Casino 1995: How Scorsese Captured the Mob-Era Las Vegas

The motion picture Casino, released in 1995 and directed by Martin Scorsese, is based on the book of the same name by Nicholas Pileggi. The film examines the organized crime influence in Las Vegas during the 1970s and 1980s, using as its focal point the Stardust Casino and its general manager Frank Rosenthal, portrayed in the film as "Ace Rothstein."

The historical context is necessary for understanding the film's significance. In 1973, the Stardust Casino was owned by legitimate business interests but was controlled operationally by persons with connections to organized crime. Specifically, the casino served as a location where skim operations occurred. Skim is the practice of removing cash from gaming proceeds before that cash is recorded in the casino's accounting system. The cash is then diverted to organized crime figures.

Frank Rosenthal was hired as the casino's general manager in 1973. Rosenthal was a professional sports handicapper and betting expert. His role was to manage casino operations in a manner that would maximize both profits and skim opportunities. Between 1973 and 1978, approximately 7 million dollars was skimmed from the Stardust Casino, according to law enforcement records.

The Federal Bureau of Investigation conducted extensive surveillance of Rosenthal and the casino. Court records indicate that agents placed listening devices in the casino and in Rosenthal's residence. By 1978, the FBI had documented sufficient evidence of the skim operation to initiate prosecutions. In 1979, Rosenthal was called to testify before a grand jury. He refused to answer questions, citing the Fifth Amendment.

The Regulatory Response

The Nevada Gaming Control Board became aware of the skim operation through its own examination of casino records and through coordination with FBI investigators. In 1976, the Board initiated an investigation into whether Rosenthal should continue to hold a gaming license. Gaming licenses in Nevada require proof of financial honesty and freedom from mob connections. The Board determined that Rosenthal's operations did not meet these standards.

In 1978, the Gaming Control Board recommended that Rosenthal be denied continued licensing. The Nevada Gaming Commission affirmed this recommendation. Rosenthal was required to sever his operational relationship with the Stardust, though he retained a financial interest in the property.

Rosenthal's attempt to remain involved in casino operations thereafter is documented in court records. He was harassed by law enforcement. In 1982, his car was bombed. No one was prosecuted for the bombing, but law enforcement suspected it was retaliation by organized crime figures who blamed Rosenthal for FBI attention.

The film takes these historical events and dramatizes them. It depicts Rosenthal as a sophisticated operator caught between the demands of the mob, the scrutiny of regulators, and the instability of his personal life. The depiction is broadly accurate in terms of the operational realities of Las Vegas casinos during this period.

The regulatory framework that emerged from this period is the framework that persists today. Gaming licenses are not given to persons with demonstrated connections to organized crime. Casinos are required to maintain detailed accounting records. Regulatory audits are conducted regularly. The state gaming control board retains the power to deny or revoke licenses based on fitness and integrity requirements.

The film's depiction of the FBI surveillance is historically accurate. The FBI did maintain listening devices and conducted physical surveillance of Rosenthal. This was documented in later court proceedings. The casino's security operations' response to surveillance is portrayed accurately as well. Casinos employed anti-surveillance measures including counter-surveillance personnel and regular sweeping for electronic devices.

One significant historical element that the film portrays accurately is the regulatory state's eventual ability to constrain organized crime influence in Nevada gaming. By 1985, the skim operations that had characterized Las Vegas casinos in the 1970s had been largely eliminated. The reasons were threefold: federal prosecution of organized crime figures, state gaming regulatory improvements, and the business development of corporate casinos that had no connections to organized crime.

Corporate operators like MGM (now MGM Resorts) and Las Vegas Sands brought capital, professional management, and national reputations that were incompatible with organized crime participation. By the early 1990s, most casinos in Las Vegas were operated by corporations rather than by individuals with mob connections. The regulatory framework that emerged from the investigations depicted in Casino had largely succeeded by the time the film was made.

The film remains historically significant because it documents a period of transition in American gambling law and regulation. It captures the moment when state and federal regulators successfully constrained organized crime influence in a major American industry.