During Nevada’s 1957 legislature, State Senator Kenneth Johnson (R-Ormsby), voiced his concerns about some of the state’s gambling licensees* simultaneously co-owning Cuban casinos.

He feared that:

• Nevada licensees might form alliances with U.S. mobsters in Havana, who primarily ran gambling there

• Nevada licensees might use those relationships to hide mob interests in their Silver State gambling enterprises

• U.S. lawmakers might grow intolerable of the political ties between Nevada licensees/their agents and the Cuban government

• U.S. lawmakers might, therefore, pass a law that eradicates legal gambling in Nevada

“I don’t like to see them use the stamp of respectability given them by Nevada as a magic wand to go into similar business ventures in other part of the world,” Johnson said (Reno Evening Gazette, Jan. 26, 1957). “From now on I’m going to dedicate my efforts to protecting Nevada’s gambling monopoly.”

Johnson, therefore, was tasked with studying the effects on the state of its licensees being involved in Cuban gambling.

Potential Stain On Nevada

Before he could report his findings as planned, prior to the next (1959) legislative session, events took place that forced Nevada’s gaming regulators to take a stand immediately.

In December 1957, Albert Anastasia was murdered. He’d been a boss of the Giambino crime family and head of Murder, Inc., the Mafia’s enforcement branch that was founded by notorious, New York mobster Meyer Lansky, who also was an associate of Charles “Lucky” Luciano.

New York police were investigating the angle that mobsters involved in Cuba’s gambling industry, Lansky in particular, had Anastasia whacked because he’d tried to horn in on that territory.

Cuba Gambing Exposé

In March 1958, LIFE magazine published an article, “Mobsters Move in on Troubled Havana and Split Rich Gambling Profits with Batista.” The subtitle was, “Old Familiar Faces from Las Vegas Show Up in Plush New Casinos with Plenty of Fast ‘Action’ to take Tourist Dollars.”

Of the surreptitiously taken photos in the piece, one depicted Meyer Lansky and a woman leaving the Riviera casino. The description noted that he carried a “satchel reported to have contained $200,000 from cashier’s office” and went on to state, “Lansky was returning to U.S., where he was picked up for questioning in the Anastasia murder case.”

Meyer Lansky, known as the mob’s accountant, had gambling interests from coast to coast in the United States and had been a key player in the Mafia’s development of Las Vegas. Another image showed Meyer’s brother, Jake Lansky, in Cuba’s Nacional casino.

Spotlight On Silver State

The LIFE article stated Nevada’s casino industry was spotless: “Ever since the Nevada boom hit full stride in the ’40s, the gambling mob has been ‘legit,’ shunning the back streets and peepholes, running scrupulously honest tables, keeping books and paying income taxes.” (This was partially valid.)

The piece, though, also revealed that some Silver State licensees were entangled with major mobsters in Cuba, where the industry wasn’t so clean. (This was true.)

The Lanskys managed Cuba’s Nacional casino while owner Wilbur Clark, co-owner of the Desert Inn in Las Vegas, was the front man and three other Desert Inn shareholders were investors. Meyer also owned a piece of the action at the Havana Riviera casino with three Nevadans tied to the Sands and the Fremont hotel-casinos in Sin City.  

The other Nevada gaming licensee involved in Cuban gambling was Clifford Jones, the co-owner of the Thunderbird Hotel in Las Vegas, who owned a percent interest in the Havana Hilton casino.

“Nevada, which has already been and is under fire, cannot stand idly by when licensees participate in activities which in any way bring notoriety or discredit to the state,” the Nevada Gaming Control Board (NGCB) wrote in a report (Reno Evening Gazette, April 25, 1958).

The rumor in Cuba then was that the all-powerful in Las Vegas orchestrated the LIFE exposé and were supporting Fidel Castro to collapse Havana gambling. Many Nevada gamblers didn’t like the industry’s booming success in the island nation where the swanky hotels and casinos were larger than any in Las Vegas.

In Or Out?

The LIFE article spurred the Silver State’s gambling regulators to act. In April, they demanded that the eight licensees with financial interests in Cuban casinos choose Nevada or Cuba, as they no longer could operate in both places.

All of the gamblers selected Nevada and claimed they’d divest their Cuban holdings but noted it might take some time.

A new Nevada regulation followed that bars all state gambling licensees from engaging in casino operations in any other state or nation.

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* Gambling licensees and/or casino owners or operators are referred to as gamblers

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Photo from the University of Miami Libraries’ Digital Collections

When Fulgencio Batista returned to power as president in Cuba in 1952, he aimed to foster a gambling empire from which he could generate revenue for his coffers. To facilitate casino development, he and his administration:

• Restricted gambling licenses to hotels or nightclubs worth $1 million or more

• Waived taxes, which were as high as 70%, on all building materials imported for new hotels

• Deemed all casino pit bosses, stickmen and dealers to be skilled technicians, so they’d qualify for entry into Cuba under two-year visas versus the typical six-month ones afforded to incoming workmen

• Subsidized construction costs of new hotels

Government-backed banks provided $6 million of the $14 million to construct the Havana Riviera, for instance. The pension fund of the Catering Workers Union of Cuba provided most of the $24 million for the Havana Hilton. Casino operators typically leased space for their operations from the hotel owners; a rate of $1 million per year was typical.

Consequently, lavish hotel and casino construction boomed, as did the gambling business. Cuba became what Mexico had been during Prohibition — a playground for wealthy Americans.

“Havana’s casinos are elegant salons with expensive chandeliers, brocade draperies and a mink-stole clientele … At the roulette tables the smallest chips are a quarter. At the craps tables they are a dollar — but nobody who really amounts to anybody thinks of betting less than a $5 chip,” described LIFE magazine (March 10, 1958).

Government taxes on the new casinos “were set ridiculously low: $25,000 for a license plus 20 percent of the profits,” LIFE reported. While this was the official cost, the true under-the-table fee was $250,000. “And no one has even tried to guess how big a cut the politicians demand at the end of the month.”

Further, Batista’s brother-in-law, Roberto Fernandez y Miranda, had a monopoly on the country’s slot machines from which he collected half the profits.

Las Vegas Gamblers Want In

Despite the corruption in Cuba (or perhaps because of it), eight Nevada licensees perceived an opportunity to make money by capitalizing on Havana’s gambling trend and dropped at least $400,000 into casinos there.

• Owner Wilbur Clark and associates, Thomas McGinty, Moe Dalitz and Morris Kleinmann, of the Desert Inn in Las Vegas leased space adjoining the Hotel Nacional de Cuba in which they opened and operated a $1 million casino called Wilbur Clark’s Casino International.

• Hy Abrams, owner, and Benjamin “Bugsy” Siegel, investor, in the Sands in Las Vegas, and Jack Davis, investor in the Fremont hotel-casino in Las Vegas held a share of the Havana Riviera casino.

• Clifford Jones, co-owner of the Thunderbird hotel in Las Vegas, owned an interest in the Havana Hilton’s casino.

For these men, their investments were ultra-high risk and tenuous, as government depravity was rampant and political strife was high in Cuba.

“For the gamblers, the one completely unknown factor is the position of Batista himself,” LIFE noted. “If he fell from power, the gambling mob would have to make a whole new set of deals with a different bunch of politicians. The gambling trade might slow down.”

Sources

Las Vegas Strip (in red) runs through Winchester, Paradise

1950-Today

When people are on the Las Vegas Strip, they’re really in Paradise — the town, that is.

In 1950, a rumor surfaced that the City of Las Vegas’ boundaries would be expanded to include the then multimillion-dollar luxury resort area on South Las Vegas Boulevard. Disliking the idea, the proprietors of the hotel-casinos there collectively strategized to get the area in which their properties sat deemed an unincorporated town. That status would prevent the city from annexing it without the owners’ unanimous approval.

Money was the primary reason the Strip businesses opposed incorporation into Vegas. Costs — gambling and liquor license fees and taxes, for instance — within the city were higher than outside, specifically a tax rate of $5 per hundred dollars’ valuation versus $3.48.

In December the Clark County commissioners approved designation of a one-mile wide and four-mile long stretch as the unincorporated town of Paradise, said to be named after the Pair-O-Dice, a club whose property eventually became the Last Frontier.

These men comprised the newly formed, required town board:

• Gus Greenbaum / Flamingo: manager and associate of Meyer Lansky and Benjamin “Bugsy” Siegel (Greenbaum was Paradise’s board chairman)

• William J. Moore, Jr. / Last Frontier: developer, executive director and vice president

• Wilbur Clark / Desert Inn: front man for Cleveland mobster Moe Dalitz, the principal owner

• Marion Hicks / Thunderbird: architect and manager

• Beldon Katleman / El Rancho Vegas: owner

A major change for the properties in the new township was the lack of access to city services, including sewage disposal and fire protection services. Also, half of all gambling fees collected in Paradise had to be spent on public improvements within the town as opposed to throughout the county, as was the case before.

“What is good for the valley is good for the Strip. We hope this move will bring you better roads, better schools and better everything,” Greenbaum said at a town meeting.

In early 1951, property owners in Paradise Valley, the southern part of the Las Vegas Valley, sought and received approval to annex their unattached land to the newly established Paradise. This expanded the area to 54 square miles.

Paradise Divided

Later, out of the northern portion of Paradise, a second township was created, 7.5 square miles, that became known as Town A. The larger, remaining portion of the original unincorporated Paradise became Town B.

Eventually Towns A and B received official names.

In 1953, Town A was named Winchester. At the time, it encompassed the Sahara, El Rancho Vegas and Thunderbird hotel-casinos on the Strip’s northern end, as well as Last Frontier Village, the Las Vegas Park Race Track, numerous motels and some private homes. The Town A residents liked the name Winchester for its Western flavor and chose it over other suggested monikers, including McCarran, Sunset Heights, Empire, Silverado, Tiffany and Valhalla.

“In addition to getting a new name, the town figures to be one of the richest per capita in the world, since it covers practically all of the multi-million-dollar resort hotel industry, plus several costly motels and the expectation that another $20 million in new hotels will be erected in the near future,” reported the Reno Evening Gazette (Oct. 8, 1953).

Town B recaptured the original name, Paradise. Much larger in land size, it included the Desert Inn, Sands and Flamingo hotel-casinos on the Strip’s southern end and the Paradise Valley ranch area.

Attempt At Unification

In 1975, Governor Mike O’Callaghan signed Senate Bill 601, which would’ve doubled the size of Las Vegas by expanding its boundaries to include the Strip (Winchester and Paradise), Sunrise Manor and East Las Vegas — all unincorporated towns. The goal was to consolidate the various city and county governments and services.

However, before the change could be carried out, the Nevada Supreme Court, in June 1976, ruled that the legislation was unconstitutional for various reasons. One was because the law was passed during a special session, which is illegal per the Nevada Revised Statutes.

“I think that ends it for good,” said Senator James Gibson (D-Henderson), who’d introduced the bill. “It will probably kill [a] merger for quite a while in the future” (Las Vegas Sun, June 8, 1976).

Though relatively unknown except to locals, Paradise and Winchester still exist today, independent of Las Vegas.

Sources

1950

The $1.6 million Desert Inn resort had just opened in Las Vegas, and a gambling naif nearly put it out of business. A 22-year-old sailor, who didn’t know much about gambling, bet $1 on craps and had a run of 27 straight passes. During it, the people around him started winning, too.

“There was pandemonium. People were screaming and yelling. Those in the back were offering up to $500 (about $5,000 today) for a place to stand at the table so that they could get their money down,” Wilbur Clark, front man for the Cleveland’s Mayfield Road Gang and mobster Moe Dalitz, told the press 12 years later.

The hot streak cost the casino $260,000 of its $300,000 ($2.6 of $3 million today) bank.

Interior of the Bonanza Club in Reno, Nevada

1944

The debut of the Bonanza Club* on October 3, 1944 in Reno, Nevada, was doubly significant. Formerly the Barn Club, the new casino was regarded as one of, if not, the finest in the state; about $300,000 (roughly $4.2 million today) were spent on redecorating and equipping the place. It also was one of the first gambling houses in The Biggest Little City to have been funded and run by ex-Nevada mobsters.

Underworld Involvement

Financing to redo the property was provided allegedly by Moe Dalitz, Detroit mobster, and Frank “The Prime Minister” Costello, boss of New York’s Luciano (later Genovese) crime family. Their straw man, Wilbur Clark, who’d purchased and fronted the El Rancho Vegas in Las Vegas (1941) for Costello and mobster Meyer Lansky, bought the Bonanza Club in 1944 and ran it for only months. He would move on to open the Monte Carlo club in Las Vegas (1945), the Desert Inn, also in Vegas (1950), and the Tropicana casino and the International Casino, both in the 1950s in Havana, Cuba.

Mobster Louis “Lou” Wertheimer** officially took Clark’s place at the Bonanza Club the same year it opened. A former member of the Chesterfield Syndicate in Detroit, Michigan, he had numerous past arrests and gambling experience running casinos in home town Cheboygan and Detroit, Michigan; Cleveland, Ohio; and West Hollywood and Palm Springs, California. Wertheimer would sell his ownership in the Bonanza in advance and move to operating the Mapes casino when it debuted in December 1947.

A Look Inside

The elaborate Bonanza Club boasted a gaming section with two roulette, two craps, three 21 and one Big Six games along with 24 slot machines. It also contained a 58-foot bar with a full length mirror. In the 100-person dining room, lunch and dinner were served, and entertainment featured a two-piano ensemble or a violin-piano duo.

October 10, 1944 newspaper ad

Tom Douglas of California — designer of Ciro’s and LaRue’s, well-known Hollywood nightclubs — followed an 1890s theme to embellish the Bonanza Club’s interior and exterior. Inside, the walls and carpet boasted a “bonanza red” color, contrasted by the white ceiling frescoes. Lace curtains, gilded lamp fixtures from San Francisco’s Barbary Coast and plate-glass mirrors in heavy gilded frames further adorned the space.

“The most striking attribute of the Gay-Nineties motif club were the wall fixtures, eight-foot tall nude ladies who appeared to be holding the ceiling in place,” wrote Al W. Moe, in his Nevada Casino History blog. These busty figurines were custom made by a Beverly Hills firm, “which employed live girls to model and from whom were cast the delightful likenesses, completely charming as well as stunning, wrote Raymond Sawyer in Reno, Where the Gamblers Go!

The Architect

The club was built by Thomas E. Hull, the mobster-affiliated owner of Hull Hotels, which operated hotels it constructed, including the El Rancho in Las Vegas (until Clark and Detroit mobsters took over) and numerous non-gaming ones in California.

Initially, Hull, his sister Eunice Lewis and Larry Tripp co-owned the Bonanza Club. Tripp previously had helped open the El Rancho and, also in Southern Nevada, the Last Frontier Hotel (1942).

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* The Bonanza Club was located at 207 N. Center Street, Reno. The property today is part of Harrah’s Reno Hotel and Casino.

** Lou’s eldest brother, Myrton “Mert”  Wertheimer, ran the gambling at the Riverside Hotel starting in 1949 and bought, with a co-investor, the entire property from George Wingfield in 1955.

Photo from the University of Nevada, Reno’s Digital Collections

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