Sheriff E. Russell Trathen

1931

In April 1931, the month after the new, liberal gambling law went into effect (March 19), Washoe County Sheriff E. Russell Trathen, per his job description, collected $20,000 (about $330,000 today) in gambling license fees for the month of April from operators in Northern Nevada.

Seeking Piece Of The Pie

First, Trathen went to the Washoe County Commission (WCC) and demanded 6 percent of the total in commission, which amounted to about $720 ($11,800 today). He argued he was entitled to it based on the state’s license tax act of 1915, which afforded sheriffs a 6 percent cut of the proceeds of all business licenses (and 20% of grazing licenses) sold.

The commissioners sought a legal opinion from District Attorney Melvin Jepson, who advised them that according to the law, Trathen wasn’t owed or due any compensation for the collection of license fees. The WCC told the sheriff no.

Next Course Of Action

Trathen then retained Attorney Lester D. Summerfield. In early May, the two filed for a writ of mandamus, which is an order from a superior court to a lower court, government entity, corporation or public entity to take or not take an action, as required by law. Summerfield/Trathen asked the Nevada Supreme Court to order the county treasurer to  accept the license fees Trathen had collected minus 6 percent becuase the treasurer had refused to do so the prior month, April. (Another mandamus action related to the new gambling law was taken earlier in the month in Las Vegas.)

“The case attracted wide interest through the state, as sheriffs of other counties might be able to collect a commission on gambling licenses” the Reno Evening Gazette noted (July 8, 1931).

Not Like The Others

On July 8, 1931, the higher court dismissed the writ of mandamus and issued its ruling, which was unanimous: Nevada sheriffs aren’t authorized to retain any part of the gambling license fees they collect. They said the 1931 gambling act, unlike the 1915 law, lacked a provision for such a commission.

What the new legislation did spell out was that sheriffs were responsible for unpaid fees; they were “held liable on [their] official bond for all moneys due for such licenses remaining uncollected by reason of [their] negligence,” reported the Nevada State Journal (July 9, 1931).

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Photo from Police Motor Units

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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