Have you ever asked yourself how Las Vegas got its name “Sin City?”
We are not Sin City because we are globally known as the gambling, fine dining, entertainment, and nightlife center of the world. Not because we are North America’s financial, commercial, and cultural center.
All these things are true, of course. But we got the nickname “Sin City” in the early 30s because mobsters assimilated into the scene and brought with them the crime that became the defining feature of Las Vegas. Prostitution and other shady businesses started to rise in the city, and because most of it was male-focused entertainment, crime rates began to soar, and Vegas became “Sin City.”
Sit back and relax because I’m going to tell you the story of when the Mob controlled Las Vegas.
The Rise of the Mob in the 30s and 40s
The mafia lords were a greedy, violent lot that lived luxurious lives. Most people feared them. They were able to sneak behind good cops and pay off the bad ones. Illegal operations of gambling as well as smuggling arose in Vegas. Although most of the Mob were corrupt and shady, their activities led to Vegas becoming what it is today.
Bugsy Siegel arrived in Vegas in the early 40s, believing the city was ripe for organized crime. Siegel was with his friend, Moe Sedway, and they were financed by Meyer Lanksy, an East Coast gangster. Eventually, they became successful and took over the Strip, Downtown Las Vegas, and El Cortez.
In 1946, Lanksy took over the construction of the Flamingo, the first casino in the Valley, and a swanky resort that drew influence from Hollywood. However, this project faltered. Siegel was later assassinated in his Beverly Hills home in 1947, a crime that remains unsolved.
The New Era of Organized Crime in the 50s and 60s
Between the 40s and 60s, almost every hotel casino in Las Vegas was connected to Lanksy and the Mob. They had illegal operations in many locations, including Minneapolis, Dallas, and Portland. Within this period, casinos along the Strip, such as the Sands, Riviera, New Frontier, and Dunes, came up as a consequence of the funds from organized crime.
The Mob also dominated Teamsters Central States Pension Fund, which,h funded Wall Street Banks. They brought big names like Frank Sinatra and Elvis Presley to perform in the city and funded gambling tables and slot machines.
Casino executives that had ties with organized crime became well-respected. They got away with violent criminal activities, skimming, and money laundering. But the good thing is that businesses were well-managed.
The Turn-Around
As the influence of the Mob became extensive in the Strip, gaming regulators created the Black Book with the names of Mafia members who were banned from casinos. State officials also began to attract legitimate investors as federal officials hunted down mobsters.
In the late 60s, the billionaire Howard Hughes went on a purchasing spree, buying many Mob-connected casinos and hotels that amounted to over $300 million. It was a move that ushered in a new era of corporate conglomerates in Sin City, limiting the interests of the Mob.
The Nevada Legislature enacted the Corporate Gaming Act in 1969 to license key investors and executives to own and operate casinos. In 1971, Anthony Spilotro arrived in the city to take over the Mob’s loansharking and other street rackets. He was the hitman and enforcer for organized criminals. Authorities were soon on him, and in 1986, he faced many charges.
Eventually, the Mob lost its grip on Las Vegas.
Over the next few decades, Sin City became the world’s entertainment mecca. High-rise hotels, casinos, and massive establishments arose, with influences from Venice, Rome, Paris, New York, and many other world-class destinations. The casino, resort, and hotel industry became consistent and the major employer and source of capital in Vegas.
You can learn more about the Mob and its influence in Las Vegas in the Mob Museum.
