13 Most Epic Mob Moments in Las Vegas History

These real-life mafia tales expose fascinating facts about how the mob built Las Vegas and what legacy it leaves behind on today’s Strip.

13 Epic Ways the Mafia Helped Vegas Rise to Power

The inner workings of the mafia have intrigued the public for decades. Hollywood tells its version of the story in classic films like “The Godfather” and “Goodfellas” and more recent TV shows like “The Sopranos” and “Families of the Mafia."

But one of the most interesting angles takes us to the desert, where crime families set up shop in Las Vegas transforming it into the megaresort tourist destination it is today. During the mob’s heyday from the late 1940s to the mid-1980s, casino skimming and money laundering were the names of the game. After all, Vegas had to earn its “Sin City” nickname.

But no two mobster stories are alike, which is why we rounded up the 13 most influential mafia moments that helped Vegas rise to power — and then we ranked them on just how epic they really were. These real-life mafia tales expose fascinating facts about how the mob built Vegas and what legacy it leaves behind on today’s Strip.

13. When Jim Ferguson Used City Documents to Plot His Illegal Activities

Year: 1925

Gangster in Question: Jim Ferguson

Not many people realize this, but while East Coast mobsters didn’t take interest in Vegas until about 1950, gambling had already become commonplace here. It was banned in Nevada in 1909 but then became legal again in 1931, setting the stage for what was to come.

But exactly who came first was Jim Ferguson, the OG mob boss of Vegas’ underworld.

The Story

A brief stint in Ely, Nevada, where Ferguson met Vera Magness, a prostitute who wanted to set up her own brothel, led the two to Vegas in late 1924. Despite being illegal, gambling, prostitution and bootlegging were really starting to take off.

New to the scene, Ferguson was able to look at it from a fresh perspective. Current members of the Clark County Grand Jury were unhappy with the illegal activities, going as far as issuing a report in February 1925 that outlined the weaknesses of local law enforcement. The result? Ferguson used it to his advantage when he and Magness opened their first brothel in the city’s red-light district.

His plan was to overthrow his rival Al James, who owned and operated the Arizona Club. A rather public assault on James landed Ferguson in county jail for four months, but he succeeded in pushing James out and quickly became in charge of all illegal activity in the desert.

How It Ranks

The No. 13 ranking goes to Ferguson’s mastermind plot because he was the first to really instigate organized crime in Vegas and to put it on the national map.

Sure, someone else would have probably taken his place by taking advantage of the illegal bootlegging scene, but it was Ferguson who earned the crown as “King of the Tenderloin.”

12. When Guy McAfee Opened the Golden Nugget

Year: 1946

Gangster in Question: Guy McAfee

Next up is the story of Guy McAfee, a gangster cop who already had a history with organized crime, owning illegal casinos and brothels alongside his wife in Southern California.

Serving as commander of the Los Angeles Police Department vice squad meant he was successful for a long time, with inside information that helped him stay ahead of the game. It’s likely why McAfee’s Clover Club, an illegal casino on the Sunset Strip, was able to attract the Hollywood elite.

The Story

When a new mayor came to Los Angeles in the late 1930s, upending McAfee’s operations, he fled to Vegas in 1938 to pursue his business elsewhere. He bought the Pair-O-Dice club along Highway 91, where the Last Frontier most recently stood on today’s Las Vegas Boulevard, and he renamed it the 91 Club.

The club’s success led to other business ventures, most notably the Golden Nugget casino, which was the world’s largest casino when it opened in 1946. The addition of a 100-foot neon sign to the hotel’s facade in 1949 made it one of the “brightest nightspots in the world.”

How It Ranks

McAfee certainly left his mark on Vegas and lived here until 1960 when he died at age 72, which is ancient in mobster years. While the Golden Nugget is no longer the largest resort on the Las Vegas Strip by a long shot, it certainly paved the way for other big-name resorts that have taken over.

Still, this moment didn’t make the top 10 because there were other luxe properties that also opened around this time (ahem, the Flamingo), which, let’s just say, have a juicier story to tell. More on that later...

11. When Moe Dalitz Testified in the Kefauver Hearings

Year: 1951

Gangster in Question: Moe Dalitz

Moe Dalitz had a history with bootlegging during Prohibition, a fact that was quite publicly questioned in the infamous hearings conducted by Tennessee Senator Estes Kefauver, who was put in charge of the U.S. Senate Select Committee on Organized Crime and Interstate Commerce in 1950.

During this time, the Kefauver committee came to Vegas to conduct the hearings in the old federal building, which is now the site of The Mob Museum (aka the National Museum of Organized Crime and Law Enforcement).

The Story

Dalitz was from Cleveland and led a group of Cleveland syndicate friends to invest in the Desert Inn resort in Vegas. With a 75 percent stake in the $6.5 million property, they opened it in 1950.

By February 1951, Kefauver got Dalitz to testify, hoping that he could prove Dalitz used money earned from running illegal liquor and casino operations in Florida, Kentucky and Ohio to open the Desert Inn. While Dalitz did confess to illegal acts of older than six years, he avoided charges because they were outside the statute of limitations.

How It Ranks

So, why exactly does this story matter you ask?

Well, the hearings were televised live, causing perhaps the first spark of intrigue from massive audiences across the country. Not only did the public start to show an interest in what these mobsters were doing, but other mob bosses wanted in on the action.

In fact, Dalitz’s public testimony is believed to have brought the Chicago Outfit to Vegas. After all, Nevada was the only state where gambling was legal at the time.

10. When Caesars Palace Opened With Teamsters Money

Year: 1966

Gangsters in Question: Jimmy Hoffa, Frank Rosenthal

The 1950s brought a slew of mafia-backed casinos to Vegas — the Sands, Dunes, Riviera, Tropicana and Stardust — several of which were financed by pension funds from the International Brotherhood of Teamsters labor union.

And who was the union president of the mob-run Teamsters? None other than Jimmy Hoffa, notorious for his involvement in organized crime in the Midwest.

The Story

The biggest resort that the Teamsters backed was Caesars Palace. When hotel developer Jay Sarno opened the 680-room property in 1966, the Ancient Rome-themed resort defined the new image of Vegas.

Its themed interiors and costumed staff laid the groundwork for the New York-, Paris- and Venice-themed resorts that would come later.

How It Ranks

Caesars wasn’t only famous for its architectural vision though. You see, this hotel and other Teamsters-backed casinos were the very spots where Frank Rosenthal served as pit boss. You may know him as being the inspiration for Robert De Niro’s character, Sam “Ace” Rothstein, in the movie, “Casino.”

In fact, Rosenthal was secretly running four casinos without ever obtaining a state gaming license and is credited with creating the first sportsbook operated within a casino. So, it’s quite fitting that the Caesars opening makes the No. 10 spot on this list.

9. When the Mayor Helped Jim Ferguson Against the Feds

Year: 1926

Gangster in Question: Jim Ferguson

But before we move too far into the 1970s, when the mafia saw its ultimate rise and fall, let’s go back to the OG mobster, Mr. Ferguson.

Upon release from jail in early 1926, Ferguson devised a way to distribute illegal liquor by working with the city’s mayor Fred Hesse and police chief Spud Lake. By paying city officials monthly fees and fines, both wholesale and retail bootleggers were able to operate freely under Ferguson.

The Story

Everything ran somewhat harmoniously for a couple of years. But federal officials, unhappy with the local government’s inaction on fighting crime, planned a surprise raid in 1928.

The mayor was able to get the feds to agree to transfer the cases to local court by paying them back for the raid expenses. Not long after, though, an 8-year-old son of a local bootlegger who refused to pay Ferguson was shot. This, again, led to federal involvement, and Ferguson landed in jail for a year. Upon release, he realized that other mobsters like Guy McAfee had begun to take hold of the city’s underworld.

How It Ranks

Ferguson really had an impressive hold on Vegas for a few years. While he was certainly not the last to pay off cops to keep illegal activity afloat, he was certainly one of the firsts. But what makes this moment even more influential is how it attracted national attention from law enforcement.

The feds now had an eye on the gambling and prostitution activities in Sin City and would keep a careful watch for decades to come.

8. When Benjamin “Bugsy” Siegel Opened the Flamingo

Year: 1946

Gangsters in Question: Charles Luciano, Meyer Lansky, Bugsy Siegel

While Ferguson and McAfee were really the first big names on the Las Vegas Strip, it was Bugsy Siegel who people typically credit for bringing the mafia to Sin City. And that’s certainly true for East Coast gangsters.

The Story

Representing mobsters Charles “Lucky” Luciano and Meyer Lansky (of New York’s Luciano crime family), Siegel opened the Flamingo resort — the initial swanky property to set up shop on the Strip — in 1946. It was basically the Caesars Palace of those early Vegas days.

Lansky was really the brains behind the operation and had a vision of creating the most luxurious hotel-casino that would attract people from across the country to spend their money here. Hmmm … sounds like his plan worked.

How It Ranks

Here’s another hotel opening with major influence. After all, there’s no organized crime quite like the New York mafia. And this was just the beginning of Lansky’s major hold on the Vegas scene, which is what makes this moment worthy of the No. 8 ranking.

Bugsy, however? Well, his moment in the limelight lands him another spot on this list.

7. When Moe Dalitz Was Named Humanitarian of the Year

Year: 1976

Gangster in Question: Moe Dalitz

Now, most of the mafia tales are that of crime, but Moe Dalitz was definitely the exception. “Mr. Las Vegas” gave back to his community in several ways, so much so that he was named Humanitarian of the Year by the American Cancer Research Center and Hospital in 1976.

The Story

Yes, Dalitz first made his mark in Vegas when he and his partners purchased the Desert Inn, which is where he happened to also build the city’s first golf course.

But he also helped develop the Las Vegas Convention and Visitors Authority, Las Vegas Convention Center, Nevada Resort Association — all of which still today attract major tourism to the city. And even more importantly, he helped start the University of Nevada, Las Vegas, as well as secured a loan from the Teamsters to build Sunrise Hospital.

How It Ranks

Sure, this isn’t the most exciting mobster story. No one wants to hear about any good done by these criminals, but the truth is Dalitz really did know how to give back.

His modern-day Robin Hood story is surely what earned him the “Mr. Las Vegas” nickname and why his legacy remains a part of the city’s current operations.

6. When Giusseppe “Johnny” Roselli Controlled the Monte Presser Talent Agency

Year: 1959

Gangster in Question: Johnny Roselli

With a name like Giusseppe Roselli, that alone could raise suspicion about ties to the Italian mafia, but perhaps the one word on his business card describes him best: “strategist.”

The Story

Sent from the Chicago Outfit to build the Tropicana and Royal Nevada, Roselli also started the Monte Presser Talent Agency to bring big-name acts to the casino-resorts. Throughout the 1960s, all major performers like Frank Sinatra, Dean Martin and Elvis Presley booked through his company.

He was even believed to get Sinatra the role in “From Here to Eternity” that earned him an Oscar. And rumor has it that Roselli introduced President John F. Kennedy to his mistress, Judith Campbell Exner, according to the book, “The Green Felt Jungle.”

How It Ranks

Can you imagine today’s Vegas without live entertainment? That’s a Vegas we would not want to visit.

And who do we have to thank for bringing some of those initial top acts? Yep, Mr. Roselli.

5. When Bugsy Siegel Was Killed

Year: 1947

Gangsters in Question: Bugsy Siegel, Meyer Lansky

With high hopes of making the Flamingo the best of the best, Siegel realized he was in over his head before his hotel days even got a chance to take off. At the opening, only the casino, lounge, restaurant and theater were finished, which left unfinished guest rooms and noisy construction for paying guests.

The Story

In only two weeks, the resort reported $275,000 in losses and was shut down in late January 1947. But all was not lost. Siegel turned to his mob-accountant friend, Lansky, who asked the angry mob bosses to give him a second chance.

The Flamingo reopened in March 1947 and did begin to earn money, but it wasn’t enough. On June 20 that same year, Siegel was killed in his Beverly Hills, California, home. Technically, Siegel’s murder remains unsolved, but we can leave it up to the imagination. After all, within 20 minutes of his death, Lansky’s associates took control of the Flamingo.

How It Ranks

Ahhh, Bugsy. He's certainly gotten a lot of credit in Vegas history, perhaps more than he deserves.

But his good lucks and charismatic persona is what made the 1950s mobster so appealing, attracting the masses to the desert with the allure of a more sinful escape.

4. When Anthony “The Ant” Spilotro Took Over Loan-Sharking

Year: 1971

Gangster in Question: Anthony Spilotro

The 1970s brought in a new era of mobsters — most notably Anthony Spilotro of the Chicago Outfit. Spilotro (the inspiration for Joe Pesci’s character in “Casino”) came to Vegas in 1971 as the Chicago mob’s enforcer of its casino operations.

The Story

To say Spilotro was tough is an understatement. The Los Angeles Times reported that by 1974, only three years after Spilotro’s arrival, more mafia-style murders had happened than all of the 25 years prior.

He also started his own Hole in the Wall Gang that went after jewelry, furs and anything else of value that he didn’t have to send back to the Midwest. The gang’s burglaries led to several arrests and trials in which Spilotro managed to avoid charges.

The result didn’t end up too well for Spilotro though. By 1986, the mob bosses were sick of his shenanigans (including an affair with Frank Rosenthal’s wife), and Spilotro and his brother were found dead in an Indiana cornfield.

How It Ranks

The Ant was really the beginning and the end of the mafia’s high-rolling Vegas days. During his era, the mafia controlled almost every casino operation.

But Spilotro couldn’t stay even kind of under the radar with his Hole in the Wall Gang burglarizing, car-bombing and murdering their way through town. Tough, yes. But his story didn’t make it to the top as an example of his smarts.

3. When Guy McAfee Co-Founded Paradise and Gave Vegas Its Nickname

Year: 1950

Gangster in Question: Guy McAfee

Now, we’re entering the top three mafia moments in Vegas history. That means we have to go back to one of the mobsters who started it all: Guy McAfee.

The Story

In 1950, McAfee and other resort owners created a nearby township called Paradise to provide a tax shelter for the resorts along Highway 91.

It’s reported that, during this time, McAfee was the one who came up with “the Strip” nickname. This is how he referred to the area where the resorts were as a nod to his previous Sunset Strip stomping grounds.

How It Ranks

We love this moment in Vegas for two reasons. First, it’s just amazing what lengths the mafia would go to in an effort to avoid paying taxes. Paradise, by the way, now has a population of 231,858 people.

Second, “the Strip” is perhaps one of the most iconic city nicknames of all time. While we don’t like that it was essentially taken from Los Angeles’ famous road, would we really expect anything else from these guys? Way to go McAfee for taking a famous nickname from somewhere else and somehow making it more famous.

2. When Moe Dalitz Sold the Desert Inn to Howard Hughes

Year: 1966

Gangster in Question: Moe Dalitz

Billionaire Howard Hughes came to Vegas in 1966. To Dalitz’s chagrin, Hughes stayed in the top two floors of the Desert Inn, paying $26,000 a day, but didn’t gamble — not cool, Hughes!

The Story

Dalitz wanted to get rid of him to make way for other, let’s say, better-paying guests. Instead, Hughes met him with an offer to buy the hotel, so that he could have a tax shelter for his money.

Worried that the mob wouldn’t have a hold in Vegas for much longer, Dalitz agreed. Even though the mob was in Vegas for almost 20 more years, this was one of six hotels that Hughes took over from the mob during that time.

How It Ranks

This major moment in Vegas history led to the 1969 Nevada Corporate Gaming Act, which allowed publicly traded corporations to own casinos for the first time.

After Hughes’ involvement in the casino industry, several other companies followed suit and began to open or take over the casino-resorts. Most of them are still under corporate control today.

1. When Frank Cullotta Was Turned

Year: 1982

Gangster in Question: Frank Cullotta

And that brings us to the No. 1 influential mafia moment in Vegas' history. Frank Cullotta, one of Spilotro’s Hole in the Wall Gang members, was part of a 1981 arrest that led to his cooperation with the FBI.

The Story

Cullotta testified to more than 300 crimes and testified against Spilotro and other mob bosses. He spent two years in a San Diego correctional center before being put into the witness protection program.

Today, now that enough time has passed (and enough mob bosses have died off), Cullotta resumes life as himself, writing books about his past and providing mob tours in Vegas. He was even one of the key people to help open up the Mob Museum and has worked as a tour guide and speaker there.

How It Ranks

As one of the key informants to the FBI, Cullotta’s testimony led to the indictment and conviction of several mafia members throughout the last almost 40 years now, essentially ending the mafia’s involvement in Vegas altogether by the mid-1990s.

Are there remnants of the mafia still in Vegas? It looks like the last known mob hit was in 1997 of Herbert Blitzen, former right-hand man of Spilotro. But one thing’s for sure: History has always shown that when there’s gambling and money to be made, crime is typically lurking around the corner — so, whatcha gonna do about it?