Mob Control of Major Las Vegas Casinos

1) Flamingo Hotel & Casino

The Mob first controlled casinos in the Downtown area along Fremont Street. Bugsy Siegel and Moe Sedway set up shop at the Las Vegas Club. They managed the race wire and operations at the Golden Nugget. Then they purchased the El Cortez with partners Gus Greenbaum, Davie Berman, and “Icepick” Willie Alderman. Lucky Luciano got a cut. Partner Meyer Lansky also got a cut. He handled the skim through bag men to Chicago, Minneapolis, and New York. Lansky remained a prime mover and money handler for decades.

Next came deals with Wilbur Clark as a deal maker/front at the Hotel Last Frontier and the El Rancho. Then came a partnership with Billy Wilkerson. They took over his stalled casino, which became the Flamingo.

Mob Influence:

1945–1967 (strongest: 1945–early 1950s)

Key Figures:

• Benjamin ‘Bugsy’ Siegel

• Frank Costello

• Meyer Lansky

Benny Binion’s role may have been a simple courtesy to the Chicago Outfit. Think of cash. It marked his transformation from a Texas outlaw gaming operator to an accepted Las Vegas casino owner. The lines are seriously blurred.

Structure:

• Financed by East Coast syndicate capital.

• Post-Siegel (1947), reorganized under tighter financial control.

• Revenue distribution among New York and other families.

Lansky’s Role:

• Financial architect and syndicate liaison.

• Oversight of investment recovery after Siegel’s murder.

• Helped shift to structured skimming and disciplined reporting control.

Lansky’s Brother’s Roles:

The Thunderbird Casino fell into financial distress on its first night of operations (1948). Meyer gained access to the cash boxes. He appointed his brother Jake to manage the property. Jake also managed the Sahara in the 1950s. Third brother Joseph managed the Nacional Hotel in Havana for the Mob under his brother’s direction.

The El Cortez

And of course, there is the El Cortez, the first Mob-controlled casino in Las Vegas, but it’s important to point out that the El Cortez was already built and successful when Bugsy Siegel and his group bought the property in Downtown.

2) Desert Inn

Mob Influence:

1950–1967 (declined after Hughes purchase in 1967)

Key Figures:

• Wilbur Clark (front man)

• Moe Dalitz

• Meyer Lansky (syndicate-linked)

Structure:

• Cleveland syndicate-backed.

• Clark was the public face; hidden ownership interests behind the scenes.

Lansky’s Role:

• Indirect financial coordination through syndicate channels.

• Beneficiary of profit-sharing structures common among National Crime Syndicate investors.

3) Sands Hotel

Mob Influence:

1952–1967

Key Figures:

• Moe Dalitz

• Gus Greenbaum

• Lansky (syndicate-level participation)

Structure:

• Cleveland syndicate control.

• Known revenue skimming operations in early years.

Lansky’s Role:

• Not day-to-day.

• Syndicate investor network participant.

• Assisted in coordinating inter-family profit splits.

4) Stardust Resort and Casino

Mob Influence:

1958–1983 (major skim prosecutions in 1970s–80s)

• Moe Dalitz

• Allen Glick

• Chicago Outfit leadership

• Kansas City mob

Structure:

• Financed via Teamsters Central States Pension Fund.

• One of the largest documented skimming operations in Vegas history.

Lansky’s Role:

• Early structural influence.

• Not directly involved in later 1970s skim prosecutions.

• His financial model of pre-count skim distribution became the template.

5) Tropicana Las Vegas

Mob Influence:

1957–1979 (skimming prosecutions late 1970s)

The 1950s were a wonderful time for crime families all over the country. Ben Jaffe’s money mostly built the resort. He owned the Fontainebleau in Miami Beach, close to Meyer Lansky’s home. At first, it was a Luciano family operation in New York. When boss Frank Costello was shot by Vincent “The Chin” Gigante of the Genovese crime family, the world found out Las Vegas might have ties to New York, because Costello had the previous day’s win total on a paper in his pocket.

That note stated: “Gross casino wins as of 4-26-57. $651,284. Casino wins less markers $434,595.00. Slot wins $62,844,” followed by a list of amounts paid to “Mike,” “Jake,” “L.” and “H.” Phil Kastel (the New Orleans Mob), ran the Tropicana, and had business ties to Costello. Want more?

And those names and initials….

Most likely: Mike Rizzitello
Active in Las Vegas in the mid‑1950s
Connected to the Los Angeles and Chicago families
Known to work casino floors and handle cash
Had ties to the Tropicana through the early LA/Chicago investment group
Rizzitello later became a major figure in Vegas skimming operations.


“Jake” — Almost certainly Jake Lansky
This one is extremely strong.
Why Jake Lansky fits:
Jake was Meyer’s trusted Vegas cash courier
He handled skim pickups for the Flamingo, Sands, and Tropicana
He lived in Las Vegas for long stretches
He was known to receive direct envelopes from casino managers
The Tropicana had New Orleans and Lansky influence from day one
Jake was the guy who physically moved money — exactly the kind of person who would appear on a payout sheet.


“L.” — Most likely Louis “Lou” Lederer

Early Tropicana investor
Connected to the Miami and Lansky networks
Known to receive skim shares
His name appears in several Tropicana-related financial investigations


Most likely Herman “Hymie” Levine

A known courier and collector for the New Orleans mob
Worked directly under Phil Kastel
Involved in Tropicana operations
His name appears in several FBI files related to Tropicana skim distribution.

This distribution list fits perfectly with the New York–New Orleans–Vegas pipeline that ran the Tropicana skim in 1957.

Key Figures:

• Kansas City mob

• Chicago Outfit

St. Louis and Philadelphia share a taste

• Later: Anthony ‘Tony the Ant’ Spilotro

Structure:

• Skimmed via count-room diversion.

• Funds couriered to Midwest crime families.

Lansky’s Role:

• Indirect; part of broader syndicate revenue model.

• Financial architecture consistent with the earlier Lansky system.

The success and eventual struggles at the Riviera are covered in detail in Vegas and the Chicago Outfit.

6) Caesars Palace

Mob Influence:

1966–early 1970s (limited direct mob control compared to Stardust or Tropicana)

Founder:

• Jay Sarno

Jay Sarno (July 2, 1922) was born in St. Joseph, Missouri, and became a tile contractor in Miami, Florida. Jay Sarno, with partner Stanley Mallin, met Jimmy Hoffa and Allen Dorfman. Hoffa was the head of the Teamsters Union. Dorfman was the money genius. This meeting led to funding from the Central States Pension Fund to build the Atlanta Cabana Motel.

Later, funds were available to build Caesars Palace (opened August 5, 1966) and later Circus Circus. Caesars Entertainment remains the greatest name in gaming history.

Financing:

• Teamsters Pension Fund loans.

• Financial environment overlapped with mob-influenced lending channels.

Important Distinction:

Caesars Palace was more corporate from its inception than earlier mob-dominated resorts. However:

• Pension fund financing had an indirect organized crime influence.

• Certain skim allegations surfaced but were not as systemic as at Stardust.

Lansky’s Role:

• No documented direct operational control.

• Influence primarily structural: the broader system of pension-fund financing and profit layering mirrored earlier syndicate methods. Internal reviews in the late ’60s found substantial cash losses. At least one management-level employee was charged. At least three employees lost their jobs.

7) Riviera Hotel and Casino

Mob Influence:

1955–late 1960s

Key Figures:

• Chicago Outfit affiliates – Tony Accardo and Sam Giancana

• Various concealed investors

Gus Greenbaum was a respected and trusted casino manager who ran the El Cortez, the Flamingo, and then, begrudgingly, the Riviera. His role at the Riv was demanded by Chicago’s Sam Giancana and led to his demise.

Lansky’s Role:

• Likely syndicate-level financial participation.

• No documented day-to-day management.

8) Fremont Hotel and Casino

Mob Influence:

1956–1980s (via Teamsters-financed ownership), starting with Ed Levinson and Lou Lurie. Later owners included Allen Glick’s Argent Corporation. The funding came from Teamsters’ money organized by the Kansas City mob. This funding also included the Hacienda, Stardust, and Marina casinos.

Key Figures:

• Allen Glick

• Kansas City mob interests

• Chicago Outfit

Lansky’s Role:

• Indirect structural legacy.

• Financial model derived from earlier Lansky-era revenue systems.

Summary: Levels of Lansky Involvement

Direct Financial Backer

• Flamingo

Syndicate-Level Participant / Profit Allocation

• Desert Inn

• Sands

• Riviera

Structural Influence (Skim & Distribution Model)

• Stardust

• Tropicana

• Fremont

• Caesars Palace (indirect financial ecosystem)

Timeline Overview of Peak Mob Control in Vegas

Period Characteristics

1945–1955 Syndicate-backed casino launches

1955–1967 Skimming institutionalized

1967–1975 Teamsters financing era

1975–1983 Federal prosecutions dismantle skim system

Key Turning Points

• 1947: Siegel murder → financial discipline era

• 1959: Cuban Revolution → Vegas becomes primary hub

• 1967: Howard Hughes purchases Desert Inn → corporate era begins

• 1980s: Stardust skim prosecutions → mob control collapses