Explain Why Casinos Started Using Funding from Illegal Sources Such

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The Answer is Organized crime's pursuit of illegal gambling operations in the major cities of the country became the focus of law enforcement. It became increasingly difficult to provide gambling activities. As a result, these underworld figures moved their money and expertise to Nevada. Frequently, they also moved to Las Vegas.Casinos used this source of funding because traditional sources were not willing to make loans or investments. The risk of casinos was twofold. First, the control of the cash and cash equivalents in order to avoid theft and embezzlement was a daunting task. In addition, a bad run of luck could have a substantial impact on profit. There were other industries with less operational risk. The second source of risk was the viability of the industry. Legalized gambling had only been legal since 1931. And the pressure exerted by the publicity of the Kefauver Committee was tremendous. There was no guarantee that gambling would remain legal. To invest or loan millions for a building which might sit without purpose for a few years was an unacceptable risk.In addition, the cost to build a casino which could compete with the existing casinos had risen considerably since Benjamin "Bugsy" Siegal's extravagant spending on the Flamingo. Crime syndicates were finding it increasingly difficult to invest and individuals rarely had adequate resources. It was becoming clear that other legitimate sources had to be found because the popularity of Las Vegas as a destination was increasing. By 1956, there were 9,000 rooms in southern Nevada. The Sahara, Sands, Dunes, and Riviera were added to The Strip. Several had expanded and hotel rooms in high rise towers were added to the motel rooms of the previous decade.

Explain Why Casinos Started Using Funding from Illegal Sources Such

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Explain Why Casinos Started Using Funding from Illegal Sources Such

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