Notes - Blood Aces

October 20, 2025

PART ONE - THE ROLL OF THE DICE: 1904–1946

Chapter 1: SNIDES AND DINKS: AN EDUCATION

Benny's Origins and Health

Lester Ben Binion was born on November 20, 1904, in Pilot Grove, Texas. The family was not rich, living in a drafty clapboard house, and sometimes took in boarders. Binion suffered from pneumonia five times before he was five, sometimes coming perilously close to death, an ailment that may have been his "first great stroke of luck". Pilot Grove was destined to vanish; its commercial district was destroyed by a fire caused by a lightning bolt in 1909.

Early Education in Hustling

Binion’s father, Lonnie Lee, listed his occupation as stockman but was a wandering horse trader and "Kind of a drunk". His grandfather advised him, after leasing land to a farmer, "Don’t ever stick a plow in the ground". At age ten, Binion had only reached the second grade after four years of schooling when he left to ride the trails with his father. Binion later noted, "There’s more than one kind of education...and maybe I prefer the one I got".

The Art of the Horse Swindle

As a "roader" (roving livestock merchant), Binion learned how to cheat and avoid being cheated, operating on the assumption that any horse traded away was defective. He was skilled at gauging a horse’s age by inspecting its teeth ("mouthing of the mules"). Deceptive tactics used to hide horse infirmities (known as "snides and dinks") included:

• Giving medicine to mask "heaves" (equine respiratory disease).
• Soaking cotton in chloroform and stuffing it into the nostrils of excitable horses to make them docile.
• Putting pebbles in the ear of a sluggard to make it appear frisky.
• Puncturing the skin over sagging muscles of a "sweeney" (overworked) horse and blowing in air through a goose quill to make it look vibrant.
• Using "strategic staging," such as getting a horse on a high place while the customer stood on a low one, to hide flaws.

Gambling Apprenticeship

Binion developed his skills at monthly "trades days" (rural gatherings and markets). He soon began associating with "road gamblers" and learned how to cheat through marking and crimping cards. He became a "steer man," recruiting nervous customers who needed an outlet for their energy. Binion claimed he was "never a real good poker player" himself, but from an early age, he was always an operator, learning that the "properly run house always turns a profit".

Bootlegging in El Paso

Around age eighteen, Benny Binion went to El Paso, a center for smuggling during Prohibition. He attempted lawful work (spreading gravel with mules) but soon procured his own stock of illegal whiskey, realizing that his employer was bootlegging from a parking booth. Binion was arrested for bootlegging at least once. After one collar, he was made a trusty, got the jailer drunk, made a copy of the key to the evidence vault, and stole a truckload of liquor. He summed up this period with the declaration, "I wasn’t to be fucked with".

Chapter 2: THE BUMPER BEATER

Arrival in Dallas

Binion left El Paso for Dallas at age nineteen, noting that the city was "one of the best towns that I ever seen" for a young man with larceny and business sense. He was no longer a yokel, sporting a dark suit, shiny cap-toed shoes, and a fedora. Dallas, despite its superficial veneer of progress, openly accepted vice, exemplified by the existence of Frogtown, a legally sanctioned zone for whorehouses. Dr. W. W. Samuell, a prominent physician and civic benefactor, was one of the chief brothel property owners, netting up to $50,000 a year on his investment.

The Whiskey Business

Though Prohibition was the law, whiskey flowed freely in Dallas. Binion established himself as a middleman (importer-distributor) in the illegal liquor trade, connecting hidden country stills to undercover city saloons. Much of his corn liquor came from Roger Young's network of stills near Fairfield, known as "Freestone County Moonshine," which was prized for its potency and relative purity (lacking adulterants like lye or lead). Despite Binion's claims that he never made money bootlegging because he was always losing inventory or paying to get associates out of jail, the Youngs became wealthy due to his cash business. Binion faced arrests for liquor violations and for carrying concealed firearms (a pistol and a sawed-off shotgun).

Frank Bolding's Murder

Binion’s need for self-protection was underscored on a warm October evening in 1931 when he confronted Frank Bolding, a black whiskey seller, in a backyard on Pocahontas Street. Binion believed Bolding had been stealing his liquor. Binion shot Bolding dead, claiming Bolding had threatened him with a knife. A Dallas County grand jury declined to indict Binion for the murder.

Chapter 3: PANCHO AND THE KLAN

Policy: The New Gold Mine

Binion quickly recognized that numbers (policy) gambling offered greater promise than liquor traffic. In 1928, he started a policy game, initially with $56, and made $800 on the first day. He had "strolled into a gold mine". Policy operations featured white owners (like Binion) and primarily non-white customers.

Enforcing the Policy Racket

Binion focused his operations in Deep Ellum, a thriving black neighborhood east of downtown. His headquarters was the Green & White Café, run by his lieutenant, Ivy Miller. Miller, who was white, once shot a black woman in the stomach during a scuffle, for which he was not charged. Binion employed black runners who collected betting slips and sold "dream books" (guides for picking numbers based on dreams). To ensure discipline, Binion dealt with a bagman who tried to steal extra cash by putting a pencil through the man's eye. However, Binion also provided trucks of apples and oranges during Christmas, which were sometimes the only gifts the neighborhoods received.

Stance on Race and Violence

While Dallas was rigidly segregated and the Ku Klux Klan was active (authorities once refused to investigate a Klansman acid attack on a black man who had slept with a white woman), Binion explicitly distanced himself from the Klan, stating: “I don’t believe...in hanging my customers”.

Mentorship and Tragedy

Binion idolized Warren Diamond, a successful, patrician gambler known as "the first big dice fader" (one who covers bets) Binion ever knew. Diamond, who was generous to the down-and-out, famously accepted any bet size; Binion recalled seeing him cover a bet of $172,000. Diamond, suffering from prostate cancer, committed suicide in 1934 by shooting himself in the head in his second-floor bathroom after checking out of the sanitarium. Binion grieved but saw the event as an opportunity to move forward, following his lifelong maxim: "Make the best out of every situation".

Binion also faced family tragedy when his younger brother and partner, Jack, who was wild and restless, died in a car crash in 1934. Jack had previously lost an eye after being shot by police during a botched robbery attempt. Binion's mother died seven months later from grief. Binion deeply mourned Jack, naming his first son after him and keeping his clothes in a trunk for three decades.

Marriage

In 1933, Binion married Teddy Jane Henderson, the sixteen-year-old daughter of a bootlegging druggist. To avoid waiting, they drove 110 miles to Ardmore, Oklahoma, to marry.

Chapter 4: GOOD FRIENDS AND A DEAD RIVAL

Top O’Hill Terrace

Binion expanded his reach by investing in Fred Browning's highly elegant, but illegal, casino and brothel, Top O’Hill Terrace, located between Dallas and Fort Worth. Binion lent money and ultimately held a 50% interest.

• The casino was heavily fortified, requiring visitors to pass a massive iron gate manned by armed guards.
• If law enforcement breached the gate, an alarm triggered sliding doors, allowing gamblers to escape through underground tunnels dug by Chinese workers. Employees would then fold the gambling tables into walls, hold Bibles, and sing hymns.
• The casino featured high rollers, movie stars, and dancers like Ruth Laird's Texas Rockets. Notorious criminals Bonnie and Clyde were once seen there but were "out of their league".
• Binion displayed his characteristic generosity, insisting that the dancers be paid quickly, noting, "They need the money".
• After Clyde Barrow was killed, Binion hired an airplane to drop a floral wreath over the grave, making him look like the most "grandiose" rackets man in town.

Political Protection

Binion strategically cataloged people to know who was loyal, who was cutthroat, and who needed a payoff. His most intimate relationship was with Dallas County Chief Deputy James Eric "Bill" Decker, the "heart and brains" of the sheriff's office. Binion boasted, "Me and him was just goddamn good friends" and that Decker "had never bothered me in my operations no way, shape or form," though he insisted he never bribed Decker.

The Freiden Assassination

In September 1936, Binion found that rival policy operator Ben Freiden was still operating despite a previous warning. Binion and his heavy, Harlis E. “Buddy” Malone, spotted Freiden in his car on Allen Street. Binion slapped Freiden, calling him "You son of a bitch...You’re a sucker in the business". Binion fired his .38 pistol, hitting Freiden three times "right in the heart," while Malone also fired a .45 pistol. Freiden was hit seven times, though he managed to get off one shot. Binion quickly surrendered to his friend Bill Decker at the county courthouse, using a minor wound (a "bullet scratch") to claim self-defense. The press immediately reported the event as "Gangland War" and a "Chicago gang execution". Witnesses (referred to as "Frightened Negroes") subsequently claimed they had seen nothing.

Chapter 5: THE THUG CLUB

The Southland Syndicate

Following the murder of Freiden and the vacuum left by Diamond's suicide, Binion aimed to control the dice business. Initially blocked by Bill Decker, Binion got his chance when Dallas authorities temporarily stopped enforcing gambling laws to boost civic revenue during the Texas centennial competition with Fort Worth. Binion established his operations at the Southland Hotel (secretly suspected of being owned by mobster Carlos Marcello). His operation became known as the Southland Syndicate, controlling or operating over ten gambling spots, and taking a 25% rake from competitors for "the price of peace". Binion attracted a clientele of professional gamblers and politicians; the Dallas County district attorney was a regular.

Enforcement and Extreme Violence

Binion surrounded himself with toughs, notably Lois Green, Jim Clyde Thomas (a professional hit man), and Johnny “Brazil” Grisaffi. Green was Binion’s most valued enforcer, the leader of "Lois Green’s Boys" or the "Forty Thieves," known for armed robbery and violence. Binion supplied the overall strategy and extracted his percentage.

• After Green and Grisaffi robbed narcotics, Binion arranged for them to eliminate the two robbers who had helped them, Ray Sellers and Red Cavanaugh, to avoid splitting profits.
• To make an example of Otto Freyer, who had robbed his games, Binion ordered Green: “Shoot the s.o.b. in the guts and bury him alive...It will be a tonic to any of the others who want to be hijackers”. Green followed instructions, shooting Freyer with a shotgun, rolling him into a grave, and covering him with dirt and quicklime, successfully stopping further robberies.

Chapter 6: SHOOT-OUTS AND PAYOFFS

Sam Murray's Public Assassination

Binion continued to consolidate power by eliminating rivals. In 1940, Binion’s associate, Ivy Miller, shot and killed rival gambler Sam Murray in broad daylight on Commerce Street. Miller fired an automatic pistol; a wild shot struck a 16-year-old boy in the leg. Murray returned fire, missing Miller. Despite the public nature of the attack, Miller was released after claiming self-defense.

Payoffs and Corruption

Although authorities would conduct occasional "show raids," gambling continued freely because the proper bribes were paid. An FBI Crime Survey noted that "All gambling establishments...pay a weekly fine to the city of Dallas". After police closed Binion's Southland Hotel casino, Miller paid a $50 fine, and the dice were rolling again within hours. Binion minimized this corruption, claiming, "There wasn’t no graft...We helped the city out".

Raymond Loudermilk's Elimination

Raymond Loudermilk, once Binion’s trusted lieutenant, began planning his own games in partnership with Herbert Noble, further angering Binion. On March 19, 1943, Binion’s henchman Bob Minyard shot Loudermilk in his car outside the Ambassador Hotel. Minyard was indicted, but was later murdered himself (likely in retaliation by Noble).

Chapter 7: THE MOB WAR IS JOINED

Binion's Power and Luxury

By the mid-1940s, Binion's syndicate had "complete control of all rackets in the Dallas area". He was an absentee landlord, delegating to Ivy Miller and Harry Urban while spending weeks at his 73,000-acre Montana ranch. His chauffeur was a large man known as Gold Dollar (Perry Rose). Binion and Teddy Jane lived a wealthy life on Northwest Highway and had five children.

Escalation with Herbert Noble

The persistent "nagging problem" was Herbert Noble ("the Cat"), who had successfully established his own dice games but refused to "bow down" to Binion. Binion continued to target Noble.

• In May 1948, Binion associate Lois Green fired a shotgun at Noble as he drove over the cattle guard at his ranch.
• In January 1946, Binion’s killers (Minyard, Green, and Grisaffi) chased Noble on a dark highway, firing a sawed-off shotgun and hitting Noble in the hip. Noble survived by crawling under a farmhouse porch.
• Noble's men retaliated two days later by killing Binion heavy Slim Hays.

Murder of Mildred Noble

Noble decided to leave gambling to buy a legitimate airfield, news his wife, Mildred, greeted with joy. On November 29, 1949, Noble took his wife’s Cadillac, and Mildred drove his black 1949 Mercury. When Mildred pressed the starter, nitroglycerin gel hidden behind the dashboard detonated. The explosion could be heard eight miles away, leaving Mildred's body "bloody, blackened, and shredded". Noble, distraught, viewed what was left of his wife and vowed vengeance against the "kill-crazy man" (Binion) behind the plot, though he refused to name him. Police suspected Binion's money bankrolled the assassination, with a bounty up to $50,000.

Chapter 8: “LIT OUT RUNNING”

Political Heat Rises

Binion's luck turned as law enforcement pressure mounted.

• Sheriff-elect Steve Guthrie, bankrolled by Herbert Noble ($15,000 contribution), vowed to end organized crime.
• District Attorney Will Wilson aggressively vowed to prosecute dice game operators.
• Paul Roland Jones, a Chicago mobster, attempted to partner with Guthrie to run Binion out of town, confirming that Bill Decker was "a pay-off man with Benny Binion". This sting operation by Texas Rangers recorded the conversations.

Flight to Las Vegas

Binion realized his political protection had "done played out". In December 1946, he fled Dallas for Las Vegas.

• He drove a Cadillac with up to $1 million in cash in the trunk.
• He recruited bodyguards R. D. Matthews (described by the FBI as a "burglar, armed robber, narcotics pusher, gambler, murderer") and Al Meadows. They were armed with Thompson submachine guns.
• Binion described his ignominious departure: “I just went to hollering...and lit out running”. He saw it as a temporary retreat, knowing a man sometimes has "no choice but to give ground".
• He joined the "mob diaspora of the 1940s," arriving in Nevada (where gambling was legal) as the modern version of Las Vegas was being born.

PART TWO - DEATH AND TAXES: 1947–1953

Chapter 9: MOBBED-UP PILGRIMS

The Mob Diaspora to Nevada

Binion's flight west replicated the historical American archetype of fleeing the past and seeking a fresh start. Less majestically, it mirrored a great migration in American organized crime history, as mobsters from across the country (New York, Chicago, Cleveland, Miami, etc.) moved to Nevada to escape competition or pressure from law enforcement.

Las Vegas's Foundations

Las Vegas was initially a "broad desert basin". Its first major boost came from the construction of the Hoover Dam (then Boulder Canyon Dam) starting in 1928, bringing thousands of workers and federal funds. Because the workers lived in the federally controlled Boulder City where drinking and gambling were prohibited, they flocked to Las Vegas. The legalization of gambling in Nevada in 1931 was the critical moment for modern Nevada.

The Strip and the Visionaries

The lonely road south of town (Highway 91) was christened "the Strip" by Guy McAfee, the former Los Angeles police vice squad commander who fled L.A.'s clean-up efforts. Las Vegas became known as "a sunny place for shady people". The people who knew how to operate casinos were outlaws. Benjamin "Bugsy" Siegel, though often credited, did not fully create modern Las Vegas. He bought into the Flamingo project, taking it over with mob cash and installing grand appointments like fine Italian marble. Siegel, who was known for his volatile temper, was murdered soon after the Flamingo's opening. The city's founding fathers included:

• Gus Greenbaum: A bow-tied bookmaker from Arizona, described by Binion as "A heck of a good man".
• David Berman ("Davie the Jew"): A mobster from Minnesota with a past including kidnapping.
• Moe Dalitz: A syndicate heavyweight from Cleveland who helped build the Desert Inn.
• Moe Sedway: Known as a "ruthless dwarf," he assumed a role at the Flamingo after Siegel's death.

Chapter 10: TEXAS VS. VEGAS

The Cowboy Arrives

Binion, the "Cowboy," contrasted starkly with the polished, tailored East Coast mobsters. He was perpetually disheveled, wore unpressed trousers and shirts with gold coin buttons, and spoke with a nasal twang. He purchased a large, seven-bedroom, stone-and-log house on West Bonanza Road for $68,000 cash, which had previously been used as an apartment house for women fulfilling their six-week divorce residency.

The Las Vegas Club Killing

Binion acquired an interest in the Las Vegas Club on Fremont Street. The casino was described by Binion as "a old, run-down kind of place". In 1947, Binion associate Clifford Duane Helm (a former rodeo champion known to be ready to settle arguments with a handgun) killed fellow Binion henchman Johnny Beasley, a drug addict and former rodeo hand. The killing occurred in the club's equipment room. Helm claimed self-defense, alleging Beasley tried to stab him with a dull Boy Scout knife. Harry Claiborne, the Clark County District Attorney, was convinced the mob was ruining the town. He famously ordered the club padlocked. At trial, two FBI lab technicians provided testimony that Helm had planted evidence, finding silk fibers matching Helm's tie on his knife (not Beasley's knife). Helm was convicted of first-degree murder and sentenced to life.

Aftermath and the "Railroad"

Helm’s death was a "humbling lesson" for Binion in the different dynamics of Las Vegas. Warden Arthur Bernard, who became friends with Helm in prison, was convinced Helm was innocent. Bernard learned from the head of the state parole board, Ted Cupit, that Claiborne and police detectives had secretly taken Helm's knife and tie from the courthouse and planted the tie threads on the blade to clinch the case. Despite his bitterness over his friend being "railroaded," Binion hired Claiborne as his lawyer, believing that one must not let personal feelings interfere with business needs. Binion stated, "I didn’t know there was a goddamn law that said you had to fall in love with your lawyer".

Chapter 11: “A KILL-CRAZY MAN”

Continued Feud and Financial Maneuvering

Teddy Jane Binion was homesick for Dallas, causing her husband to make "secret trips" back. Binion’s primary legal threat came from Dallas DA Will Wilson and assistant Henry Wade, who launched a strategy to work their way up to the top man. Binion acted as a broker for organized crime, arranging $4 million in loans from prominent Dallas bankers (including Republic Bank) to Las Vegas mobsters (including Moe Dalitz to build the Desert Inn). Binion took a 5% cut ($200,000) for this service.

The Hunting of Noble

Herbert Noble survived two more murder attempts in 1948, bringing his total to five. The fifth attempt involved Binion hit men Jack Nesbit and Jim Thomas, though no charges were filed. Noble was nicknamed "the Human Clay Pigeon" and "the Cat". In late 1949, Noble negotiated to buy an airfield, hoping to go straight. His wife, Mildred, was overjoyed. On November 29, 1949, Mildred started Noble’s car, igniting nitroglycerin gel hidden behind the dashboard. The explosion killed her instantly. Police suspected Binion’s money, noting the bounty for killing Noble had risen to at least $20,000, and possibly $50,000. Noble, consumed by grief, called the person responsible "a kill-crazy man" who was "1,500 miles from Dallas". Noble subsequently descended into paranoia and insanity.

Retaliation and Raids

Noble retaliated: one of his gunmen shot Binion associate R. D. Matthews in the eye while he slept; Matthews survived but lost the eye. Noble’s crew successfully ambushed and killed Binion's chief assassin, Lois Green, who was ambushed while sitting in a car. Dallas police, led by Chief Hansson and DA Wilson, launched raids on Binion’s North Texas operations, finding records detailing Binion's continued control of the local numbers racket. The papers showed Binion, the "absentee landlord," taking up to 66% of the gross, estimated at over $1 million a year. Noble was wounded again on New Year’s Eve 1949, shot by a high-powered rifle. After surviving a sniper attack in his hospital room (attempt eight), Noble vowed to take the law into his own hands.

Chapter 12: “TEARS ROLLING DOWN THE MAN’S EYES”

National Shame and Mob Skimming

The continuing violence in Dallas attracted national media, with the Denver Post calling the city a "hell-broth" of crime. The Kefauver committee highlighted the skimming in Las Vegas casinos. Mob bosses like Meyer Lansky siphoned millions off the top before reporting income. Susan Berman, daughter of mobster Davie Berman, recalled helping count cash: "Three for us, one for the government, two for Meyer [Lansky]".

The Shimley Ruse

Harold Shimley, a con man claiming to represent Davie Berman, met with Noble to broker peace. Shimley arranged a fake long-distance call to Binion, during which Binion (1,500 miles away) feigned innocence and friendship. Shimley told Noble that Binion showed "tears rolling down the man’s eyes" over Mildred's death. Shimley later confessed the call was a ruse and that Binion had offered him $25,000 to kill Noble.

Noble's Napalm Plot

Lieutenant Butler discovered Noble loading bombs, including one filled with napalm, onto his Beechcraft biplane. Noble planned to fly to Las Vegas, guided by a map Shimley gave him, and drop the bombs on Binion’s house to kill him and his family. Butler secured the bombs, but Binion, having been warned, fled with his family to California in a Cadillac, disguised in a blue blazer and no hat, carrying a shotgun concealed in a golf bag.

Chapter 13: THE BENNY BRAND GOES NATIONAL

Convictions and Setbacks

Dallas DA Wilson continued his legal pressure. Harry Urban, Binion's lieutenant, was convicted and sentenced to four years based on evidence that one of his policy games grossed over $733,000 but reported only $23,000. Urban's home and his Cadillacs (which had custom-made holsters) were sold. Binion's federal tax case stalled after Assistant Attorney General Theron Lamar Caudle, who had promised DA Wilson a prosecution, was fired and convicted for conspiracy to defraud the government. Despite the political respite, Noble suffered two more murder attempts (10 and 11): his plane exploded on startup, and a subsequent inspection revealed nitroglycerin gel packed into the cylinders of another plane. Noble then prepaid his own funeral.

The Horseshoe is Born

In May 1951, Binion and his son Jack purchased the closed Eldorado Club on Fremont Street for $160,000. He remodeled it and named it the Horseshoe. The Nevada Tax Commission initially rejected his license application. Binion admitted to bribing people in the past, noting "It takes a pretty good man to make you bribe him".

Chapter 14: THE CAT’S LAST DAYS

Noble's Last Stand

On August 7, 1951, Herbert Noble stopped his black Ford at his mailbox outside his Diamond M Ranch. Noble was sitting directly on top of explosives—nitroglycerin, dynamite, and blasting caps—that had been buried there by three of Binion's killers. When Noble reached for his mail, a wire was grounded, setting off the explosion. The blast ripped the car apart, creating a five-foot crater. Noble’s body was destroyed below the shoulders. Nearby, next to a piece of his straw hat, lay two playing cards: a joker and the ace of diamonds.

The Grand Opening

Binion was paged at a Las Vegas restaurant. When told Noble was dead, he said: "I’m glad he’s dead". He later denied involvement, claiming "I just don’t give a damn". The Horseshoe Club opened seven days after Noble's death. The mayor cut the ribbon draped over a shotgun. The Horseshoe introduced the first carpet downtown and prominently displayed a million dollars in $10,000 bills. Binion boasted he immediately won the $18,000 cost of the carpet back from the carpet owner who was gambling there. The Nevada Tax Commission subsequently granted him a provisional license. Binion later confessed: "They was on the take". In the fall of 1951, Dallas Lieutenant Butler and Ranger Crowder questioned Binion about the murder in the Horseshoe restaurant. Binion was "cool and collected" and denied everything. He admitted his current partnership with Monte Bernstein was a sham: "It was clear that Binion ran the place".

Chapter 15: “THEY WAS ON THE TAKE”

The Horseshoe's Model

Binion had a net worth exceeding $2 million. The money flowed so fast at the Horseshoe that staff piled cash on the floor. Binion's successful business model was to treat small customers like big ones, offering "good food cheap, good whiskey cheap and good gamble". He managed his enterprise primarily from a restaurant booth, using a table telephone.

The Great Poker Match

Binion sought to bring card players to his casino and created a legendary high-stakes poker marathon between two superstars: Nick "the Greek" Dandalos (a sophisticated poet and gambler) and Johnny Moss (a self-educated Texas hustler). The tournament was supposedly a spectacle that lasted months, generating massive publicity for the Horseshoe, and ultimately becoming a founding myth for modern poker.

Chapter 16: “NO WAY TO DUCK”

Federal Prosecution Begins

DA Henry Wade, determined to pursue Binion, had assistant Bill Alexander investigate homicides, but Alexander found witnesses were too afraid or loyal to testify. Despite weak evidence, U.S. Attorney Frank Potter convened a federal grand jury, which indicted Binion for tax evasion due to his notoriety. Potter agreed to a non-prison plea deal, but DA Wade wrote a letter to the Justice Department calling it a "mockery of justice". U.S. Attorney General James P. McGranery took personal control, ordering the plea withdrawn. McGranery was convinced Binion was a "big-time racketeer" and that the case would "get publicity to keep the smoke screen to cover up their own damn doin’s" (in reference to recent federal corruption scandals).

Chapter 17: THE GREAT BONANZA STAKEOUT

FBI Failure and Binion's Fun

Federal authorities, after the plea deal fell through, sought to arrest Binion. FBI agents set up surveillance across the street from Binion’s Bonanza Road home, but the operation was easily spotted. Binion's children mocked the agents by leading them on car chases. A second surveillance attempt involved Binion leaving his house in a powerful 1952 Cadillac Imperial Sedan driven by Gold Dollar. Gold Dollar drove at 85 mph, shook the trailing FBI cars by turning onto a dirt road, and successfully evaded them in a cloud of dust. Hoover called the failure "atrocious". FBI agents finally caught up with the Cadillac near Lubbock, Texas. Binion confronted the agents, smilingly admitting he had spotted them from the start and had gone off-road "just for fun." He offered the beleaguered agents a ride to Dallas, which was declined. Binion voluntarily surrendered in Dallas, where he was photographed with Sheriff Bill Decker.

Chapter 18: “WHACKED AROUND PRETTY GOOD”

Sentencing and Imprisonment

Facing overwhelming federal evidence and a prepared prosecution, Binion pleaded guilty to four counts of tax evasion in San Antonio in September 1953. To raise cash and save his license from being revoked (due to his felony conviction), Binion "sold" 97% of the Horseshoe to Joe W. Brown for $858,000—a mere "fiction" to satisfy regulators. Brown, a seemingly clean New Orleans gambler, held the license, while Binion sold actual shares to mob figures like Meyer Lansky and Gerry Catena. At sentencing in December 1953, Binion asked for leniency, claiming ignorance. Judge Ben Rice sentenced him to five years in federal prison. Binion also pleaded guilty to state gambling charges, receiving a concurrent four-year sentence. U.S. Attorney General Brownell ordered Binion sent to the infamous federal prison at Leavenworth, Kansas. Binion felt he had been "tricked all the way around by the government" into pleading guilty, believing he could have won at trial. The Noble murder investigation finally stalled when the blind Denton County Sheriff Hodges was killed in a traffic accident. DA Wade later publicly admitted he likely would have failed to convict Binion on the state gambling charges anyway. Binion began plotting his "resurrection," relying on his belief that "There ain’t no such thing as luck. It’s unseen talent".

PART THREE - THE RIDE BACK HOME: 1954–1989

Chapter 19: THE FIREMAN GETS RELIGION

Leavenworth Confinement and Transformation

When Binion arrived at Leavenworth, Kansas, the prison—known as the "Castle"—was described as a bleak landscape. Initially, Binion was deeply distraught, appearing with dirty, uncombed hair and a blank gaze. Doctors found he had limited reading and writing ability (IQ of 89) and "moderate obesity". He complained that the prison-issued shoes were too tight, as he was deprived of his custom-made cowboy boots for the first time in decades.

He was able to stabilize his emotional state but continued to worry about his finances, estimating his net worth at $800,000, with $600,000 in debt. His wife, Teddy Jane, was planning to sell the family home.

Binion’s time in prison led to a physical and spiritual transformation. He lost 20 or 30 pounds. He secured a preferred position in the fire department dormitory and was promoted to assistant lead fireman, a role that required little actual labor and allowed him to use empty fire extinguishers to smuggle hard-boiled eggs for barter. Binion, whose family was religious, completed a religious education course, was baptized a Catholic, and attended Sunday services faithfully. A monk's book of little sayings gave him the insight: "Don’t censure no man for his shortcomings. We’re frail creatures". He received steaks smuggled into the prison via a priest's briefcase, paid for by Teddy Jane during visits. His conduct was considered "outstanding" by the warden.

Life Without Benny

Meanwhile, back in Las Vegas, the Horseshoe was renamed Joe W. Brown’s Horseshoe Club. Brown removed Binion's name from the chips and put his own name on the casino paraphernalia. However, Brown executed Binion's idea of installing a big plastic horseshoe displaying $1 million in $10,000 bills to attract tourists.

The Binion family struggled with financial issues: Teddy Jane canceled her plans to sell the house, leading to cash-flow problems, and she had to cut the lawn herself, wearing a diamond ring and high heels. Visits to Leavenworth involved long bus trips and public frisks by guards, which upset the children.

Political Fallout and Family Trouble

Despite Binion's incarceration, Attorney General Herbert Brownell continued to use Binion’s conviction as a public example of the Justice Department's anti-racketeering success, keeping the case "hot" and maintaining pressure on the parole board.

The family suffered further trauma when Binion’s oldest daughter, Barbara Binion Fechser, only twenty-two, was arrested for organizing a gang of robbers. They robbed her ex-boyfriend and planned to hold up wealthy Las Vegas figures like former lieutenant governor Cliff Jones and Sands co-owner Jake Friedman.

Binion later claimed he was "absolutely glad" he went to the penitentiary because when he returned, he noticed his youngest daughter, Becky, walking strangely. He persisted in his concern until Teddy Jane took Becky for an X-ray, which revealed a cyst in her thighbone that was ready to burst, which would have ruined her leg.

Chapter 20: STRIPPERS AND STOOGES

Probation Officer's Dual Role

Binion’s friends pressured the parole board for his release, arguing he had served enough time and his family needed him. Hubert A. Boyd, the chief U.S. probation officer for Nevada, wrote an "extraordinarily impassioned" plea, stressing that Binion was one of the best-liked individuals he knew and that his guidance was "essential" for his children.

This unusual support was clarified by an internal investigation that found Boyd had a second, lucrative job: he was the chief of security at the Horseshoe casino. Law enforcement officials in Las Vegas considered this arrangement acceptable, noting that a "peculiar" set of legal guidelines held sway in Nevada.

Financial and Ranch Crises

Binion's tax problems resurfaced, with the government claiming he owed an additional $467,619 for the early 1950s. Binion's lawyers struggled because Binion had maintained almost no financial records and his memory required "constant reference by him to his former employees, business associates and friends".

The Montana ranch suffered a severe drought, leading to cattle deaths and the theft of up to five hundred head. Binion temporarily halted dealing with his tax and parole issues to travel to Montana with Jack and Brenda to personally round up wayward livestock on horseback.

Reclaiming the Horseshoe and Becoming an Informant

To raise cash to pay his taxes, Binion borrowed money from mob-connected sources. He approached Ed Levinson, a Meyer Lansky associate who was using the Horseshoe as a cash spigot. Levinson's crew was skimming heavily—$700,000 annually from the Horseshoe and $3 million to $4 million total from various Strip casinos. Skimmed money was shipped out of town, sometimes in suitcases by armed couriers or hidden in the sleeves of laundered shirts, often destined for numbered accounts in Geneva, Switzerland.

The FBI, intrigued by the prospect of mapping the mob’s cash network, sought to develop Binion as a confidential informant. Binion was receptive, telling agents the FBI was the only law enforcement agency he trusted, despite his lifelong antagonism toward the bureau. Binion provided tips, though mostly on minor crimes. He also confessed that the public story about Joe W. Brown owning 97 percent of the Horseshoe was false.

On March 2, 1960, the FBI closed its "Top Hoodlum" investigation into Binion and converted him to a Criminal Informant. This dual role—working for the FBI while maintaining criminal connections—was a continuation of Binion's lifelong strategy of manipulating authorities.

Chapter 21: CHARLIE, ELVIS, AND THE REVOLUTION

Integration and Segregation

During the 1960s, Las Vegas struggled with civil rights, forcing the integration of casinos after a threatened NAACP march. However, the Horseshoe was slow to comply with integration. The casino's formidable black security guard, Gold Dollar, made the NAACP hesitant to challenge Binion directly, allowing Binion to integrate on his own timeline.

Buyback and Reorganization

Under Attorney General Robert F. Kennedy, the Justice Department was intensely focused on seizing mob-controlled casinos. Binion leveraged this federal pressure on Levinson and his mob associates. In 1964, Binion mortgaged the Montana ranch and borrowed nearly $2 million to buy back the Horseshoe.

Due to his federal felony conviction, Binion could not hold a license, so his son Jack became the official licensee while Benny served as the "director of public relations"—though he maintained absolute control, stating, "Them boys mind me like they was six years old". Binion immediately restored his policies: cheap, good food (like Montana beef), and the $1 million cash display.

Binion briefly returned to custody in 1965 to serve the remainder of his Leavenworth sentence (less than two months) at the Clark County Jail.

Political Influence and Hughes

Binion used his informant status to detail a meeting where he and Levinson convinced Senator Howard Cannon to derail Senate subcommittee hearings on electronic surveillance, thus protecting the gamblers.

In 1966, the recluse Howard Hughes moved into the Desert Inn. When the mob owners demanded he leave, Hughes simply bought the casino. Binion considered Hughes' presence "good for this town" because he spent so much money.

The Shumate Murder and Charity

Binion continued to build his image as a philanthropist, making large donations to local Catholic organizations, hospitals, and private schools. He engaged in personal charity, such as handing out free hamburgers to children behind the casino.

In 1967, an informant exposed a plot by cabdriver Marvin Shumate to kidnap and kill Ted Binion. Benny Binion did not contact the police. Shumate was later found murdered—shot with both a shotgun and a .357 handgun. Police suspected Binion ordered the hit but could never prove it.

Birth of the World Series of Poker

As downtown Las Vegas began to look faded next to the opulent Strip casinos, Binion sought an attraction. Drawing on poker's strong cultural foundation among professional gamblers, he conceived of a high-stakes tournament to draw high rollers and spectators. He called it the World Series of Poker (WSOP).

Chapter 22: ANOTHER ONE BLOWS UP

The World Series of Poker

The WSOP began attracting high-caliber players, known as the Texas Circuit, including Doyle Brunson and Johnny Moss. The tournament was changed to a winner-take-all format, with Moss winning the first two titles. Binion secured Jimmy "the Greek" Snyder to handle publicity for free; Snyder promoted the tournament in 7,000 newspapers, earning network coverage on shows like Wide World of Sports. This advertising was a massive benefit for the Horseshoe.

The popular variant played was No Limit Texas Hold’em, described as an "art" relying on psychology and aggression, which provided high entertainment value for spectators who gathered near the velvet ropes. Binion’s goal was simple: "to lure them inside and take their money" at the casino tables later.

The Second Car Bombing

In the summer of 1972, Binion entered acrimonious lease negotiations with William Coulthard, a lawyer who owned 37 percent of the Horseshoe property. Coulthard was killed by a car bomb that detonated when he started his vehicle.

Homicide investigators noted the similarity to the Texas car bombings and questioned Binion. Binion denied any involvement, claiming he wasn't mad at Coulthard, and suggested Coulthard's partners—who also disliked his lease demands—were the likely killers. "I ain't saying who blowed him up. I know I didn't," Binion stated.

The Lamb Trial

Binion testified as a star prosecution witness in the tax evasion trial of his friend, Sheriff Ralph Lamb. Binion admitted giving Lamb $30,000 but insisted it was a "loan" with no interest or repayment schedule. He famously told federal agents that he kept no records because, "The last time I kept records, you assholes put me in Leavenworth". Binion's testimony successfully derailed the government’s tax case against Lamb, as borrowed money is not taxable income.

Chapter 23: HEROIN AND THE HIT MAN

The Horseshoe Power Lunch

By 1979, the Horseshoe restaurant was the hub of Las Vegas power. Lawyers (like Oscar Goodman), judges, politicians, and police gathered there, often watching Binion hold court with his closest friend, Judge Harry Claiborne, who kept a $100,000 stash in the casino vault and cashed his personal checks there.

Family Life at the Casino

Benny and Teddy Jane had left their Bonanza Road home fully furnished and moved into separate rooms at the Horseshoe hotel. Binion disliked Teddy Jane's four-pack-a-day cigarette habit, which he blamed for the death of their small dog. Teddy Jane, who handled the cashier's cage, often went to the counting room late at night to find comfort by sorting and stacking silver dollars.

Ted Binion and High-Stakes Crime

While Jack Binion was the hard-working executive, Ted Binion was highly intelligent but undisciplined—a math whiz who was addicted to black tar heroin. Ted often ran the night crew, used the casino cage to launder drug money, and associated with notorious figures.

Ted was connected to Texas drug smuggler Jimmy Chagra, a heavy gambler known for staking $1 million in minutes. Chagra, facing trial by the harsh Judge John Wood ("Maximum John"), met hit man Charles Voyde Harrelson at the Horseshoe. Harrelson subsequently murdered Judge Wood.

The Blevins Homicide Fix

In 1980, Ted Binion was implicated in the fatal shooting of Rance Blevins. Although three witnesses eventually implicated Ted, prosecutor Dan Bowman stated that the witnesses "mysteriously changed their story" overnight and pointed to a security guard instead.

The security guard, Walt Rozanski (represented by Goodman), pleaded guilty to manslaughter and received probation. Ted Binion "walked". Bowman believed Benny Binion used his "juice" and money to fix the case for his son. Rozanski later denied receiving money but hinted at remaining silent due to fear of "murderous revenge".

Chapter 24: U-TURN AT THE GATES OF HEAVEN

The Binion Brand

Public relations specialist Henri Bollinger decided Benny Binion was the essential "brand" for the WSOP. Binion was mythologized as a "folk hero" and a "throw-back to the Old West". When British writer Al Alvarez profiled Binion in The New Yorker, he cemented Binion’s image as a "genial, round-faced, round-bellied man, like a beardless Santa Claus in a Stetson". Binion became a massive tourist draw—the "approachable racketeer," an affable killer, and a real-life pirate attraction.

Renewed Federal Heat and Family Losses

The new FBI director, Joseph Yablonsky, aggressively targeted corruption at the Horseshoe and the close ties between Binion and Judge Harry Claiborne. Local media, led by Binion loyalist Hank Greenspun, vigorously defended the locals and successfully painted Yablonsky as an overzealous outsider.

Binion’s personal life deteriorated: his daughter, Barbara Fechser, died of an overdose in 1984. His son Ted’s drug problems and association with a cocaine smuggling ring continued to grow, which daughter Brenda said "broke Daddy's heart".

Binion himself began struggling with severe heart problems. After receiving an experimental drug, his health stabilized. He reflected that he had tried to repent for his past deeds, but, "There's some of it I can't repent. I've tried, and I just can't".

Presidential Pardon Denied

Binion launched a renewed campaign for a presidential pardon from Ronald Reagan in 1984, sending the president $15,000. The Justice Department, however, opposed the pardon, citing the Horseshoe's role in recent criminal investigations, including that of Judge Claiborne. Reagan denied the application in 1986.

Binion’s public response was defiant; he famously vowed to outlive Reagan and "piss on his grave". However, the denial was a deep disappointment, leading him to characterize the event as throwing "three on the dice"—crapping out.

Chapter 25: “THEY DO THINGS LIKE THAT”

Private Justice at the Horseshoe

The Binions rarely called police for issues of theft or cheating; instead, they managed problems internally, in the manner of an illicit Texas dice room. Cheaters were often given private threats and severe punishments. Ted Binion told one customer who was seeking stolen money, "You’ve got three choices. You can die and be buried in the desert, spend the rest of your life in an insane asylum or you can forget about it and be happy".

The Finn and Brown Beating

In 1985, gamblers Barry Finn and Allan Brown were caught "hole carding" (cheating) at a blackjack table. Horseshoe guards, led by Binion’s grandson, Steve Fechser, took the men to a security room and beat them severely with a wastebasket full of canes.

District Attorney Bob Miller (who had received $30,000 from the Binions) initially obstructed the investigation, refusing to issue a search warrant for the Horseshoe, claiming a policy against serving warrants at hotels. When a warrant was obtained, the surveillance videotape for the day of the beating had vanished.

The Fixed Trial

Miller declared a conflict of interest, passing the case to the attorney general's office. The trial was overseen by Judge Tom Foley, who was a friend and former lawyer for the Binion family. Foley praised the defendants and Harry Claiborne (who defended one of the guards). The judge later halted the trial and acquitted Fechser and the other guard, claiming the victims were the "bad guys". The prosecutor accused Foley of fixing the case.

A subsequent appeal was stalled because the court reporter mysteriously "lost" the transcript tape for years, cementing the fix. The victims settled a civil suit for $675,000. Bob Miller, the DA who protected the Binions, was later elected lieutenant governor and then governor of Nevada.

Chapter 26: HAPPY BIRTHDAY, DEAR BENNY

Final Wealth and FBI Pursuit

By 1987, the Horseshoe was generating over $60 million in net profit. Jack Binion expanded the operation by acquiring the adjacent Mint Hotel for $27 million. Binion himself often traveled to his Montana ranch, which had grown to 85,000 acres. Reflecting on his life, he noted he left Texas "with two mules and a wagon... and come back in a Rolls-Royce".

In 1989, federal authorities launched Operation Benny Binion, a top-priority strike force aiming to prove money laundering at the Horseshoe, primarily targeting Ted Binion. The ultimate goal was to seize the entire casino. The FBI planned a sting using an informant and $100,000 in government money.

Death and Last Victory

Binion's health rapidly declined in 1989 due to heart problems and lung cancer. He died in his Horseshoe apartment on Christmas Day 1989, at age 85.

Binion’s death meant Operation Benny Binion lost its biggest target, and he thus beat the FBI one last time.

His funeral procession was led by the Horseshoe stagecoach (used for advertising) pulled by six black horses, proving he was promoting his business until the very end.

The Legendary Status

Two years before his death, Binion's family had thrown him a massive 83rd birthday party at the Thomas & Mack Center (UNLV arena), featuring Willie Nelson and Moe Dalitz. The massive crowd chanted, "Benny! Benny! Benny!". He had successfully transformed his bloody and guileful history into a celebrated legend, becoming "the most beloved gangster of them all". His bronze likeness was later cleaned and installed at an equestrian center, gazing toward the gambling floor.