Nevada’s gaming history is filled with tales of millionaires and Mafia chieftains who swept into the state, took over casinos in Southern Nevada, and transformed Las Vegas. But Northern Nevada tells a different story—one shaped by a unique breed of entrepreneurs.
Harold and Pappy Smith arrived in the 1930s and transformed their tiny Harold’s Club into the state’s best-known casino. Bill Harrah, much like the Smiths, came to Reno with little more than hope and ambition, yet he built what would become the world’s largest casino conglomerate.
Then there’s Woody Loftin—a small-town visionary who turned modest profits into life-changing enterprises, creating jobs in areas of Nevada that lacked the steady stream of tourists found elsewhere in the state.
If you’ve never heard of Woodrow Wilson Loftin, he was born on October 30, 1912, in the small hamlet of Prentiss, Mississippi. The Loftins lived and worked on a cotton farm, dedicating themselves to growing cotton for sale at the local market and raising enough vegetables to sustain the family. Hard work – every day.
At age 20, Woody joined the CCC in Biloxi, married Madeline Harrington, and welcomed a son, Truett. Soon transferred to Nevada, he landed in Warm Creek outside Wells. Woody worked hard, missed his son in Mississippi, and ultimately decided to make Nevada his home—a decision that led to a divorce.
Afterward, Woody met Helen Hepworth, whom he married in Elko, Nevada, in 1940. Woody continued working in Warm Springs while Helen lived in Wells, but they made the 250-mile drive regularly to be together. Two years later, traveling in a trailer, they enjoyed the beach at Walker Lake near Hawthorne, Nevada, where Woody was hired at the Naval Ammunition Depot. Naval, you ask? Yes, right in the middle of nowhere, Nevada.
Still, the Loftins loved the town, and one night Woody came home excited to share that the Texaco station was for sale. After saving diligently, they purchased the two-pump station. Recouping the purchase price proved challenging, with daily sales of $15 to $20 from gas, 75-cent tire repairs, and $1.25 lube jobs.
Helen often worked at the station, including the time Woody was nearly blinded by a pressurized grease gun. Fifteen-hour days were common, and the hard work paid off. They were able to remodel the station twice, growing each time by purchasing surrounding businesses.
Hawthorne was a rough and tumble town. Many servicemen had no cars, so the main drag was filled with hard-drinking men with money in their pockets and nowhere else to go. Harry’s club, Trenkle Bar, El Capitan, Nevada Club, and Joe’s Bar all had gaming. It was said, “On occasion, some gambling breaks out among the fighting.”
There was plenty of money, and several operators had their first successful experiences in Hawthorne. Joe and Pick Hobson opened the Hawthorne Club in 1941. Pick had been working at the Palace Club in Reno, and running his Columbo Night Club. In Hawthorne however, Joe was the boss. The money was terrific, and it had to be, just to make up for the damage done by roudy local players.
In the early ‘50s, Woody bought a fuel truck to deliver heating fuel oil directly to customers. Not every road was paved, and there were plenty of times rainstorms had washed out the dirt roads, or black ice made them even more trecherous. Mineral County wasn’t LA County, it was hardscrabble dirt surrounded by desert.
A few years later, he bought more land to build a bulk plant to store gasoline, then came the car dealership.
As a respected businessman, Woody was well known in town, often flying back east to pick up new Dodge and Plymouth automobiles. This eventually led to his purchase of Mac McKinny’s Chevrolet Agency in Hawthorne. But the highlight of that year was Woody’s son, Truett, coming to live with Woody and Helen.
To celebrate Truett’s arrival, they bought a new house in town and furnished it with pieces chosen in Reno. The family spent time getting to know one another. Truett enjoyed visiting his father’s Texaco station and Woody Chevrolet dealership—but he had yet to see his father step into the casino business, which was just around the corner.
The El Capitan Comes Calling
More accurately, Barney O’Malia called on Woody one day with a silent partner deal that he believed could benefit them both. The El Capitan casino—visible behind Loftin’s Texaco station—was the largest in town. Operated by Barney and co-owned by Gordon and Lindsay Smith, it featured 118 slot machines, keno, ten blackjack tables, a craps table, and roulette. Behind the casino, 111 motel rooms offered respite for weary travelers. It wasn’t a gold mine, but it was profitable.
Although Barney had handed over daily operations to the Smiths, he retained the gaming license since 1952. He offered Woody a share of the El Capitan while he pursued building a new casino at South Shore Lake Tahoe—a property he planned to name Barney’s. For less than $100,000, Woody acquired a 36% stake in the Hawthorne casino, along with a commitment to provide financial backing for future expansions.
At the time, the casino employed more than 250 people. While some were surprised to see Woody take on an ownership role, nearly everyone in town knew him—and appreciated his reputation as a direct yet fair employer. He was no longer silent!
Woody and a partner invested $150,000 to purchase and relocate buildings from the base, constructing the Sand N Sage Lodge. When finances became strained, Woody bought out his partner and asked Helen to manage the property. She recalls it took about five years to pay off the $350,000 debt to the bank—a remarkable feat for such a small lodge.
Life at Lake Tahoe
Woody was eager to pursue more investments, and Barney O’Malia presented another opportunity. Barney’s Club at Tahoe, which opened in 1961, was a success: a restaurant and poker room occupied the upstairs, while table games like blackjack, craps, and roulette filled the downstairs. There was even a $25,000 keno game for just a 60-cent ticket. 25-cent craps and $1 blackjack didn’t mean the club wasn’t making enough money, but trouble was brewing among the partners.
O’Malia built the casino with Richard L. Chartrand, a savvy gaming operator from California who had profited from illegal casinos in the 1950s and real estate sales in Fresno. Both men contributed $80,000 to open the property, each retaining 25.5% of company stock, with additional shares to be sold if more financing was needed.
As always, Nevada welcomed those with questionable gaming pasts, as long as they played by the rules in their new state. Chartrand tried, but he wanted his now 31.5% ownership to grant him controlling interest—despite first agreeing to sell his share at a fair price.
Meanwhile, Lloyd J. Johnson and Albert D. Gunnel were both given permission by the Nevada Gaming Control Board to purchase a $25,000, one percent interest in Barney’s Club. What O’Malia needed most, though, was cash from Woody Loftin to buy out Chartrand.
Woody was ready to make a deal and was pleased to learn that his holdings in the El Capitan were nearly sold, thanks to a proposed $2.3 million investment from out-of-state buyers. His share would exceed $800,000.
However, instead of acquiring part of Barney’s, Woody tried to help O’Malia by lending “Sharkey” Begovich and “Dick” Chartrand $120,000 to open a casino down the block. This provided Chartrand with a new financial opportunity and a reason to sell his Barney’s Club stock.
To that end, the Nevada Gaming Control Board authorized Chartrand to own 85% of the South Tahoe Nugget, with Loftin holding the remaining 15%. Miles S. Begovich was appointed as a corporate officer and casino manager. The casino never opened as the “Nugget” although the property was known as the South Shore Casino in 1965 and then the South Tahoe Casino in 1966 and 67. The partners were licensed as the South Tahoe Nugget’s machine operators division as machine operators. Piecing together owenership, values, and leases often became impossible at the lake. One reason there were squables, or worse.
The Chartrand Mystery
Two separate deals to sell the El Capitan collapsed, leading Barney O’Malia and Chartrand to sue and countersue each other over a mere 1.5% of Barney’s stock. Eventually, O’Malia sold his interest in Barney’s to Chartrand and redirected his funds back to Hawthorne, where he purchased the Smith brothers’ shares and managed the casino alongside Loftin.
At the lake, Chartrand argued with multiple recorded shareholders—and at least a few unauthorized by the state to share profits. By 1968, he was running low on both cash and friends. In August, as he left his home near the casino and drove down his driveway, a bomb exploded beneath his car, killing him instantly.
Over the years, numerous theories have emerged about Chartrand’s demise, and videos have introduced new ideas about the case. Yet, no one has ever been jailed for his killing.
Woody was deeply shaken by the violent outcome of Chartrand’s casino involvement. Strangely, after the car bombing, Woody ended up with a 25% stake in Barney’s casino—a share that grew over the years as he invested in refurbishments and marketing. He was known for a congenial approach to employees, offering good working conditions and holiday bonuses.
In 1970, Loftin was elected to a three-year term on the board of the Gaming Industry Association of Nevada, Inc.
Carson City Casinos
While Woody continued to purchase land in Hawthorne, he also owned two casinos: the Monte Carlo, which closed in 1958 and became a storage facility, and the Hawthorne Club, which was leased out until 1973. He was also a partner in the Hawthorne Funeral Home, operated a second service station on Main Street, and eventually acquired the Carson Theatre in Carson City.
Carson City and its casinos saw more traffic than Hawthorne, prompting Woody to purchase a condominium there before building a new home. He also acquired a Shell station, returning to his financial roots.
Afterward, Woody bought a large lot and constructed a three-story building for Nevada National Bank to lease. In 1973, the Nevada Gaming Control Board recommended approving a stock transfer from Woodrow Loftin to Barneys Club, Inc., and the South Tahoe Nugget for shares he owned in each club. The sale of Woody’s 50% share in Barney’s Club temporarily left the previous co-owners’ parents, Louis and Elizabeth Chartrand, with 100 percent of Barney’s, along with a significant note due to Loftin. For a time, they also held 82 percent ownership of the Nugget.
Later, Carson City attorney Robert G. Berry was approved to purchase 45 percent of Barney’s stock, along with his wife Anna. The Gaming Control Board also approved an option for him to purchase shares in the Nugget. Berry became CEO of Barney’s and assumed responsibility for the financial note owed to Loftin.
Board Chairman Phil Hannifin questioned whether Berry and Barney’s could manage the payments owed to Loftin but was assured that the club’s business was robust enough to weather any economic downturns. That assurance would soon prove incorrect. Ten years later, Loftin still held part of the lease at Barney’s.
As the world—and especially the US—would learn, unforeseen global events could devastate the economy. In late 1973, an oil crisis struck, hurting Lake Tahoe’s vacation industry. Although oil supplies normalized after six months, the 1973–74 stock market crash compounded financial losses. The squeeze on oil flow meant a squeeze on payments to Loftin, who was also working to sell his 50% share of the El Capitan.
In Carson City, the downturn in Nevada’s gaming industry also affected the town’s largest casino, the Ormsby House.
The Saga of the Ormsby House
The original Ormsby House was built by Major William Ormsby. It was purchased by Dominique Laxalt and later demolished. The Laxalt family wasn’t rich by today’s standards but might be generously called prosperous. Dominique’s son, Paul Laxalt, was the Governor of Nevada from 1967 to 1971. He then represented Nevada as a United States senator from 1974 until 1987.
Paul Laxalt and his family built the new Ormsby House and casino at the corner of 5th and Carson Streets, relying on a shoestring budget and multiple loans from several banks.
Unfortunately, the same declining US economy that hampered all of Nevada hit Carson City as well. After a grand opening in 1972 and promising prospects, the casino was $600,000 underwater by late 1973, and securing additional cash infusions proved difficult.
As Laxalt later recalled, “The First National Bank of Nevada supplied some of our initial loans, but then they stiffed us. That’s what happened. They abandoned us in the middle of Lake Tahoe without any oars.”
Conversely, the First National Bank of Chicago proved generous, lending enough money to Laxalt and the Ormsby House to sustain operations for the next two years. However, profitability remained elusive, and Laxalt began discussions with Woody Loftin about handing over management of the Ormsby House.
In 1975, Paul and his brother Peter, who held controlling interests in the Ormsby House, announced their confidence that Woody Loftin would be able to purchase the property with approval from the Nevada Gaming Control Board and the First National Bank of Chicago, which held all the notes by that time.
The state gaming commission issued its final ruling on February 19, 1976, in Las Vegas, approving Woodrow Wilson Loftin to purchase the Ormsby House Hotel and Casino.
Loftin’s approval was contingent upon his promise to inject $1 million in new capital into the club and assume all debts of the 200-room property, which had been built at a cost of nearly $7.5 million. Loftin’s other investments were negligible.
At the time, Woody held a majority interest in the El Capitan Club but saw his role there diminish as he assumed the position of Chairman of the Board at the Ormsby House.
The Generosity of Woody Loftin
In a bold and generous gesture, Woody gifted shares of voting stock at the El Capitan casino to several longtime managers and family members. In 1975, he explained, “I’m honored to reward our finest workers with a small part of the casino they’ve worked so hard to make special and profitable.”
A year later, Woody informed the State Gaming Control Board of his intention to give away more than half of his voting stock in the Ormsby House. The plan reduced his holdings to 49.32% of the class “A” voting stock and 39.34% of the nonvoting “B” stock. His son, Truett, an insurance broker in Sacramento, California, received 25% of the “A” stock and 14% of the “B” stock.
The plan also included approximately 13% of each class of stock for Loftin’s ex-wife, Helen, with smaller shares for Wilma May (Woody’s sister), his lawyer Clark Guild Jr., Ormsby manager Clark Russell, and several other employees.
Such a generous transfer of stock was a rare and classy move in Nevada’s gaming industry.
The hotel and casino hit their stride in 1976, enabling Loftin to pay down loans and upgrade the facility. I can personally attest to the casino’s beautiful layout; I first gambled there in 1977 and stayed in the wedding suite after being married in a small chapel nearby.
Although my bride, our friends, and I were underage, we enjoyed nickel slots, $2 blackjack, $3.95 lunch buffets, and sumptuous $5.95 prime rib dinners. Thousands of happy visitors shared these experiences as the property entered a profitable decade of hospitality.
Nevada Gaming and the 1980s
The new decade ushered in a wonderful period for Nevada casinos. Although Las Vegas was in a minor slump with no new properties opening, Northern Nevada was booming.
In Reno, no fewer than eight properties opened: the Onslow, Sahara Reno, MGM Grand, Comstock, Money Tree, Reno Ramada, Circus Circus, and the Sands. These casinos thrived for several years, but as the decade ended, two were sold and renamed, and three others closed.
In Carson City, the Travel Lodge hotel and casino opened at 900 South Carson Street in 1978. It closed in 1979 and soon became part of Woody Loftin’s holdings. By 1983, the property had reopened as the Mother Lode Casino.
At the Ormsby House, the Capital Sportsbook and Woody Loftin were commended for having one of the few sportsbooks with upgraded betting facilities and proper safeguards in place before the new football season. Other sports and wagering properties across the state were chastised by the State Gaming Control Board for being out of compliance.
When Woody started his business in Hawthorne, he did most of the work himself, often putting in 14-hour days. Even at age 70, he remained deeply involved, overseeing all aspects of his properties and operations. On September 6, 1985, he symbolically turned the first scoop of dirt for a new parking garage behind the Ormsby House. This garage was just the first of five new projects he envisioned for the property, including a new hotel tower.
It was an optimistic view of the future, but Woody Loftin always planned well and acted decisively. Although he didn’t live to see the parking garage completed, it was finished promptly and became a boon for all businesses along Carson Street, as well as the Ormsby House.
Woody passed away during heart surgery in Sacramento the following month, on October 27, 1985. He left charitable gifts totaling nearly half his estate: $25,000 grants went to nearly a dozen churches and hospitals, and $50,000 to the University of Nevada regents.
In 1975, Loftin helped establish the Mineral County (Hawthorne) library with a $43,000 donation. After his passing, the library received an additional $155,455.
Meanwhile, the Ormsby House parking garage was completed, the coffee shop was refurbished, and after the Nevada Gaming Commission approved a stock buyout, Woody’s son Truett took control of the property. That approval gave Truett and his second stepmother, Wilma Loftin, a 90 percent interest in the Ormsby House and the corporation that owned it. Helen Loftin, Clark Russell, and Clark Guild Jr. were bought out.
Truett Loftin finished high school in Hawthorne while working at Woody Chevrolet. After graduating, he joined the Navy and served a tour of duty in Washington, D.C., with Naval Intelligence. He is shown above with his daughters, L-R Antionette, Katrina and Tina.
Truett’s biggest concern during the ownership transition was maintaining a steady income stream to pay down the buyout, which included the costly new parking garage.
“Dad really loved the Ormsby House, and after he died, we saw it heading in a different direction than he wanted. I’ve been a stockholder for the past seven years but never participated in day-to-day operations. I run my own insurance business in Sacramento and still commute back and forth, but eventually, that will have to be set aside.”
“I knew he wanted it to grow and be a major part of the community,” Loftin said. “My partner and I are pleased to bring the corporation back under family control. We feel very positive about the future of the Ormsby House, and the stock buyout will give us the boost we need to achieve our goals without the stagnation that sometimes comes from a diverse group of stockholders.”
The parking garage was just the beginning, as Truett planned to expand the existing building into the north-end parking lot. “This will greatly expand our existing food services and casino,” Loftin said.
There were plans for a new 10-story hotel tower, but as Truett said, “Our business is almost totally drop-ins,’ Nobody plans to come to Carson City.
And thus, truer words were never spoken. Reno and Tahoe had built-in fan bases who traveled to Nevada specifically for their casinos. Carson City, by contrast, was stuck in the middle, just thirty minutes from each.
“This winter, we plan to get more involved in winter events. Spring and summer are great, but it’s simply too quiet around here in the winter,” Loftin said.
In Sparks, Nevada, Karl Berge’s Silver Club faced a similar situation, with more than $2 million in debt tied up in land intended for a parking lot. The expense was high, with no new income coming from the investment.
Loftin saw golf tournaments as a good way to fill hotel rooms, noting, “We sponsored 18 golf tournaments this past year and hope to raise that number to 25. We promote tournaments regionally in other states and fill each roster that way. We’re really looking forward to the completion of the second golf course in Carson City.”
“And the most important thing we’ve learned is that once we get people here the first time, they come back again and again,” Loftin said. He championed a customer-oriented management philosophy, pointing to the Ormsby House organizational chart with the customer at the top. “I’ve got the easiest job in the company,” Loftin observed. “I’m the cheerleader.”
“We also promote from within. Our assistant food and beverage manager started here a few years ago as a bus person.”
Fluctuating income became a major issue for the Ormsby House, and the economic downturn that struck Reno—closing multiple casinos—hit Carson City with brutal force. Chuck’s Golden Spike had closed a few years earlier, followed by the Horseshoe Club. Next was the Mother Lode casino, leased to an independent operator. At Lake Tahoe, the Nevada Club closed for the winter and never reopened.
The Ormsby House continued promoting golf, hosted boxing events, and marketed special weekend stays featuring motorsports and local recreation. Still, the weight of the sluggish economy was too much, especially with no income from the Mother Lode lease. All this occurred in the midst of a multimillion-dollar expansion that included a new coffee shop and convention space.
The projects added $2 million to the club’s $7.7 million debt to Valley Bank, and while general manager Larry Close described a 45-person layoff as a seasonal issue, the move included the casino manager—never a good sign.
Close promised that as business improved, employees would be rehired, but revenue remained flat and some supplier accounts went overdue.
Truett used various tactics to boost business and buy time to reestablish a financial rhythm with Valley Bank. The Ormsby House managed to stay afloat through the summer of 1990, but then the coffers ran dry.
At the start of the month, Terry Rankin of the state insurance board reported that employees would lose their health insurance that Saturday. On September 5, 1990, the Ormsby House Hotel Casino filed for Chapter 11 bankruptcy. Like Karl’s Silver Club, business was heavily disrupted by road construction directly in front of the casino.
Loftin and Associates listed estimated assets of $23,267,065 and liabilities of $14,558,800.
Against all odds, the property stayed open for another 18 months, managing debt and keeping hundreds of workers employed. Truett, who had been receiving a $10,000 monthly salary, was replaced in March 1992 by Jeri Coppa, a trustee appointed to operate the club under bankruptcy court jurisdiction.
All efforts shifted to finding a buyer for the property, but the economy remained weak, and new Las Vegas mega casinos dominated gaming in Nevada. At the Ormsby, the once lively gaming area and restaurants grew quiet; marketing was minimal, and as Jeri Coppa said in January 1993, “We struggled for nine months and we’ve done very well. Sure, I wish I could have gotten a buyer. But there comes a point where there is nothing else you can do—we are closing.”
By that time, the Ormsby was a shadow of its former self. Still, employees were surprised and disappointed to learn that all 200 workers were now out of a job.
Down the street, the Senator Club and the Carson Nugget made minor changes to their gaming floors, but saw only a slight increase in gaming revenue. There simply wasn’t enough play in Carson City to support as many clubs as there had been in the 1980s. Even today, the gaming revenue in the city has barely improved.
What Woody Loftin provided, and his son continued, was a warm, embracing place to work, and an exciting place to gamble. You can’t have much more than that in a casino. When you do, it’s fantastic.
Editor’s Note:
I wish to thank the Loftin family for providing photos and stories about their experiences in the Nevada Gaming industry, and personal remembrances from their lives in the state.
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