The best-known hotel-casinos are situated on the "Strip." Many of them have been infiltrated by organized crime, with percentage "Points" divvied up among the overlords of organized-crime cartels. (E.g., the Chicago Crime Cartel controls the Stardust HotelCasino boss _Sam "Mo," "Momo," "Mooney" Giancana_ has an 8% personal interest. Chicago hoodlum John Rosselli (the Chicago Cartel's Las Vegas overseer) has a 3% interest Chicago Mob enforcer _Dominic Michael Montalvo_ aka "Butch Montrose" has a 1% interest.) (See Addendum File #B-2 for complete list of crimecartel ownerships percentage-point estimates.)
Smaller percentage points are traded between organized crime factions as part of an ongoing effort to insure that all factions have a stake in the expanding Las Vegas casino economy. The profit base is thus shared faction-to-faction rivalry is averted. Thus, organized crime presents a unified face in Las Vegas. The man responsible for developing maintaining this policy is _Morris Barney "Moe" Dalitz_ (b. 1899), a former Cleveland mobster organized crime's "Goodwill Ambassador" Las Vegas "Fix-It Man." _Dalitz_ owns points in the Desert Inn Hotel Casino and is rumored to have points in several others. _Dalitz_ is known as "Mr. Las Vegas," because of his numerous philanthropic endeavors his convincing non-gangster image. _Dalitz_ founded the Casino Operators Council, dictates their enforcement policies is largely responsible for the "Clean Town" policy that organized-crime factions believe will help promote tourism thus increase hotelcasino revenue.
This "Policy" is informally enforced has the implicit approval of the Las Vegas political machine the LVPD Sheriff's Dept. One goal is to enforce ad hoc segregation in the "Strip" hotelcasinos (e.g., admit Negro celebrities or perceived "High Class" Negroes refuse admittance to all others) to isolate Negro housing in the slum area of West Las Vegas. (Restrictive real-estate covenants are widely observed by Las Vegas-based realtors.) A key "Policy" dictate is the "No Narcotics" rule. This rule applies specifically to heroin. The selling of heroin is forbidden is punishable by death. The rule is enforced to limit the number of narcotics addicts, specifically those who might support their addiction by means of robbery, burglary, "flim-flam" or other criminal activities that would sully the reputation of Las Vegas thus discourage tourism. Numerous heroin pushers have been the victims of unsolved homicides numerous others have disappeared are presumed to have been killed per the aforementioned policy (see Addendum File #B-3 for partial list). The last homicide occurred on 4/12/60 there appears to be no heroin traffic in Las Vegas as of this date. It is fair to conclude that the aforementioned deaths have served as a deterrent.
_Dalitz_ is a close associate of Teamster President _James Riddle Hoffa_ (b. 1914) has secured large loans from the Teamsters' Central States Pension Fund that have covered the cost of hotelcasino improvements. The Fund (estimated assets 1.6 billion dollars) is a "Watering Hole" that organized-crime factions borrow from routinely. Dubious organized-crime-connected "Businessmen" also borrow from the Fund at usurious interest rates that often result in the forfeiture of their businesses. It is rumored that a second set of Pension Fund financial books exists (one that is hidden from government subpoena thus official audit). These books allegedly list a more accurate accounting of Pension Fund assets detail the illegal quasi-legal loans repayment schedules.
Many of the "Strip" hotel-casinos routinely hide a large portion of their assets. (See the attached IRS-filed table-by-table profit accountings for all craps, roulette, blackjack, poker, loball, keno, fan-tan 8e baccarat tables, broken down by hotel.) These reported accountings are generally considered to be only 70-80% accurate. (It is very difficult to detect sustained underestimation of taxable income in large cash-base businesses.) Underestimated table profits are estimated to amount to untaxed revenue of over $105,000,000 per year ('62 fiscal estimate). This practice is called the "Skim."
Cash receipts are taken directly from casino counting rooms and dispersed to couriers who messenger the money to prearranged spots. Large-denomination bills are substituted for slotmachine coins daily accountings are fraudulently tallied inside the counting rooms proper. Casino "Skim" is virtually impossible to detect. Most hotel-casino employees subsist on low wages untaxed cash gratuities would never report irregularities. This endemic corruption extends to the labor unions who supply the major hotel-casinos with workers.
The Dealers and Croupiers Local #117 is a Chicago Crime Cartel front. Its members are paid a low hourly wage are given play chips (presumably stolen) merchandise as bonuses. All chapters of this union are rigidly segregated. The Lounge Entertainers Local #41 is a Detroit Crime Cartel front. Its members are well-paid, but pay weekly kickbacks to crew stewards. This union is nominally integrated. Negro lounge entertainers are "discouraged" from patronizing the hotel-casinos they work in from fraternizing with white patrons. The four building building-supply locals who service the "Strip" hotels are Cleveland Crime Cartel fronts work exclusively with organized-crime-connected contracting firms. The all-female Chambermaids Local #16 is a Florida Crime Cartel front. Many of its members have been suborned into prostitution. The work crews for the above mentioned locals are run by "Ramrods" who report to the Casino Operators Council.
The Kitchen Workers Union (Las Vegas-based only. There are no other chapters) is not organized-crime-connected is allowed to operate as a sop to the Las Vegas "Pioneer" contingent the largely Mormon Nevada political machine. The union is run by _Wayne Tedrow Sr_. (b. 1905), a conservative pamphleteer, realestate investor the owner of a bottom-rung or "Grind Joint" casino, the "Land o' Gold." The crew chiefs are all Mormons the workers (mostly illegal Mexican aliens) are paid substandard wages are given "bonuses" of dented cans of food play chips for the Land o' Gold. The workers live in slum hotels in a Mexican enclave on the West-North Las Vegas border. (Note: _Tedrow Sr_. is rumored to have hidden points in 14 North Las Vegas "Grind Joints" 6 liquor store/slot machine arcades near Nellis Air Force Base. If true, these ownerships would constitute infractions of the Nevada Gaming Commission charter.)