Howard Hughes and the Transformation of Las Vegas

Howard Hughes' Arrival in Las Vegas (1966)

  • Thanksgiving morning, 1966: Howard Hughes arrived in North Las Vegas via a private train.
  • Hughes was a legendary billionaire recluse, formerly a celebrated movie producer and aviator.
  • He was plagued by chronic back pain and narcotics addiction.
  • Hughes sought tax shelter and refuge from the press in Las Vegas.
  • He resided at the Desert Inn, reserved by Hank Greenspan.
  • Hughes did not gamble, and his Mormon aides didn't gamble, drink, or tip.
  • Moe Dalitz wanted Hughes out due to high rollers coming.
  • Negotiations led to Hughes considering buying the hotel.

Hughes Buys the Desert Inn and Other Casinos

  • Hughes's bid came when Las Vegas needed redemption from the mob stigma.
  • The Cold War defense boom had boosted employment.
  • Governor Paul Laxalt urged approval of Hughes's license despite him not meeting standard requirements.
  • April 1, 1967: Hughes officially acquired the Desert Inn.
  • Hughes aimed to make Las Vegas trustworthy like the New York Stock Exchange.
  • He acquired strip hotels and casinos, including:
    • The Frontier
    • The Castaways
    • The Silver Slipper (whose marquee disturbed him)
    • The Landmark Hotel (opened in July 1969)

Mob Influence and Hughes' Departure

  • Original Las Vegas figures wanted to cash out and leave money to their families.
  • Hughes provided an opportunity for them to do so.
  • Hughes retired some dubious characters by buying hotels.
  • Mob-related managers remained in place, continuing the skim.
  • Hughes was defrauded along with the IRS.
  • Hughes' buying spree was halted by an antitrust suit.
  • On Thanksgiving 1970, Hughes left Las Vegas, never to return.

Corporate Las Vegas

  • The times were changing in the late 1960s.
  • Corporations like Ramada and Hilton followed Hughes's lead.
  • Access to capital improved in Nevada.
  • Wall Street's arrival led to the removal of the mob.
  • The Justice Department indicted 15 men for skimming over 2million2 million from casinos over nine years.
  • Nevada authorities investigated casinos and severed ties to organized crime.
  • By the mid-1980s, corporate America controlled Las Vegas.
  • The service declined, and the energy of old Las Vegas was muted.

The Mirage and Steve Wynn

  • In 1988, The Mirage, a new resort, began construction.
  • Steve Wynn aimed to create a major attraction, like Disneyland.
  • Traditionally, the casino was the primary focus, with other amenities as lures.
  • Steve Wynn changed this, increasing luxury and costs for middle-class tourists.
  • The Mirage revitalized Las Vegas.
  • By the 1990s, gambling's stigma had declined.
  • In 1994, many states had lotteries and legal casinos.
  • A significant percentage of the gross national product was spent on gambling.
  • Most profitable casinos were located on Indian reservations.