday, November 11, 1955, eight U.S. IRS agents entered the Club Cal-Neva in Reno, Nevada, demanding payment of $65,000 (about $600,000 today) in overdue withholding and excise taxes. When the money couldn’t be proffered, the feds wired shut the casino doors and emptied all of the tables, cashier cages and slot machines of their money. They collected about $50,000 ($463,000 today), which they applied toward the debt.

The week before, the Internal Revenue Service had seized about $23,000 ($213,000) from Club Cal-Neva Inc.’s bank accounts to satisfy a total tax burden of $88,500 ($818,000). Subsequently, the corporation filed for bankruptcy.

The entity consisted of front man Sanford Adler,* Louis Mayberg, Morris Brodsky and Charles Resnick, who’d purchased the former Club Fortune (Fordonia Building) in 1947 from James “Jim” McKay and Jack Sullivan for $250,000 ($2.8 million) and then had spent $500,000 ($5.5 million) on renovating it. They’d opened it on Nov. 20, 1948 as the Club Cal-Neva, where they’d offered 21, craps, roulette, keno and slot machines.

Following the Chapter 11 filing, James “Jim” Contratto and five other men acquired the building, physical assets and lease from Club Cal-Neva Inc. Contratto previously had owned a gambling license for the Colony and Palace Clubs in Reno. His new partners were Robert I. Franks and Al Rogell of Beverly Hills, California; Sam Levy of Douglas, Arizona; John Callas of Huntington, Park, California; and Caspar Van Citter of Reno, Nevada. The group reopened the gambling house, keeping the name Club Cal-Neva, on December 2, 1955. The casino boasted four 21 games, one craps game, one roulette wheel and one keno game along with 150 slot machines.

Replay Down South

Just over a year later, on Friday, November 30, 1956, at 8:30 a.m., 10 federal revenue agents entered the Silver Palace in Las Vegas. One announced over the loudspeaker that the 20 or so customers should leave as the casino’s assets were about to be seized. The crew padlocked the doors and confiscated all of the cash from the premises, as the gambling club owners were roughly $77,000 ($638,000) in arrears on payroll taxes.

The Spinning Wheel Corporation had invested $1.5 million ($13.7 million today) into the Silver Palace and had opened it only six months earlier, with 160 slot machines, two 21 games, two craps games and a roulette wheel. Earl Snyder, a Monterey Park, California contractor, held the majority interest. Marion B. Hicks, Joe Wells and Clifford Jones each had a gambling license for the casino.

In January 1957, IRS agents auctioned off the Silver Palace’s assets, proceeds of which reduced the casino’s tax debt to $38,500 ($340,000). The $87,700 worth of furnishings only brought in $8,745. The Westerner bought the liquor for $6,100. The Saddle Club purchased the office equipment for $1,925.

Subsequently, the Spinning Wheel Corp. put up the building for lease.

*In addition to the Club Cal-Neva, Sanford Adler owned/co-owned several casinos at various times, including the Flamingo in Las Vegas and the Tahoe Biltmore in Crystal Bay at Lake Tahoe.

Sources

Las Vegas Strip (in red) runs through Winchester, Paradise

1950-Today

When people are on the Las Vegas Strip, they’re really in Paradise — the town, that is.

In 1950, a rumor surfaced that the City of Las Vegas’ boundaries would be expanded to include the then multimillion-dollar luxury resort area on South Las Vegas Boulevard. Disliking the idea, the proprietors of the hotel-casinos there collectively strategized to get the area in which their properties sat deemed an unincorporated town. That status would prevent the city from annexing it without the owners’ unanimous approval.

Money was the primary reason the Strip businesses opposed incorporation into Vegas. Costs — gambling and liquor license fees and taxes, for instance — within the city were higher than outside, specifically a tax rate of $5 per hundred dollars’ valuation versus $3.48.

In December the Clark County commissioners approved designation of a one-mile wide and four-mile long stretch as the unincorporated town of Paradise, said to be named after the Pair-O-Dice, a club whose property eventually became the Last Frontier.

These men comprised the newly formed, required town board:

• Gus Greenbaum / Flamingo: manager and associate of Meyer Lansky and Benjamin “Bugsy” Siegel (Greenbaum was Paradise’s board chairman)

• William J. Moore, Jr. / Last Frontier: developer, executive director and vice president

• Wilbur Clark / Desert Inn: front man for Cleveland mobster Moe Dalitz, the principal owner

• Marion Hicks / Thunderbird: architect and manager

• Beldon Katleman / El Rancho Vegas: owner

A major change for the properties in the new township was the lack of access to city services, including sewage disposal and fire protection services. Also, half of all gambling fees collected in Paradise had to be spent on public improvements within the town as opposed to throughout the county, as was the case before.

“What is good for the valley is good for the Strip. We hope this move will bring you better roads, better schools and better everything,” Greenbaum said at a town meeting.

In early 1951, property owners in Paradise Valley, the southern part of the Las Vegas Valley, sought and received approval to annex their unattached land to the newly established Paradise. This expanded the area to 54 square miles.

Paradise Divided

Later, out of the northern portion of Paradise, a second township was created, 7.5 square miles, that became known as Town A. The larger, remaining portion of the original unincorporated Paradise became Town B.

Eventually Towns A and B received official names.

In 1953, Town A was named Winchester. At the time, it encompassed the Sahara, El Rancho Vegas and Thunderbird hotel-casinos on the Strip’s northern end, as well as Last Frontier Village, the Las Vegas Park Race Track, numerous motels and some private homes. The Town A residents liked the name Winchester for its Western flavor and chose it over other suggested monikers, including McCarran, Sunset Heights, Empire, Silverado, Tiffany and Valhalla.

“In addition to getting a new name, the town figures to be one of the richest per capita in the world, since it covers practically all of the multi-million-dollar resort hotel industry, plus several costly motels and the expectation that another $20 million in new hotels will be erected in the near future,” reported the Reno Evening Gazette (Oct. 8, 1953).

Town B recaptured the original name, Paradise. Much larger in land size, it included the Desert Inn, Sands and Flamingo hotel-casinos on the Strip’s southern end and the Paradise Valley ranch area.

Attempt At Unification

In 1975, Governor Mike O’Callaghan signed Senate Bill 601, which would’ve doubled the size of Las Vegas by expanding its boundaries to include the Strip (Winchester and Paradise), Sunrise Manor and East Las Vegas — all unincorporated towns. The goal was to consolidate the various city and county governments and services.

However, before the change could be carried out, the Nevada Supreme Court, in June 1976, ruled that the legislation was unconstitutional for various reasons. One was because the law was passed during a special session, which is illegal per the Nevada Revised Statutes.

“I think that ends it for good,” said Senator James Gibson (D-Henderson), who’d introduced the bill. “It will probably kill [a] merger for quite a while in the future” (Las Vegas Sun, June 8, 1976).

Though relatively unknown except to locals, Paradise and Winchester still exist today, independent of Las Vegas.

Sources