Although gambling was around in Las Vegas way before the mob, and had even been legal since the 1930s, it took the greedy imagination and chutzpah of the mafia to turn the podunk little town destined to be known as Sin city into the gambling mecca that it is today.
Las Vegas and the Mafia: Enter the Mafia
A guy by the name of Meyer Lansky gets the credit for being the first mobster to get that greedy little twinkle in his eye for Vegas who actually did something about it. (Al Capone is said to have been interested, but never acted upon the idea.) Meyer was Lucky Luciano's partner and confidant, and he didn't feel like getting the blame if Sin City didn't work out. So he enlisted Bugsy Siegel to get mob excitement and investment moving.
Siegel built the Flamingo with mob money, but he completed work prematurely, before traffic could be built up. When he got nabbed skimming lots off the top of the construction funds, the mafia gave him an ultimatum: give it back, or face the music. The eventual success of the Flamingo was Siegel's only hope of meeting their deadline, but it didn't happen in time. So Bugsy faced the music - a nasty execution in a hail of bullets photographed in all its goriness.
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