1936-1950s

The Palace Club introduced a new casino game to Nevada’s “Biggest Little City” on May 1, 1936. Renoites quickly discovered it, and its popularity soared, leading to a solid run over about a decade.

The emergence of this enticing gambling offering was “a major event in the development of Reno’s gaming,” Raymond Sawyer wrote in Reno, Where the Gamblers Go!“

It was race horse keno.

The game essentially was keno or Chinese lottery but with horse names instead of numbers or Chinese characters. The equine monikers — Shot Gun, Red Fox, Mixed Party, Wedding Ring, Rustic Lady and Fussbudget, for example — were entertaining.

To start, the Palace Club conducted the game every 30 minutes versus the then typical twice daily keno schedule. The announcing of the events was exciting, like actual horse races at a track. According to Sawyer, they went something like this:

“All right folks, they’re at the post! And they’re off on race number 57; the first one out is Jockey Number 16 on Main Street right down the main drag. A hell of a race and a hell of a bunch of horses! Next is Jockey Number 60 on Kay Dugan, that old Irish gal again. Next is Number 50 on Bally Boy, that bloody English horse. And next out is Number 8, on Ask Kate. I did — and nothing happened!”

How It Got To Reno

Palace Club pit boss, Frances Lyden, had seen race horse keno played in Montana and proposed to his boss, casino owner John Petricciani, that they debut it in Reno. He agreed.  

Lyden telephoned Warren Nelson, 23, whom he’d seen run the game in Great Falls, and asked if he’d be willing to start up and operate race horse keno at the Palace Club with a few experienced men of his choosing.

In late April, Nelson, arrived, with a crew — Jim Brady, Clyde Bittner and Dick Trinastich — and immediately got to work preparing and then launched the game.

At first, the Place Club generated about $200 to $300 (about $3,700 to $5,600 today) per day from race horse keno, selling each ticket for $0.10 ($1.80).

And They’re Off …

In its newspaper advertisements, the Palace Club described race horse keno as “the game that has taken Reno by storm.” The claim was true.

“It didn’t take long, not more than a week or so, for the new game to catch on,” Sawyer wrote.

Over time, at the Palace Club, Nelson began holding the “races” more often, first changing it to every half hour, then every 20 minutes and finally, every 10.

Eventually, $0.35 tickets replaced the $0.10 ones as the most common, $0.35 ($6.50) ones became most popular. Some players bought $0.50 or $1 tickets ($9.40 or $18.80).

“Soon we were writing $1,500 to $2,000 [$28,000 to $37,000] a day, and by the end of summer we were writing $5,000 [$93,000] a day,” Nelson said in Always Bet on the Butcher.

Competition Springs Up

Also starting in 1936, and over the ensuing years, other gambling places got in on the action, offering race horse keno themselves. Those gambling houses were the Wine House, Block N and Harolds Club in Reno; the Index Club in Winnemucca; Jill and Eddie’s in Fallon; and the Nevada Club in Stateline, to name a few.

When the Bank Club, the Palace Club’s nemesis, followed suit, the latter raised its game win maximum to $5,000 from $2,000. Later, Reno’s Frontier Club debuted its game with a $25,000 limit ($400,000), and that drew even more players.

In Southern Nevada, the first club received a gambling license for race horse keno in late 1939. There, the Las Vegas Club and the Boulder Club adopted the game early on.

Retiring The Game

Race horse keno in Nevada began fading out in the late 1940s and early 1950s.

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Sources

1958-1959

(Part I ran last week.)

The Nevada Tax Commission withdrew the gambling license of the New Star casino’s operators — Brent Mackie and Kenneth Henton — in July 1958 after investigators allegedly witnessed 21 dealers cheating customers in eight different ways at the Winnemucca casino.

Later that month, defense attorney Thomas Foley of Las Vegas, petitioned the district court to review the tax commission’s license revocation order on the grounds that it was “capricious and arbitrary” (Reno Evening Gazette, July 29, 1958). District Judge Merwyn H. Brown ordered the agency to defend its action.

Bias Alleged

However, Brown was automatically disqualified from hearing the case. This was due to Nevada Gaming Control Board (NGCB) member, William Sinnott, alleging via an affidavit that Brown, also of Winnemucca, possibly was biased against the tax commission as he’d ruled on the side of the Thunderbird Hotel in Las Vegas when its gambling license was in contention. 

The commission also was concerned Brown had become too close to Mackie and Henton when they’d owned the Mint Club casino in town previously.

“I’ve been booted off the case for an asinine reason,” Brown said (Reno Evening Gazette, July 30, 1958). “Frank Petersen [NGCB’s counsel] called and said he felt I was disqualified because a lady who has been my neighbor for 30 years owns a half interest in the building in which the New Star casino is located. I told Petersen that if that reason is valid, I can’t sit on any case because I have had friends here for 50 years.”

Legal Sparring Ensues

In August, District Judge John F. Sexton of Battle Mountain, Brown’s replacement, stated the license revocation was too strict, and as such, he lessened the penalty to closure of only the 21 game for 60 days and covering of the dice table for 30 days with time served taken into account. Mackie and Henton still could operate the slot machines.

Petersen, attorney for the gaming regulators, called the alteration “improper and prejudicial,” pointing out that Sexton must have determined cheating had taken place or he would’ve reversed the revocation (Nevada State Journal, Dec. 11, 1958).

“Sexton’s modification decision was another milestone in the evolution of Nevada’s thorny problem in policing the state’s multimillion-dollar legalized gambling industry,” noted the Nevada State Journal (Aug. 9, 1958).

Petersen appealed to the Nevada Supreme Court. In mid-August, that court sided with the tax commission, granted its motion to stay Sexton’s order, or in other words, reinstated the license revocation and casino closure.

One Last Tack

Mackie and Henton, however, continued to fight. Foley asked the high court to dismiss the tax commission’s appeal of the district court decision that eased the revocation order and, instead, to allow a motion for re-hearing of the testimony in the lower court.

That effort, too, was unsuccessful as the Nevada Supreme Court in September said it, not the district courts, was the final arbiter on appeals concerning state gambling regulation orders.

Foley again appealed to the higher court, the second time asking the revocation be overturned because evidence had been lacking and insufficient for the penalty to be imposed initially.

In court in December, the justices asked Petersen how the tax commission could function in a judicial capacity when there was a dispute over which witness to believe and the commission itself had not observed the witnesses. (Before 1955, the tax commission directly heard all hearing testimony but that duty was transferred to the NGCB when the legislature created the entity that year).

Petersen replied that the commission has the record of the gaming board hearing and determines the weight and credibility to be accorded to the various accounts.

Out Of Gas

In January 1959, the Nevada Supreme Court found that Sexton’s order to reduce the penalty was administrative rather than judicial. It also determined a reasonable cause for the revocation had existed. The final ruling was that Mackie and Henton’s gambling license for New Star would remain cancelled for the requisite year, and it was.

Gambling At New Star Revived

That didn’t mean a different party couldn’t obtain a license and run the gambling at New Star. In fact, that’s what happened.

In February, the tax commission granted a gambling license to Sumner and Doris Kirkby to operate 20 slot machines at the club. The next month, it approved Roland I. Benum of Las Vegas to run blackjack and dice games there, too, with a $25 table limit, a restriction that in July was removed.

In December 1960, Harold Larraguetta invested $40,729 in and assumed control of the entire casino operation, which he ran for four years.

Sources

Photo from freeimages.com: by Steve Roberts

New Star (restaurant, casino, bar), Winnemucca, Nevada, 1960s

1958

Casino workers at the New Star allegedly were caught in flagrante delicto.

In April, a gambling detective — Michael MacDougall from New York — conducted a statewide, in-person survey of various gambling entities upon the request of Robbins Cahill, head of the Nevada Tax Commission, the state’s gambling regulatory agency at the time.

MacDougall spotted dealers cheating during games of 21 (blackjack) on two different days at the Winnemucca gambling house. In May, Fred Galster, an agent for the Nevada Gaming Control Board (NGCB), which investigated all cheating complaints, played the game at New Star for hours, and he, too, noticed the same deceitful activity.  

Array Of Infractions

The two witnesses observed the dealers employing the following cheating methods

• dealing seconds = dealing the second card in the deck

• turning the deck = turning a card over and dealing from the deck bottom

• one hand bottom = taking a card from the deck bottom to give the dealer 21

• copping the cut = picking up the cards in the same way they’re cut

• hi-low stack = picking up discards in such an order that the dealer gets two high cards and the player gets one high and one low card

• dealer’s stack = picking up discards in such an order that the dealer gets 21

• bubble peeking = bending the top card slightly to glance at it

• bridge = bending a card so players unconsciously cut at that card

• false shuffle = passing cards through a shuffle without rearranging their position

During the 1950s, Nevada gaming authorities cracked down on cheaters, typically revoking the gambling licenses of the casino operators, thereby closing their establishments for a year.

This was to portray to outsiders, federal lawmakers in particular, that the industry in The Silver State was honest and clean. One might argue they were extra vigilant during 1958 because Robert F. Kennedy was working diligently and blatantly to eradicate racketeering throughout the U.S., and gaming was an obvious place to root out such underworld activity.

Defense Offered

The NGCB ordered New Star casino’s operators — Brent Mackie and Kenneth Henton — to appear at a hearing to show cause why their gambling license should be maintained.

At the proceeding — during which MacDougall, Galster and numerous other people testified — New Star’s defense attorney, Thomas Foley of Las Vegas, denied his clients were guilty and asserted the NGCB had failed to prove the cheating charges. The primary defense was that MacDougall’s findings weren’t credible and, therefore, he wasn’t either. Foley argued MacDougall  had:

• Identified one of the allegedly cheating dealers by physical description but that man hadn’t worked then

• Testified that a certain allegedly cheating dealer was right-handed when in fact the dealer at the time was left-handed

Despite the discrepancies, though, the tax commission pulled Mackie and Henton’s gambling license in July, closing New Star’s casino.

But this isn’t the story’s end. Check back next Wednesday for the finale.

Sources

1962

The City of Winnemucca in Nevada had an ordinance that prohibited women from working in a casino in which they had some ownership. Bea Hawkins, who with her husband Don, owned the Ferris Hotel and Casino,* asked the city council members to amend the ordinance on the grounds it was unconstitutional. They refused.

She defied the law and worked for three days at the Ferris, at which time the council shut down her casino and didn’t renew her gambling license.

She threatened to sue the governing body.

It’s unclear how, but the parties came to this agreement: The council would reinstate her permit but she had to stop tending bar and dealing cards at the Ferris.

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* The Ferris was located at 229 Bridge St.

1947

The Sonoma Inn hotel-casino debuted on May 27, 1947 at 185 W. Winnemucca Boulevard in Winnemucca in Northwestern Nevada, about halfway between Reno and Wells, likely named after the nearby Sonoma Range mountains. In 1969, the property was remodeled and renamed the Winners Inn and Casino, which is open still today.

Ad from the Nevada State Journal dated May 25, 1947
Photo from the University of Nevada, Reno’s Special Collections