Today, we conclude our two-part biography of one of Las Vegas’ true casino pioneers.
The humility with which Gaughan did business would be un-thought-of in today’s casino world. He’d come to work through the front door and his "office" was a hotel room adapted for the purpose. But Jackie has his wild-and-crazy side and was known for offering outlandish proposition bets – the most notorious being one on where Skylab would crash to earth. (The Gaming Control Board failed to be amused by that one.) During his Omaha bookmaking days, he once had to borrow $13,000 from a friend after taking more wagers than he could cover on the 1948 presidential election. At various times, Jackie owned all or part of at least 12 casinos, and was an active and visible presence at every one, every day. He and business partner Mel Exber also dabbled in real estate, compiling a crazy quilt of parcels throughout downtown Las Vegas.
His philanthropy and civic spirit have been comparably widespread. Not only has he presided over the Las Vegas Convention & Visitors Authority and been a director of the Chamber of Commerce, he was also on the board of review for Eagle Scouts. In 2002, he launched the Boys & Girls Clubs of Las Vegas. His helpfulness also manifested itself in smaller ways, Gaughan was also known for keeping gas cans and jumper cables in his car, to help stranded motorists.
Gaughan was born in Omaha in 1920, earned an undergraduate degree as in business administration from Creighton University and went to work as a bookie. He later joined the Army Air Corps, which led to a fateful posting to Nellis Air Force Base during the Second World War. Stationed just outside Las Vegas, Gaughan began a love affair with Sin City that continues to this day. Although Gaughan returned to Omaha after the war, times were changing. Taxes on bookmaking parlors rose to 10%, which was more than Gaughan could afford. He moved his family to Southern Nevada, and wangled a small stake in the Flamingo, then run by mobster Dave Berman. When the latter called Gaughan a "dime-a-dozen punk," the Nebraskan up and quit.
He also shifted his focus to Downtown, where he began buying little bits and pieces of Downtown casinos, starting with 3 percent of the Boulder Club. The Las Vegas Club appears to have been his first big acquisition, in 1961, followed by – among others – the Western, built in 1970, and the Union Plaza, which opened the following year. Many of the casinos he once owned or was an investor in no longer stand and his final purchase, the Gold Spike (bought in 1985), recently had all its gamblers and slot machines kicked out by new owner Tony Hsieh.
But the El Cortez, bought in 1963, remains Gaughan’s signature property, the place player used to go to try the newest slots in town. It was also the site of one of his most famous handshake deals. Former owner Bugsy Siegel had obligated John Kell Houssels Sr. to provide lifetime accommodation to aging Mob man Irish Green. Gaughan didn’t have to honor the agreement – but he did for the rest of Green’s life. He also treated gambling as a family business. Wife Roberta Gaughan ran the count room at the El Cortez and reclusive son Jackie Jr. was general manager at the Union Plaza. Sadly, Jackie Sr, outlived his son, who died in 2002. (Gaughan was widowed in 1996, after a 54-year marriage.) Surviving son Michael has been very successful on his own, both at Coast Resorts and now at South Point. The tradition continues …
