Question of the Day - 30 November 2025

By the very nature of a Las Vegas casino losing its license, the reasons are "interesting."

The last thing the regulators want to do is close a major casino, throwing thousands of employees and management out of work, disrupting guests and those with reservations, and cutting off the flow of taxes. They don't even like to raid a joint, not exactly relishing the bad publicity it would engender, especially these days. Instead, the fines are getting substantial; in 2025 alone, the Gaming Commission collected $10.5 million from Resorts World, $8.5 million from MGM, $7.8 million from Caesars, and $5.5 million from the Wynn for various and sundry violations. 

But sometimes, especially in the good-old bad-old days, licenses had to be suspended or revoked by the state in order to keep the feds' grubby paws off of Nevada's pariah industry. 

The classic case was the Stardust, perhaps the signature Mob-era scandal, in which investigators discovered a long-running skimming operation. In December 1983, regulators issued an emergency order that effectively suspended the Stardust’s gaming operations. The property didn't close, but it was put under the supervision of a court-appointed overseer, while civil and criminal charges were prepared and a new owner found. 

Earlier, in 1964, the Silver Slipper was, in fact, partially shut down for cheating players with shaved dice. The Gaming Commission revoked the gambling license and agents closed the table games, though the slots were left running. The owner at the time was forced out and new owners were installed; only then did the Slipper casino return to normal. 

Earlier still, in 1957, a similar operation closed the Royal Nevada when it was accused of cheating table players by means of card mechanics; also involved were ties to people who didn't exactly qualify for licenses. The property closed and, being right next door, it was absorbed by the Stardust, whose problems were only beginning. 

In 1978–1979, a federal grand jury in Detroit convicted several Aladdin executives, including its general manager and entertainment director, for conspiring to allow hidden owners from Detroit and St. Louis mob outfits to benefit from the cash flow. Following those convictions, the Gaming Commission shut down the Aladdin’s casino in August 1979. Joe Dorsey, the subject of our biography Joe's Dash, was there that night as an agent from the Gaming Control Board; the details are covered in the book. However, just a few hours later, U.S. District Judge Harry Claiborne, claiming he had "special powers" as a federal judge, ordered the casino reopened “until a mob-free buyer could be found.” (Claiborne's "special powers" helped lead to his being impeached and convicted by the U.S. Congress after he was convicted of tax evasion.) 

Not all revocations have to do with cheating or mob ties; some are public-safety related. In July 2020, the state revoked the restricted gaming license (maximum 15 machines) for the Stateside Lounge in North Las Vegas for being a motorcycle-gang hangout after a gun fight in the parking lot (with 15 or so shots fired) resulted in the death of one of the shooters. The Lounge closed shortly thereafter and never reopened.

These smaller local revocations are much more common than those of major casinos, the "big-show" scandals with the most drama, publicity, and public records.