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“There was no business in Las Vegas – they had no money, no business.” “I got up the next morning, drove to Las Vegas and we met Mr. Hicks, from Los Angeles, wanted to use Grayson’s investment to buy the Frontier Club on Fremont Street, offered by owner Guy McAfee.

Nevada had legalized casino gambling in 1931, but the industry was slow to develop in Las Vegas. “He asked me to meet him in Las Vegas tomorrow at noon.” “Marion Hicks drove in, in Phoenix, asked me if I had $75,000 in cash, and I told him I could get it,” Grayson recalled in a 1983 oral history for the University of Nevada, Las Vegas. Courtesy of Las Vegas Review-Journal Archive Marion Hicks, along with John Grayson, built the El Cortez and opened it on November 7, 1941. Baker, turned up from Southern California.

In December 1939, Marion Hicks, one of Grayson’s partners (including Bennie Benson and George Perry) in the defunct Mt. Grayson, out of business, was at a loss – a casino expert living in Phoenix where gambling was unlawful, Mob-controlled and required juice and political payoffs to operate. But, according to Grayson, East Coast racketeer Benjamin “Bugsy” Siegel cut off Grayson’s access to the wire service transmitting race results. Released from jail, Grayson moved back to Phoenix, where he once ran several illicit gambling houses and later a horse race betting business with Chicago Outfit-connected bookmaker Gus Greenbaum. The state’s attorney general, Earl Warren, ordered all four floating casinos, lurking three miles out in the Pacific Ocean, closed down for good. Baker illegal gambling ship, was arrested with nine other crew members off the coast of Long Beach, California. The El Cortez, pictured during the Helldorado parade in 1946 or 1947, is still going strong as it celebrates its 80th anniversary.

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