The Red Carpet in Biloxi was cheating its craps players by using a “juice joint,” a two-ton electromagnet that controlled metal-containing dice on a game table, in 1965. At the time, Mississippi prohibited all forms of clean, never mind dirty, gambling.

The Federal Bureau of Investigation (FBI) launched an investigation. Agents learned that Harry Bennett, 63, had turned his three-bedroom home into The Red Carpet, which he ran. One room contained two roulette wheels, two blackjack tables and one Beat My Shake table. Another room housed two craps tables. The third room featured slot machines and a bar. The Red Carpet owner of record, however, was Dewey D’Angelo, 39, because Bennett had been under federal indictment in Iowa when he’d started the club.

A Widespread Network

Inquiries about the juice joint led federal investigators to Tulsa, Oklahoma businessman, Jack E. Kress, whose company had manufactured and had sold the contraption to Bennett for $15,000 ($125,000 today). Kress also helped install it in The Red Carpet’s concrete floor. The 1951 Transportation of Gambling Devices Act prohibited the crossing of state lines with any and all gambling equipment via any method (mailing, shipping, vehicle transport, etc).

Kress

Ultimately, as part of its query, which carried over into 1966, the FBI raided multiple illegal Mississippi casinos, in Biloxi, Mississippi City and Jackson, finding various cheating implements — magnets, weighted dice, marked cards and more. Agents also searched Kress’ factory, Kress Manufacturing Co. (see Part I).

Ultimately, the federal law enforcement agency arrested 15 people, including Bennett, D’Angelo and Kress, from Mississippi, Louisiana, Texas, Oklahoma and Nevada.

Agents also collared Wilbur K. Sullivan (aka Pat Sullivan), 56. He owned and operated Christy and Jones Inc., a dice manufacturing firm in Las Vegas, Nevada and competitor of Kress Manufacturing. In 1965, FBI agents confiscated from Christy and Jones misspot dice, weighted dice and company records. Among them, they found evidence that Sullivan had manufactured and had shipped an order of crooked dice in June 1965 to illegal gambling operator, James L. Porter, in Gulfport, Mississippi.

In early April 1966, Sullivan renamed his enterprise to Las Vegas Card Co. and moved it to a different Sin City location. Two months later, he was arrested and sold the business to a former gambling equipment manufacturer.

Conspiracy, Aiding And Abetting

A federal grand jury indicted all 15 suspects on four counts related to illegal gambling. The first count was conspiracy to promote gambling (racketeering) through, one, transportation of a juice joint from Tulsa to Biloxi in a U-Haul trailer and, two, use of the U.S. mail. The second count charged aiding and abetting relative to the conspiracy. The final two counts alleged the use of two checking accounts to house funds collected for gambling debts.

About a month before the trial was to begin in January 1968, Bennett was found murdered outside his Biloxi apartment, having been shot eight times.

The Dice Reveal

The U.S. government reduced the number of defendants in the trial to seven, Kress and D’Angelo included. Sullivan testified on behalf of the government. A total of 56 witnesses took the stand during the eight-day proceeding.

The jury deliberated for four hours and returned an across-the-board guilty verdict. Twenty months later, the appeals court would uphold all of these convictions in its September 1969 ruling.

In the meantime, a federal judge punished Kress with two consecutive sentences: for count one, five years in prison and a $5,000 ($36,000 today) fine, and on count two, a $10,000 ($71,000) fine and five years of probation.

Sullivan, sentenced for the same charges as Kress, received one year in prison followed by five years’ probation.

D’Angelo got three years of prison on count one; two years on count two, the sentences to be served consecutively; and a $3,000 ($21,000) fine on count three.

——————————–

Was this FBI investigation a productive or nonproductive use of time, money and effort? What do you think and why?

Sources

Entrance to Bally’s Las Vegas Hotel & Casino

Today

Bally Manufacturing Corp., at one time decades ago, was heavily involved in the gambling industry. It owned six hotel-casinos in the U.S. It was a major producer of state lottery games and developer of slot and video poker machines.

After its peak, the corporation divested all of its various but its hotel-casino (some still use the Bally name), and changed its name in 1994 to Bally Entertainment Corp. to reflect its single focus.

However, in 1996, Bally sold its casino properties to Hilton Hotels Corp., which, since, sold them, too.

Here’s the current status of former Bally-owned hotel-casinos: 

Louisiana:
Bally’s New Orleans: now closed

Mississippi:
Bally’s Casino Tunica: now 1st Jackpot Casino Tunica, owned by Gaming & Leisure Properties

Nevada:
Bally’s Las Vegas: now Bally’s Las Vegas Hotel & Casino, owned by Eldorado Resorts
Paris Las Vegas: owned by Eldorado Resorts
Bally’s Reno: now Grand Sierra Resort and Casino, owned by the Meruelo Group

New Jersey:
Bally’s Park Place: now Bally’s Atlantic City Hotel & Casino, owned by VICI Properties

Photo from Wikimedia Commons: by Pedro Szekely

1953

On a weeknight in May, Louisiana state policemen surrounded a high-end home in the New Orleans suburbs. One of them knocked on a secret side door that contained a one-way glass window, allowing those inside to see out but not those outside to see in. A man in the house opened the door but slammed it shut once he realized who was there. Using sledgehammers, the troopers penetrated that and another door and entered.

Inside, they saw that much of the residence had been converted into an illegal casino. The living room, dining room and a third, smaller room all contained gambling equipment. A cocktail bar in the basement served guests.

Scattered throughout these areas were about 40 to 50 people, several of whom fled upon seeing the authorities. Three even jumped out of a window.

Operating Clandestinely

In the 1920s, parimutuel horse race betting became the only legalized form of gambling in Louisiana, although many casinos operated out in the open anyway, unlawfully, and this went on for decades. However, many of those enterprises went underground after Senator Estes Kefauver and his fellow committee members, in New Orleans in 1951, held hearings on organized crime. Following that probe, Jefferson Parish Sheriff Frank J. Clancy closed the area’s gambling houses.

One of those shuttered illegal clubs was O’Dwyer’s,* which had been owned and operated by brothers George L. and Rudolph “Rudy” T. O’Dwyer. Previously, the duo had run gambling establishments in New Orleans.

The home where the raid took place belonged to George’s son, Edward L. O’Dwyer.

Too Much Stress?

When she saw the police activity, Edward’s aunt and next-door neighbor telephoned her brother, George, and told him what was happening at his son’s home.

Immediately, George jumped in his car and sped to the scene. While pulling into his sister’s driveway, he suffered a heart attack and died on the spot!

Netting A Jackpot

Meanwhile, from the various gaming rooms in Edward’s home, troopers seized three roulette and three blackjack tables, $1,300 in cash (about $12,000 today) from various strongboxes and four loaded revolvers discovered in a cabinet.

“[It was] the most gambling equipment we’ve gotten on any raid,” Col. Francis Grevemberg said of the haul (The Monroe News-Star, May 27, 1953)

The state policemen released all the players but arrested the five operators, none of whom was an O’Dwyer, on illegal gambling charges. It’s unknown what happened to these men subsequently.

————————–

* O’Dwyer’s, open from 1949 to 1951, was located at 100 Jefferson Highway, New Orleans. It’s now a Salvation Army store.

Sources

1950

For Hollywood’s Academy Awards, Las Vegas, Nevada casinos offered even money on All The King’s Men, the favorite for Best Movie. The other nominees and their odds were Battleground, 5 to 2; The Heiress, 9 to 2; and Twelve O’Clock High, 10 to 1.

In fact, Sin City had it right; the Oscar for Best Movie went to All The King’s Men, a story loosely based on the career of Huey Long, former Louisiana governor who, for one, allowed mobsters to run illegal gambling freely in the state in exchange for payoffs. (A remake of the film came out in 2006.)