When it comes to finding the history of Las Vegas’s gambling industry, few places reflect that story as well as the El Cortez Hotel in the city’s downtown core.
In fact, the El Cortez, which is on the National Register of Historic Places, is the longest continuously running downtown hotel-casino in Las Vegas.
Built in 1941, the El Cortez hasn’t changed its appearance much over the decades. In fact, that’s a big reason the hotel is kind of a living historic landmark that offers a glimpse of the era in which it came into being.
At the time the El Cortez opened, there was no Las Vegas Strip and downtown Las Vegas was the center of the city.
Its original owners were Marion Hicks and John C. Grayson, the former a Los Angeles-based developer. The two spent about $325,000 constructing the property, which included 59 rooms, a 125-seat dining room, a casino, a cocktail lounge, bar and a beauty parlor.
Designed in a Spanish/Colonial Revival/Western influenced architectural style, the hotel, the city’s largest at the time, quickly became known as one of Las Vegas’ finest lodging houses.
In September 1943, Grayson sold his share of the hotel to Thomas Hull, who earlier had built the Hotel El Rancho on Highway 91 (which eventually became the Las Vegas Strip). Three months later, Hull sold out to Hicks.
The mid-1940s saw the hotel enter what was perhaps its most fascinating and notorious phase. That’s when Hicks sold it to a syndicate group headed by Edward Berman and Moe Sedway, two figures connected to organized crime organizations. Berman soon relinquished his ownership share and was replaced by another mob figure, Gus Greenbaum. Additionally, it is believed “hidden” ownership of the hotel included gangsters Meyer Lansky and Benjamin Siegel.
In March 1946, a new deed of trust was executed that identified the owners as Sedway, Raymond Salmon and his wife, and J.Kells Houssels Sr. and his wife. In July 1946, Sedway sold his interest in the hotel to Salmon and Houssels.
Between late 1946 and 1962, the El Cortez was managed by Houssels, one of the early gaming pioneers in downtown Las Vegas (he owned the Las Vegas Club and was an investor in the Boulder Club). Additionally, Houssels later invested in the Showboat and Tropicana hotel-casinos on the Strip.
During Houssels’ tenure, the hotel was remodeled into what the Las Vegas Review-Journal described as “Las Vegas Contemporary” that incorporated hidden lighting, more contemporary furnishings, murals and other decorative touches.
In 1962, Houssels sold the El Cortez to a group headed by gaming industry veteran John “Jackie” Gaughan,
For the next four decades, Gaughan was the public face of the El Cortez, actually living in a penthouse in the hotel and regularly playing poker at the hotel’s tables. Even after he sold his ownership of the hotel in 2008, he continued to live on site and play poker until his death at the age of 93 in March 2014.
While the El Cortez’ exterior is mostly the same as it was when it was constructed, the property has been renovated and enlarged over the years. In 1952, the façade was altered to include the property’s now iconic giant neon and metal sign promoting, “El Cortez Hotel, Free Parking.”
In 1984, the property was greatly expanded with the construction of a 15-story hotel tower adjacent to the original structures.
Of course, the best way to understand the hotel’s significance to Las Vegas history is to stop in and check it out. Perhaps a little cluttered and old-fashioned compared to the massive mega-resorts of the Las Vegas Strip, the place shouts out its historic roots.
In the past decade, the hotel unveiled a memorial—inside the casino—honoring longtime owner Jackie Gaughan. The exhibit offers more than 300 gambling artifacts used at properties once owned by Gaughan, including casino chips, dice, keno tickets, matchbooks, ashtrays and menus.
Over the years, Gaughan owned or had an interest in a number of Las Vegas hotels or casinos including the Gold Spike, Club Bingo, Las Vegas Club and Jackie Gaughan’s Plaza.