1952

The life of wealthy, prominent businessman with several connections to the gambling industry, Thomas “Tom” A. Keen, 56, was abruptly ended at about 10:07 a.m. on Tuesday morning, February 5. 

After giving some duck eggs to a neighbor, this San Mateo, California resident walked back home. He grabbed his coat, kissed his wife good-bye and went to their detached garage to leave for work.

Once in his green Cadillac Fleetwood, he stepped on the starter. Dynamite hidden under the floorboards ignited and blew up. The fatal explosion propelled Keen’s body into the car’s back seat and sheared off his legs.

Car parts took flight. One side of the garage blasted apart. Windows of the Keen’s 16-room mansion shattered, covering the driveway and sidewalk with glass. Two windows of a home across the street also broke into pieces.

“The terrific explosion scattered flesh, metal and wood over a wide area,” reported The Humboldt Times (Feb. 6, 1952). “It was heard for blocks by residents.”

Connections To Gambling

Example of a more modern dog racing tote board

The San Mateo, California resident had worked for the past couple of decades years in the field of dog racing and horse racing. First, he’d built and operated the dog racing tracks in Belmont and Bayshore City in The Golden State. He’d co-invented the mechanical hare used in the sport. When California outlawed dog racing, he’d shifted his business focus to manufacturing and supplying totalizators,* also called totalizers and tote boards, for race tracks. Currently, he was president of the International Totalizer Company, based in Belmont.

Keen’s work took him around the U.S., to states where dog and horse racing were legal. Most recently, he’d been to Phoenix, Arizona to install one of his totalizators at a dog track. One month earlier, he’d installed five of his quinella** machines in the Miami Beach Kennel Club for purposes of demonstration.

Keen had ties with many dog and horse track operators, many of them connected. At the time, Mobsters controlled many such tracks in the country.

The Tucson-born track betting equipment mogul owned stakes in many tracks, including Sportsman’s Park in Cicero, Illinois; the Multnomah Kennel Club in Portland, Oregon; and the Mile High Kennel Club in Denver, Colorado.

“He had no one to fear,” said Keen’s friend and sports shop owner Joe Darcy. “He was never afraid. He did nothing but good for hundreds of people. Who could have done something so horrible?”

Keen

Theory No. 1

According to San Mateo Police Chief Martin McDonnell, Keen likely was killed because he took business into a territory out of which he’d been warned to stay. His department’s investigation led McDonnell to deduce Keen had been killed because he’d tried to place his quinella machines in a certain Florida hotel. The chief also surmised there most likely had been two killers, carrying out the assassination on behalf of a Mobster boss somewhere on the East Coast.

Theory No. 2

The second hypothesis was put forth by the California Crime Commission, which had held an unprecedented closed hearing in early May 1952 to investigate the Keen case. In its final report, the commission purported that Keen had been murdered because he’d owed the Olmo Group bookmaking enterprise about $20,000 (roughly $210,000 today).

Allegedly, Keen had been an Olmo customer and a heavy bettor and had refused to pay his debt even after the group’s enforcer Richard “Big Dick” C. Trabert had tried “persuading” him to do so. As a result, supposedly Mobster-gambler Emilio Giorgetti and John O’Neil, also part of the Olmo ring, had been forced to cover the loss. (Keen’s estate at the time he passed away was worth $204,000 (about $2 million today).

The San Mateo County District Attorney Louis B. Dematteis, who wasn’t corrupt, didn’t give the bad debt theory much credence, he said. The timing — Keen being murdered two years after the Olmo Group had disbanded — didn’t make sense. Dematteis thought it more probable the murder was tied to more recent events.  

The actual motive behind the murder of Thomas Keen remains a mystery; the crime still is unsolved.

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* A totalizer is the system for running parimutuel betting. It’s an electrically operated board that flashes the changing odds and total bets before dog and horse races and the payoff amounts after.
** A quinella, or quiniela, is a bet in which the first two places in a race must be predicted, but not always in the correct order. Quinella machines, which displayed these types of bets, were used in dog, but not horse, racing.

Part II and Part III.

Sources

1938-Today

Bets placed, spectators occupy the stands, waiting. Anticipation, excitement fill the air. Finally, the get-ready bell dings, and the crowd quickly quiets.

The start signal sounds. The gates open. Out lunge the competitors, into an immediate sprint. Hunting instinct kicks in. They deftly chase a single lure, sometimes a hare, unaware it’s fake.

Muscles in their lithe bodies bulge as they round the track. Their stride is wide, their motion smooth. They run as fast as 45 miles per hour.

In a flash, 30 seconds or so, they finish the lap. The winner is announced. Payouts are made.

This described activity, live dog racing as a gambling form, never really took off in The Silver State like it did in others, such as Florida and Oregon.

Today, it’s illegal, per Nevada Revised Statute 466. The law dictates that running such an operation is a misdemeanor, punishable by a fine of up to $1,000 and/or a jail term up to six months. Anyone with such a conviction also could be disqualified from obtaining or maintaining a gambling license. (Dog racing without gambling, that doesn’t violate any animal cruelty laws, is legal in Nevada.)

Maiden Races In Nevada

The first dog racing with gambling in Nevada took place in 1938 and 1939 at the Reno Speedway at Lawton’s Hot Springs just west of Reno. (The first dog track was built in the U.S. in 1919, in California.) Presumably, these races at Lawton’s were held illegally because existing Nevada laws that legalized gambling didn’t cover dog racing or optional betting. At the same time, no law specified either as being prohibited. With optional betting, wagerers purchased options on dogs of their choice, and winners redeemed their options for cash.

All was quiet on the Nevada dog racing front until 1947.

The Pot Gets Stirred

In September of that year, some Los Angeles-based promoters doing business as the Nevada Turf and Kennel Club applied to the Nevada  Racing Commission for a license to conduct dog racing in Reno. Three members comprised the commission — Ernie W. Cragin and J.K. Houssels, in Las Vegas, who opposed dog racing, and Tom G. Wheelwright, of Ely, who didn’t.

The racing commissioners denied the permit for a few reasons. Primarily, they believed the applicants were more interested in the gambling element than the racing one. Also, commissioners declared dog racing to not be in Nevada’s best interest.

With the assistance of Reno attorney Douglas Busey, the race promoters filed a writ of mandamus that would make the racing commission grant them the license they’d requested.  

Judge Merwyn Brown of Winnemucca heard arguments on the petition in December and announced his ruling two months later.

He determined the license denial lacked merit, given the commissioners had failed to provide any evidence to support their reasons for it. Brown stated, too, the commissioners had overstepped their bounds in that the question of whether dog racing was good or bad for Nevada was a public policy matter, and thus under the Legislature’s purview, not theirs.

Thus, Brown ordered the commission to issue a license to the Nevada Turf and Kennel Club, and in doing so, essentially declared dog racing with gambling legal.

Despite the green light, the license recipients never followed through with a track and races, for unknown reasons.

Pros And Cons

With the issue fresh in Nevadans’ minds, during the 1949 Nevada legislative session, the Senate introduced bill 103, which sought to ban dog racing by classifying it as a public nuisance.

Proponents of the measure claimed dog racing wasn’t clean (doping was prevalent), not established in The Silver State and without state laws to control it.

Opponents argued dog racing would bring more tourists to Nevada and increase much-needed revenue for it. At the time, dog racing was legal in eight states, including California and Oregon. At least four lobbyists from California aggressively sought to get the bill defeated. According to Nevada Assemblyman James Johnson (D.), White Pine County, some of their tactics were unacceptable.

“One of them even intimated to me that they didn’t have any money now but that if we killed this bill they might have some within a year or two and they intimated they might be able to pay off later,” Johnson said (Reno Evening Gazette, March 12, 1949).

Assemblyman Harry Claiborne (D.), Clark County, argued that allowing dog racing wasn’t worth any amount of money and if it was permitted, “you’re going to have in two years the biggest mess in Nevada that you’ve ever had with gambling” (Nevada State Journal, March 13, 1949).

Governor Vail Pittman signed SB103 into law in early April 1949. (Interestingly, while the bill added dog racing as a public nuisance, it removed prostitution as one.)

The Issue Revisited

Walking back its longtime stance on dog racing, the Nevada Legislature passed a bill in 1973 allowing greyhound racing but only in Henderson and only when held in conjunction with horse racing.

In December 1976, the racing commission granted a license to Las Vegas Downs Inc. to hold dog racing 200 days a year and horse racing, 100 days, once the track is built. The commission also waived the horse racing requirement for the first season.  

In August 1977, the same agency granted David J. Funk & Associates a gambling license to manage the proposed (it still hadn’t been built) Henderson dog and horse race track. Funk and his family had lots of experience in this area, having run multiple dog tracks in Arizona.

Financing problems delayed dog track construction time and time again, but it finally happened in 1980. The track opened in mid-January 1981, offering daily racing and parimutuel betting.

For the second season, by law, the track had to be modified for horse racing, another expense, and it wasn’t done. This ended dog racing in Henderson.

No More Wavering

Starting in the 1990s, many U.S. states reversed their laws that legalized live dog racing plus betting. Nevada was the eighth state to do so. It lowered the final curtain on this gambling form in 1997. The pertinent statute, NRS 466.095 reads: “Issuance of license to conduct dog racing or pari-mutuel wagering in connection with certain dog racing prohibited.”

The law remains in effect today, nearly a quarter-century later.

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Top greyhound photo: By Matt Schumitz, from Wikimedia Commons

Sources

Mexico’s Monte Carlo and Sunset Inn

1913-1929

With various state bans on gambling and, later, a nationwide prohibition against liquor, many Americans, particularly wealthy Southern Californians, traveled to casinos in Mexican border cities to play and imbibe.

“The great hegira* is in, and already these towns are filled to the limit with throngs of the thirsty, willing to pay big sums for the pleasures banned by law on American soil,” reported the Reno Evening Gazette (March 30, 1920).

Here are some casinos that lured U.S. citizens across the border to do what they legally couldn’t at home:

In Calexico

• Owl (Tecolote) Café and Theatre: Large but unadorned, “an immense barn-like structure,” the Owl boasted nearly 40 tables for keno, faro and poker along with many roulette wheels (The Bakersfield Californian, Feb. 10, 1920). Advertisements for the gaming resort touted: “Both night and day, across the way, you will never find closed, the Owl Café.” Three Bakersfield, California, saloon and brothel owners — Marvin Allen, Frank Beyer and Carl Withington — or ABC Corp., opened the Owl around 1913. Seven years later, a fire that raged for three hours burned it down.

“The destruction of the Owl leaves one large gambling house in Mexicali, a Chinese establishment where many of the games are beyond the ken** of the average American,” reported The Bakersfield Californian (Feb. 10, 1920).

In Mexicali

• Casino de Mexicali: Following the conflagration of the Owl, Governor Esteban Cantu of Baja, California, built and oversaw in his capital city the upscale Casino de Mexicali, which also was open 24/7. Luxuriously appointed, the entire top floor was divided into suites equipped with games for wagering. Cantu charged customers an initial $250 membership tax (about $2,950 today) and a $20 monthly fee. In the first month alone, 2,000 people had joined. In its early days, the Casino de Mexicali drew about 25,000 to 30,000 Americans per day.

“The project stood Cantu an even million dollars before a wheel turned,” noted the Reno Evening Gazette (March 30, 1920).

In Tijuana

• Feria Típica: This traditional fair, the brainchild of Antonio Elosúa, offered gambling in the forms of cockfighting, bullfighting, bull baiting and horse racing along with folk dancing and Mexican food and drink. It debuted in 1915 with the slogan: “Where Everything Goes and Where Everyone Goes.”
• Monte Carlo: Elosúa opened this casino the following year. Adjacent to the Feria Típica’s open-air arena, it offered cards and dice table games, slot machines and roulette wheels. By 1917, ABC Corp. had bought out all of Elosúa’s holdings.
• Sunset Inn: ABC Corp. and Jim Coffroth built in 1920 this new $1 million casino with a balcony that overlooked the racetrack. The proprietors added to the casino’s events schedule many of the feria’s most popular exhibitions, like bullfighting.

“To lure and keep gamblers on the property, the new Monte Carlo served decent enough 75-cent meals and the dance hall stayed open all night,” wrote Lawrence D. Taylor (San Diego Historical Society Quarterly, Summer 2002).

• Agua Caliente Casino and Hotel: Another trio of Americans — Wirt G. Bowman, Baron Long and James N. Crofton — built this ornate, $10 million, Spanish-style resort that boasted a casino offering faro, roulette and baccarat, horse and greyhound racing among other recreational amenities. Four-person bungalows allowed for gambling in private. Located six miles south of the border near the hot spring, the property opened in two phases, in 1928 and 1929. During its heyday, Agua Caliente attracted a slew of tourists, among them famous Hollywood stars.

“American cupidity has enriched the gamblers of Augua [sic] Caliente more than $4 million in the past 10 months. The Old West in its heyday never saw such gambling as is being done at Augua Caliente these days,” reported The Kokomo Tribune (June 7, 1929).

The end of Prohibition curtailed the throngs of U.S. citizens visiting Mexico for pleasures.

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*A flight or journey to a more desirable or congenial place
**Understanding or knowledge

Sources

1944-1945

In the final year of World War II, three related mandates hampered Nevada’s gambling clubs, but, in general, casinos willingly withstood the hits out of a sense of patriotic duty.

These directives, imposed by the United States’ war mobilization agency, followed a national call for roughly 200,000 more “able-bodied men, willing to do hard work” between the ages of 17 and 35 (Nevada State Journal, Nov. 21, 1944). The requirements, listed chronologically, were:

• In January, all horse and dog racing in the country was to stop immediately, which it did. The federal government initiated this to combat absenteeism, as much as 30 percent, at war plants located near the racetracks.

The casinos offering betting on these sports suffered a decrease in business. Whereas customers no longer could place bets on races at U.S. places like Pimlico, Jamaica, Belmont and Narragansett, they still could get some action at certain local casinos that subscribed to a race track wire service that covered races held in Mexico and Cuba.

• In early February, more than 300 of Nevada’s gambling dealers, bartenders and other non-essential workers were to begin working at plants and industries in Nevada and on the West Coast, which were crucial to the war effort. Consequently, casinos lost key personnel.

• All U.S. entertainment spots were to close at midnight starting on Feb. 26. They included gambling enterprises, bars, night clubs, theaters, sports arenas, dance halls, roadhouses, saloons, bars and the like, public and private. Restaurants that served food only (no alcohol) were exempted. Affected businesses could reopen at 8 a.m.

“The action is the most drastic of its kind yet promulgated in Washington during the present war,” noted the Nevada State Journal (Feb. 20, 1945).

The reason for the midnight closing was to conserve coal, manpower and transportation and help boost morale of active military service members, all of whom had been prohibited from entering or being in those places after midnight. It also was to help reduce the rate of civilian workers employed in critical industries not showing up to work.

Not only did Nevada’s casinos experience a drop in business, but, also, those open around the clock had to lay off their graveyard shift workers.

Relief From The Dictates

The Germans surrendered on May 8, 1945. The following day, the U.S. director of war mobilization immediately abolished the midnight curfew and the ban on horse and dog racing.

Sources

Photo from pond5.com: “American Flag Background” by ozaiachin

Illinois Club, circa 1900

1860s to 1960s

“The loose buckle in the Bible Belt” and “Las Vegas before Las Vegas had water” — these were Hot Springs, as described in the press (Hot Springs, 2013).

This Central Arkansas city boasted illegal, yet wide-open, gambling for about a century, from the late 1860s until the late 1960s, making it the only United States locale with such a history. That run was interrupted three times: around the start of the 20th century, immediately preceding the onset of World War I and between roughly 1946 and 1948.

They heyday of Hot Springs gambling was from 1927 to 1947, during which more than 10 major and many small casinos existed. In 1931, for example, this home of 16,000 people welcomed roughly 15 times as many visitors.

Hot Spot For Gambling, Fun

Hot Springs was hugely popular among the notorious, wealthy and famous. “Millions of people visited the spa city to gamble” despite its remoteness, wrote Robert Raines in Hot Springs.

Along with games of chance and horse races, the recreation destination offered opportunities to soak in hot baths (the city’s name came from its abundant geothermal springs); drink, even during Prohibition, particularly the revered, locally distilled moonshine; golf; watch Major League Baseball spring training games; and use brothel services.

The notorious visitors to this city included a who’s who list of mobsters, most of whom were involved in gambling, and other, enterprises elsewhere. Among them were Joe Adonis, Jimmy “Blue Eyes” Alo, Albert Anastasia, Al “Scarface” Capone (who had his armored 1928 Cadillac shipped there by rail from Chicago to use while vacationing), his brother Ralph Capone, Mickey Cohen, Frank Costello, Sam “Momo” Giancana, Meyer Lansky, Charles “Lucky” Luciano, Owney “The Killer” Madden (who retired in Hot Springs), Bugs Moran, Frank Nitti and Benjamin “Bugsy” Siegel, along with New York and Chicago policy kings Ellsworth “Bumpy” Johnson, Ted Roe, and brothers Edward, George and McKissack Jones. For these men, Hot Springs was a sanctuary of sorts, a place to get away from the stressors and dangers of organized crime, be left alone by rivals and law enforcement and enjoy a true vacation.

The gangsters who flocked to Hot Springs to hide and, sometimes, plan their next crime, many of whom were on the FBI’s Most Wanted list at some point, included Bonnie and Clyde (Bonnie Elizabeth Parker and Clyde Chestnut Barrow), Harvey Bailey, the Barker Gang members, John Dillinger, Charles “Pretty Boy” Floyd, Alvin Karpis, Frank “Jelly” Nash (who was actually arrested by federal agents in the White Front Club there) and George “Baby Face” Nelson.

The influx of mostly law-abiding visitors included Hollywood stars, celebrity athletes, business magnates and politicians. Some of them were: Elizabeth Taylor, Marilyn Monroe, Rudolph Valentino, Jack Dempsey, Rocky Marciano, Babe Ruth, Andrew Carnegie, F.W. Woolworth, Franklin Roosevelt, Harry Truman, Ronald Reagan and John F. Kennedy. Big-name games of chance players, like Nick “The Greek” Dandalos, Amarillo Slim, Murph Harold, Lester “Benny” Binion and Titanic Thompson, also frequented Hot Springs. 

The Gambling Milieu

Primarily locals controlled the gambling, although a few ex-Arkansas mobsters owned interests in some of the enterprises over the years. William “W.S.” or “Bill” Jacobs from Memphis, Tennessee, who owned six clubs there, is recognized as the first gaming impresario of Hot Springs. After Jacobs died, gaming insiders asked New York mobster Frank Costello to take over, but he declined.  Instead, Jack McJunkins succeeded him, and later, H. Dane Harris assumed the role.

Once Owney “The Killer” Madden permanently moved to Hot Springs in 1935, he kept an eye on gambling and ran his own bookmaking/wire service there until his death in 1965. When Sam “Momo” Giancana inquired about buying a piece of the gambling action in the 1960s, he was turned down.

Over the decades, the major places to gamble and the years they opened (when known), included the:

Arkansas Club, Indiana Club, Illinois Club, Kentucky Club, Bridge Club, Arlington Hotel (1874), Southern Club (1893), Ohio Club (1903), Oaklawn Park Race Track (1905), Belvedere Club (1929) and Vapors (1960).

By 1964, only the Southern Club, Vapors and the Arlington Hotel remained as the large gambling spots, along with the race track.

Oaklawn Park Race Track

Despite gambling being illegal, the city charged such operations a tax, the amount depending on their size. When the city needed money, the gambling heads were expected to pay more, which they willingly did to keep running their establishments freely.

Gambling Gets Wiped Out … Mostly

The end of gambling in Hot Springs began with the election of Winthrop Rockefeller (R.), a grandson of John D. Rockefeller, Sr., as the Arkansas governor in 1967. While campaigning, he indicated he’d support a pro-gambling amendment should legislators pass one.

That they did when Rockefeller got into office, but he vetoed the bill. Later that year, he had all gambling eradicated in the city except for horse and dog racing.

For the next 40 years, the Oaklawn Park Race Track was the only legal gambling spot in Hot Springs. That changed in 2005, however, with passage of the state’s Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act, which allows race tracks to offer some electronic, casino-style games. (This has earned them the moniker “racinos.”) Excluding these racino offerings, gambling remains illegal in Arkansas.

Photo of Illinois Club, restored by Steve Sloan

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