Lorenzi Lake Park c. 1931

1931

Soon after Governor Frederic “Fred” B. Balzar approved wide-open gambling for Nevada, three men applied for an initial gambling license  from the City of Las Vegas to operate a craps game at Lorenzi Lake Park in the Pavilion building.

Lorenzi, with a pool, dance area, two lakes, rowboats and concessions and an affordable entry fee, was a local hot spot for fun. Numerous events, including concerts, prize fights, horse races, dance contests and beauty pageants, took place there.

The city commissioners denied Roy Grimes, R.H. Davenport and D.J. MacCauley a gambling permit, which they believed was unjust and discriminatory. The new state gambling law began on March 19, and they’d filed their application on April 17, in proper form and meeting all the necessary requirements.

Agency’s Approach Questioned

In fact, the commissioners’ refusal to grant the three men a license was in accord with the agency’s recently adopted resolution, on March 30, that it only would afford gambling licenses in the future to entities that already had one from the previous quarter. The moratorium was to go into effect on April 5 and remain in place until the agency could develop a policy for issuing new licenses and outline a city area in which gambling houses could operate.

However, prior to moratorium decision, the commissioners had granted gambling licenses to six clubs — Boulder, Las Vegas, Exchange, Northern, Red Rooster and Meadows.

“The city commissioners arbitrarily fixed the number to be granted at six, and rejected all other applications other than the six favored ones” reported the Nevada State Journal (May 28, 1931).

Further, after the decision, the commissioners make an exception to the moratorium, which was they could grant  gambling licenses to people of the “Ethiopian race” for games at establishments “that catered to persons of the same race.”

Off To The Courts

In early May, Grimes, Davenport and McCauley filed for a writ of mandamus against the Las Vegas mayor and city commissioners, the first court action to be filed in Nevada regarding the 1931 state gambling law. They wanted the court to compel the agency to give them a gambling license. (Another mandamus action in the wake of the new gambling law was taken later in the month, in Northern Nevada.) The trio’s attorney, Charles Lee Horsey, argued that “the law prohibits discriminations and that all who conform to the same standards must be given the same privileges.”

On May 27, the case was presented to the Nevada Supreme Court, whose jurists had to determine whether or not city or county authorities have the right to limit the number of gambling licenses to be issued in a community.

Gambling Stigma Revealed

The ruling, which came two months later, in July, was the opinion of two of the three judges, Edward A. Ducker and Benjamin W. Coleman. It determined that “the city of Las Vegas exercised sound discretion in denying the application” because it was for a type of business that was “of a character regarded as tending to be injurious” (Nevada State Journal, July 9, 1931).  And when it came to this kind of enterprise, governing bodies could control which ones did and didn’t receive gambling licenses.

Contrarily, Judge John A. Sanders, the sole dissenter, opined that the commissioners indeed had acted arbitrarily and discriminatorily and that the writ should be granted.

Sources

Photo from the University of Nevada, Las Vegas University Libraries’ Digital Collection

The Willows in Reno, Nevada

1931

Despite an influx of newsmen into town to report what gambling now looked like in Nevada’s biggest city immediately following legalization, a move they described as “reviving the days of the pioneer west,” the status quo endured (Nevada State Journal, March 21, 1931).

“There was no wild rush to the gambling resorts and the Saturday night celebration was but little different from that of other Saturday nights. The only apparent difference … was to center interest of the country on the fact that people gambled in Reno and now may continue doing so, without violating a law,” the Reno Evening Gazette reported (March 23, 1931).

After Governor Frederick “Fred” Balzar had signed the bill into law on Thursday, March 19, 1931, the business-as-usual atmosphere primarily was because some forms of gambling already were legal prior to him doing so and other illegal forms operated, albeit underground. High-stakes and roulette games were new, though, and began to appear.

A Minor Snafu

The recent legislation required any casino to obtain a license and pay the necessary fees in advance for every gaming table and/or slot machine they had on site. Any new enterprises, therefore, had to do so immediately, but those already licensed under the previous law could wait until their existing one, good for three months, expired.

In Northern Nevada, a minor snag, however, prevented the Washoe County sheriff from issuing licenses to anyone who’d applied. He didn’t have the necessary forms because the printing company hadn’t delivered them yet. This delay spanned five work days. Finally, on Thursday, March 26, Sheriff E. Russell Trathen dispensed the first license to the proprietor of the Owl Club. By week’s end, he’d issued 64 to various businesses.

In Southern Nevada, the first Las Vegas city gambling license went to the owners of the Northern Club the day after the new gambling law went into effect. The Northern Club, outside of town, received the first Clark County gambling license. Soon, the first lawsuit concerning licensing under the new law would be filed. 

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