The Making of Las Vegas: Money, Wall Street, International Drug Traffickers, and the CIA (2001)

The Flamingo initially lost money and Siegel died in a hail of gunfire in Beverly Hills, California in the summer of 1947. Additionally, local police and Clark County Sheriff deputies were notorious for their heavy-handed tactics toward mobsters who "grew too big for their pants." However, many mobsters saw the potential that gambling offered in Las Vegas. From 1952 to 1957, through money and institutional lending provided by the Teamsters Union and some Mormon bankers they built the Sahara, the Sands, the New Frontier, the Royal Nevada, the Showboat, The Riviera, The Fremont, Binion's Horseshoe (which was the Apache Hotel), and finally The Tropicana. Owned and operated by a joint combine of Mormon elders who provided political and business legitimacy and people involved with organized crime who provided unreported income and street muscle, such as Meyer Lansky these crime hotels became regarded as the epitome of gambling entertainment. Even with the general knowledge that some of the owners of these casino resorts had dubious backgrounds, by 1954, over 8 million people were visiting Las Vegas yearly pumping $200 million into casinos. Gambling was no longer the only attraction; the biggest stars of films and music like Elvis Presley, Frank Sinatra, Dean Martin, Andy Williams, Liberace, Bing Crosby, Carol Channing, and others performed in intimate settings. After coming to see these stars, the tourists would resume gambling, and then eat at the gourmet buffets that have become a staple of the casino industry. However, the confluence of various marginal and/or suspected groups such as Jews, Sicilians, and Mormons into the gambling enterprises in Las Vegas and the subsequent cornering of the gambling market in the city by these groups sparked a two-year investigation by Senator Estes Kefauver and his Senate Special Committee to Investigate Crime in Interstate Commerce in 1950--51. The hearing concluded that organized crime money was incontrovertibly tied to the Las Vegas casinos and was becoming the controlling interest in the city thereby earning for the groups vast amounts of income which was strengthening their influence in the country. This led to a proposal by the Senate to institute federal gambling control. Only through the power and influence of Nevada's Senator Pat McCarran did the proposal die in committee. Along with their connections in Hollywood and New York City, these interests in Las Vegas were able to use publicity provided by these media capitals to steer the rapid growth of tourism into Las Vegas thereby dooming Galveston, Texas; Hot Springs, Arkansas; and other illegal gaming centers around the nation. Nevada's legal gaming as well as the paradoxical increased scrutiny by local and federal law enforcement in these other locales during the 1950s made their demise inevitable. While the Strip was booming, the U.S. Atomic Energy Commission on January 27, 1951 detonated the first of over a hundred atmospheric explosions at the Nevada Test Site. These atmospheric tests would continue until enactment of the Partial Test Ban Treaty in 1963 when the tests moved underground. The last test explosion was in 1992. Despite the dangers and risks, greatly underestimated at the time, of radiation exposure from the fallout, Las Vegas advertised the explosions as another tourist attraction and offered Atomic Cocktails in Sky Rooms that offered a great view of the mushroom clouds. The influx of government employees for the Atomic Energy Commission and from the Mormon-controlled Bank of Las Vegas spearheaded by E. Parry Thomas during those years funded the growing boom in casinos. But Las Vegas was doing more than growing casinos. In 1948, McCarran Field was established for commercial air traffic. In 1957 the University of Nevada, Las Vegas was first established, initially as a branch of the University of Nevada, Reno and becoming independent in 1969. In 1959 the Clark County Commission built the Las Vegas Convention Center, which would become a vital part of the area's economy. A new utility company, Southwest Gas expanded into Las Vegas in 1954. http://bit.ly/1u4R50K Image By Lasvegaslover (Own work) [CC-BY-3.0 (http://bit.ly/1sDMsb3)], via Wikimedia Commons