The main street in Elko, Nevada, 1940

1934

After hiding somewhere in the building, a person robbed the Bank Club casino’s safe of $500 in silver change (about $9,000 today) between 4 and 6 p.m. on a Wednesday in early December.

This particular Bank Club — a common name for Nevada gambling houses — was located in the town of Elko. The money belonged to Phil Heidt, who ran the club’s gaming.

Photo: by Arthur Rothstein

Commercial Hotel, Elko, Nevada in the 1920s

1925

Newton “Newt” Crumley, Sr., Goldfield, Nevada resident, met with William Doyle in September to discuss purchasing from him the Commercial Hotel in Elko, but they couldn’t agree on a price. Doyle wanted $5,000 more than what Crumley wanted to pay. No deal was done.

A month later, they reconnoitered and, still haggling, flipped a coin over the difference.

It’s unknown who won the toss, but Crumley bought the property for $70,000 (about $960,000 today).

Cactus Pete’s casino in Jackpot, Nevada in 1960

1960

When one rural Nevada town grew into a gambling hot spot in the mid-1900s, the gamblers in another loudly grumbled.

Soon after Idaho outlawed slot machines, its last vestige of legal gambling, the sagebrush- and broomgrass-covered land 47 miles south of Twin Falls, just across the border, began to evolve into a small community — Jackpot. It grew to consist of about 125 trailers (no houses), two motels, a grocery store and a beauty shop.

Development started in 1954 with the debut of the Horshu Club. The 93, Cactus Pete’s, Tex’s Gateway and Diamond Jim’s then followed. Together, these casinos offered 320 slot machines, four pits of 21, roulette and dice tables, keno and wheels of fortune along with free meals and stage entertainment.

By 1960, the town’s five gambling houses drew thousands of players per year,* many from nearby Idaho Falls. To capitalize on that city’s pool of players, Jackpot’s gamblers provided free nightly, round-trip transportation by bus.

Gamblers Protest About, Well, Other Gamblers

Rival casino owners in Elko, which officially became a city in 1917, claimed the Jackpot clubs were exploiting Twin Falls’ economy. They predicted law enforcement and public service problems would arise in Jackpot and warned the end result would be Twin Falls business owners lobbying for a federal gambling ban.

“Frankly, the Elko gamblers don’t like the competition — they are 115 miles farther from the Idaho line,” wrote the Oakland Tribune (Nov. 13, 1960).

The state’s gaming regulators noted the complaints and thought they might be valid in part. They wondered if casinos in the rural border regions might harm the industry overall, particularly because those places were difficult for them to oversee and because of the payoff scandal involving a gambling watchdog in the rural town of Wells that had occurred earlier in the decade.

The Nevada Gaming Control Board launched an investigation, and in November 1960, conducted a survey of Twin Falls residents about their attitude toward gambling in Jackpot. It revealed that 18 percent favored it, 30 percent opposed it and 53 percent were neutral.

Were Nevada’s gaming agencies to forbid gambling in Jackpot, it would set a dangerous precedent, said the attorney for the community, Leo Puccinelli.

“Nevada gambling was built by competition and it will be in trouble if the established clubs can win monopolies with legislation,” he added. “After all, the major part of Nevada gambling is on a border basis. Only Elko is in central Nevada, while Reno and Lake Tahoe cater to Northern California and Las Vegas to Southern California” (Oakland Tribune, Sept. 16, 1960).

Jackpot’s gamblers remained mum on the issue, hoping it would go away … which eventually it did, leaving them to continue running their casinos without impediment by the state.

*Total gaming revenue from Elko County, including Elko and Jackpot, then was between $4 and $5 million ($32.5 and $40.7 million today) per year.

Sources

1966

Suddenly, in the fall, the Nevada Gaming Commission (NGC) directed 41-plus casinos to cease operation of specific electronic blackjack machines because they were “experiencing difficulties when played so as to render the devices more liable to win or lose” (Nevada State Journal, Oct. 21, 1966).

These 101 devices, available in gambling rooms in Las Vegas, Reno, Lake Tahoe, Carson City, Elko, Wells and Hawthorne and manufactured by Nevada Electronics, Inc., played like a slot machine with no dealer and were popular.

Because the NGC wouldn’t say more, mystery surrounded the issue. All, however, was revealed shortly.

Sneaky Tricks

It turned out these particular blackjack machines disfavored the player more than the hand-dealt version. This was because these electronic versions removed a card worth 10 points from the deck in play. This trick results in fewer blackjacks and boosts the casino’s edge by about half a percent, which doesn’t sound significant but is.

“Removing 10-value cards from play, whether by design of the game or by malfunction, requires some powerful, positive rules to make up for the impact it has on the odds of the game. If there really are 10-value cards missing from a deck in a regular blackjack game, you don’t want to play,” said gaming expert, John Grochowski (grochowski.casinocitytimes.com, Oct. 26, 2010).

Signs on the devices identified them as automatic blackjack games, thereby deceiving players into thinking they offered odds that were equivalent to games with a human dealer — which some blackjack machines actually did.

The suspect ones, however, did disclose, at the bottom of the game’s instructions, the 10-value card removal.

To satisfy the NGC, the distributor of the machines eliminated the automatic blackjack demarcation and replaced the instruction plates with ones where the card removal warning appeared at the top.

Once that was completed, about a month later, the gambling regulatory agency lifted the suspension.

Sources