The article, “Las Vegas Gamblers Arming in Control Battle,” ran on the front page of a Los Angeles newspaper in the third week of December, to the chagrin of Nevada gambling regulators, casino owners, officers of the law and other industry representatives.

The story reported that in the new iteration of Sin City:

• Casino owners (gamblers) were readying to fight for control of gambling there
• Many gamblers were carrying weapons and had armed bodyguards
• Men (presumably hired by the gamblers) were cruising competing casinos’ parking lots, trying to persuade guests to play at their clubs instead
• Ladies planted in cocktail lounges were directing visitors to specific casinos
• Although unreported, several physical beatings took place in gamblers’ inner circles
• One casino owner left the state because his life had been threatened*
• Fixers, dispatched by East Coast Mafia heads, were en route to negotiate a truce

Landscape At The Time

In the ’40s, downtown Las Vegas transformed when a handful of its gambling properties changed owners and names. The 1949, or post-war, Fremont Street was home to the:

Las Vegas Club (1930)
Boulder Club (1931)
Frontier Club (1935)
El Cortez Hotel (1941)
Western Club (1941)
Pioneer Club (1942)
Santa Anita Turf Bar (1943)
Monte Carlo (1945)
Golden Nugget (1946)
Club Savoy (1946)
El Dorado Club (1947)

Downtown Las Vegas in early 1950s

Also in that decade, the city saw the start of what would become the Las Vegas Strip, with the debut of this quartet of hotel-casinos:

El Rancho Vegas (1941)
Last Frontier (1942)
Flamingo (1946)
Thunderbird (1948)

Still fresh in the minds of those in the gambling world was the execution two years earlier, in 1947, of Benjamin “Bugsy” Siegel, violent mobster (Genovese crime family associate) and Meyer Lansky pal. Siegel had overseen (badly) the building of the Flamingo in Vegas, and had run the business until his murder.

In mid-December 1949, the Flamingo double-crossed Club Savoy, which was across the street, with a play that involved a cheating gambling stunt. The incident was extensively reported in the papers when Savoy’s owner refused to pay the Flamingo its winnings. It was negative publicity that gambling regulators and state officials disliked.

Also around the time, several casinos agreed to stop some of their blatant efforts to poach customers from other gambling properties. They’d used people on megaphones and “circus-type banners” to inform passersby that their slot machines had better payouts than their competitors’.

The L.A. newspaper article didn’t specify which gambling factions supposedly were fighting one another. Perhaps it was a Strip vs. downtown beef.

Similar, Widespread Reaction

The overarching response to the newspaper report from the big names in and associated with the Vegas gambling industry was denial: A turf war? What turf war? Calling the article’s contents hogwash, they deduced it merely was an attempt to hurt Nevada’s booming sector at a time it would feel it the most, the New Year’s Day weekend.

Here are some of the individuals who publicly weighed in and their comments. (All quotes are from the Nevada State Journal, Dec. 29, 1949.)

Gus Greenbaum, mobster, Meyer Lansky lieutenant and Flamingo hotel-casino president:

“The stories to that effect are fabricated entirely,” he said, specifically referring to an impending war for control. “No guns are being carried on any hotel or club property except by authorized personnel.”

Spokesman for the Nevada Tax Commission, the then gambling regulation agency:

Any impending warfare over gambling control “is news to us.”

Spokesman for the downtown casinos, who asked to remain anonymous:

“Relations between the gambling clubs and the casinos are more harmonious than ever. We think the story was carried mainly to counteract favorable publicity given our gaming recently by another Los Angeles newspaper. This whole business has been dreamed up by some eager newspaper correspondent.”

William J. Moore, Jr., Hotel Last Frontier executive vice president and tax commission member:

He wasn’t aware of any threats on the gambling scene, he said. In fact, the various gamblers have gotten along well in recent months and hold weekly meetings to hash out any issues. The story was “a deliberate attempt to keep California dollars from coming into the state, appearing as it did on the eve of the biggest weekend in the history of gambling in Las Vegas.” He added Vegas gamblers aren’t using “steerers,” or “persons corresponding roughly to ‘B’ girls in cocktail lounges who direct visitors to a certain casino,” which the state prohibits.

Archie Wells, City of Las Vegas acting police chief:

He didn’t know about any alleged beatings of certain gambling figures, he said. “We checked thoroughly and found no violence of any kind — reported or otherwise.” His department found no evidence the reports perhaps stemmed from possible attempts at revenge by Club Savoy.

Glen Jones, Clark County sheriff:

“We’ve received the utmost cooperation from all gambling operators.” He didn’t know of any gambler who was carrying a gun openly other than the special officers with deputy sheriff status in the clubs.

Informal Peace Summit

After the story appeared, the city’s casino and gambling club owners quickly convened to address its allegations.

They must’ve come to a mutually satisfactory resolution, if in fact a battle for gambling control had been underway or imminent, as no lives were taken . . . at least that we know of.

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* One gambler, Beldon “Jake” Katleman, co-owner of the El Rancho Vegas, had traveled to the Middle East recently but was back in town at the time the newspaper article was published, the Nevada State Journal noted.

Sources

Interior of the Bonanza Club in Reno, Nevada

1944

The debut of the Bonanza Club* on October 3, 1944 in Reno, Nevada, was doubly significant. Formerly the Barn Club, the new casino was regarded as one of, if not, the finest in the state; about $300,000 (roughly $4.2 million today) were spent on redecorating and equipping the place. It also was one of the first gambling houses in The Biggest Little City to have been funded and run by ex-Nevada mobsters.

Underworld Involvement

Financing to redo the property was provided allegedly by Moe Dalitz, Detroit mobster, and Frank “The Prime Minister” Costello, boss of New York’s Luciano (later Genovese) crime family. Their straw man, Wilbur Clark, who’d purchased and fronted the El Rancho Vegas in Las Vegas (1941) for Costello and mobster Meyer Lansky, bought the Bonanza Club in 1944 and ran it for only months. He would move on to open the Monte Carlo club in Las Vegas (1945), the Desert Inn, also in Vegas (1950), and the Tropicana casino and the International Casino, both in the 1950s in Havana, Cuba.

Mobster Louis “Lou” Wertheimer** officially took Clark’s place at the Bonanza Club the same year it opened. A former member of the Chesterfield Syndicate in Detroit, Michigan, he had numerous past arrests and gambling experience running casinos in home town Cheboygan and Detroit, Michigan; Cleveland, Ohio; and West Hollywood and Palm Springs, California. Wertheimer would sell his ownership in the Bonanza in advance and move to operating the Mapes casino when it debuted in December 1947.

A Look Inside

The elaborate Bonanza Club boasted a gaming section with two roulette, two craps, three 21 and one Big Six games along with 24 slot machines. It also contained a 58-foot bar with a full length mirror. In the 100-person dining room, lunch and dinner were served, and entertainment featured a two-piano ensemble or a violin-piano duo.

October 10, 1944 newspaper ad

Tom Douglas of California — designer of Ciro’s and LaRue’s, well-known Hollywood nightclubs — followed an 1890s theme to embellish the Bonanza Club’s interior and exterior. Inside, the walls and carpet boasted a “bonanza red” color, contrasted by the white ceiling frescoes. Lace curtains, gilded lamp fixtures from San Francisco’s Barbary Coast and plate-glass mirrors in heavy gilded frames further adorned the space.

“The most striking attribute of the Gay-Nineties motif club were the wall fixtures, eight-foot tall nude ladies who appeared to be holding the ceiling in place,” wrote Al W. Moe, in his Nevada Casino History blog. These busty figurines were custom made by a Beverly Hills firm, “which employed live girls to model and from whom were cast the delightful likenesses, completely charming as well as stunning, wrote Raymond Sawyer in Reno, Where the Gamblers Go!

The Architect

The club was built by Thomas E. Hull, the mobster-affiliated owner of Hull Hotels, which operated hotels it constructed, including the El Rancho in Las Vegas (until Clark and Detroit mobsters took over) and numerous non-gaming ones in California.

Initially, Hull, his sister Eunice Lewis and Larry Tripp co-owned the Bonanza Club. Tripp previously had helped open the El Rancho and, also in Southern Nevada, the Last Frontier Hotel (1942).

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* The Bonanza Club was located at 207 N. Center Street, Reno. The property today is part of Harrah’s Reno Hotel and Casino.

** Lou’s eldest brother, Myrton “Mert”  Wertheimer, ran the gambling at the Riverside Hotel starting in 1949 and bought, with a co-investor, the entire property from George Wingfield in 1955.

Photo from the University of Nevada, Reno’s Digital Collections

Sources