America's LONGSTANDING CASINO CAPITAL: Las Vegas Secured the Title in the 1930s
Title: Sin City of the Midwest: The Hidden History of Gambling in Newport, Kentucky
Posted on: April 21, 2025, 08:02h.Last updated on: April 21, 2025, 10:02h.
Corey Levitan Read MoreGamingEntertainmentMidwest LoreIllicit GamblingNewport, Kentucky
For many, the term "Sin City" is synonymous with Las Vegas and its vibrant, neon-lit gambling scene. However, it wasn't always so. Few know that a different city once held the title, a city nestled along the Ohio River - Newport, Kentucky. Driven by organized crime, Newport became a hotbed for illicit gambling during the 1920s to '60s.
The Rise of Newport as a Gambling Hub
Contrary to assumptions, Las Vegas wasn't the first to legalize gambling in the US. The act was signed in Nevada only in 1931, while Reno had 21 casinos and Las Vegas just eight. But lurking in the shadows was another city with more—Northern Kentucky and its thriving, yet illicit, gambling scene centered around Newport.
The number of illegal casinos in Newport surged from 24 in 1941 to 90 by 1955, with Reno far behind at 15. Despite the absence of business licenses and advertising, the existence of these clandestine gambling dens was confirmed by researchers from Eastern Kentucky University.
The most popular illegal casinos in Newport included the Beverly Hills Club, the Primrose Club, the Yorkshire Club, the Lookout House, and the Flamingo. Famous establishments like the Tropicana, Stardust, and Silver Slipper would later emerge in the '50s and '60s, with the latter two illustrating the lax attitude towards copyright violations.
Newport's Golden Era of Entertainment
By the 1940s, Newport's population had swelled to 30,000, tripling during weekends. Names such as Frank Sinatra, Dean Martin, and Marilyn Monroe were associated with Newport, though their visits remain questionable due to the lack of reliable reports. The Rat Pack's performance in Newport cannot be substantiated, but Dean Martin did entertain guests at house parties organized by Frank "Screw" Andrews, owner of the Sportsman's and Alibi clubs.
Liberace, Milton Berle, and Steve and Eydie Gourmet were the most confirmed entertainers to have graced the stages of Newport's gambling dens. Even the movie Godfather II acknowledged Newport's gambling connection, as Hyman Roth mentioned supplying Pennino Brothers for casino operations.
The Origins of Newport's Sinful Reputation
Newport's transformation into a haven for vice was in large part due to Prohibition, which came into effect in 1920. To meet the continuing demand for alcohol, restaurateurs turned to bootlegging. George Remus, a Chicago-based attorney-turned-rumrunner, made Newport a prime location for this illicit activity, leveraging the loophole that allowed alcohol to be manufactured for medicinal purposes.
Most of the liquor was distributed through Cincinnati, in operations run by Organized Crime figures such as Al Capone and Meyer Lansky. With nearly all local police and government officials being on the mob's payroll, casinos and brothels sprouted up in nearly every back room.
The Arrival of Organized Crime
The Cleveland Syndicate entered the scene in 1936, effectively marking the beginning of a new era for Newport. They made an offer to purchase the Beverly Hills Club or form a partnership with its owner, Peter Schmidt. Upon Schmidt's refusal, his club was burned to the ground, and his niece was murdered.
Schmidt rebuilt and reopened his gambling den a year later as the Beverly Hills Country Club, which was promptly robbed. He subsequently approached another Toledo-based syndicate for protection, but they had ties with the Cleveland Syndicate and declined to intervene.
By this point, the Cleveland Syndicate had already taken control of the Coney Island Parkway racetrack, nine miles outside Newport. After Prohibition ended in 1933, their influence in Newport only grew stronger until it eventually displaced local independent casino entrepreneurs.
Newport's Decline and Modern Day
The erosion of Newport's sinful reputation began with the Kefauver Hearings in 1950-1951. As local, state, and federal governments tightened their grip on illegal gambling, the mob gradually lost its control over the city.
Key figures like Meyer Lansky and other members of the Cleveland Syndicate moved their operations to Las Vegas, where casino gambling was legal on paper, though skimming unreported income remained a common practice.
The decline of organized crime in Newport corresponded with a decrease in its population, which returned to around 15,000, similar to its size in 1870. The city today presents a stark contrast to its past, with a tranquil environment and no reports of celebrity visits. But its place in the history of American gambling will always be etched in the annals of vice and the rise of organized crime.
- In the 1920s to '60s, Newport, Kentucky was a hub for illicit gambling, pre-dating Las Vegas' legalized gambling scene.
- Contrary to popular belief, Nevada didn't legalize gambling until 1931; before then, numerous illegal casinos thrived in Northern Kentucky, primarily in Newport.
- By 1955, the number of illegal casinos in Newport had surged to 90, surpassing Reno's 15.
- Famous casinos like the Tropicana, Stardust, and Silver Slipper emerged in Newport in the '50s and '60s, with the latter two reflecting lax attitudes towards copyright violations.
- Dean Martin was associated with Newport, performing at house parties owned by Frank "Screw" Andrews, despite no confirmed reports of performances by Frank Sinatra, Dean Martin, or Marilyn Monroe.
- Liberace, Milton Berle, and Steve and Eydie Gourmet were among the most confirmed entertainers to have graced the stages of Newport's gambling dens.
- Newport's transformation into a vice hub was largely due to Prohibition, which prompted restaurateurs to distribute alcohol via bootlegging.
- The Cleveland Syndicate arrived in Newport in 1936, marking the beginning of a new era for the city, leading to the displacement of independent casino entrepreneurs and the rise of organized crime.
- The decline of Newport's illicit gambling scene began with the Kefauver Hearings in the 1950s, as governments cracked down on illegal activities.
- Key figures like Meyer Lansky moved their operations from Newport to Las Vegas, where casino gambling was legal on paper, although skimming remained common.
