Stardust Resort and Casino
The Stardust Resort and Casino was a casino resort located on along the Las Vegas Strip in Winchester, Nevada. The Stardust was conceived by Tony Cornero, and construction began in 1954. Cornero died in 1955, and the project was taken over by his brother. The Stardust had numerous creditors, and construction was stopped in 1956, when the project ran out of money.
Rella Factor, the wife of John Factor, bought the Stardust in January 1958, and finished construction. The Stardust opened on July 2, 1958, as the world's largest hotel. It had 1,065 rooms located across six motel structures, and included a casino. An adjacent hotel-casino, the Royal Nevada, became part of the Stardust in 1959, with its casino converted into Stardust convention space. A nine-story hotel addition was completed in 1964. The resort operated the off-site Stardust Country Club and the Stardust International Raceway during the 1960s, and in 1972, it became the first resort on the Las Vegas Strip to open an RV park for guests, a concept that proved to be popular.
After several ownership changes, Argent Corporation purchased the Stardust in 1974. Company executive Frank "Lefty" Rosenthal added a sportsbook in 1975 that would later become a popular attraction for the Stardust, and a model for future sportsbooks. In 1976, a state investigation found that a skimming operation was occurring at the Stardust and at Argent's other properties. The Stardust was sold again in 1979, to Al Sachs and Herb Tobman, both of whom had previously served as general managers for the resort. Another investigation determined in 1983 that skimming was occurring at the Stardust again. The Nevada Gaming Commission concluded that Sachs and Tobman had failed to prevent the skimming, and the men agreed to sell the Stardust.
The Boyd family purchased it in 1985, and would retain ownership for the remainder of the resort's history. The Stardust had been one of the few Las Vegas Strip resorts without a high-rise hotel tower, until the Boyds added a 32-story tower in 1990. The original Stardust motel structures were demolished around 2000, to make way for an expansion of the resort, although the nine-story tower was kept. In its final years, the Stardust included an casino and 1,552 hotel rooms. It was small compared to newer resorts on the Las Vegas Strip, and revenue fell during its last years.
Boyd Gaming announced in January 2006 that it would close and demolish the aging Stardust to build a new project, Echelon Place, on the site. The Stardust closed on November 1, 2006, and the two hotel towers were imploded on March 13, 2007. The resort had a popular roadside sign, which was given to the city's Neon Museum. Construction on the Echelon project was halted in 2008, because of financial problems caused by the Great Recession. Genting Group bought the Echelon project in 2013, and announced plans to finish it as Resorts World Las Vegas. It opened in 2021, after several delays.
The Stardust hosted numerous entertainers and shows throughout its history. At its opening, it debuted Lido de Paris, which featured topless showgirls. The show continued playing until 1991, when it was replaced by a modernized show known as Enter the Night. Wayne Newton was the resort's resident headliner from 2000 to 2005. Other entertainers who performed at the Stardust include Don Rickles, Tim Conway, Harvey Korman, Siegfried & Roy, and Steve and Eydie.
Due to the brand's lasting popularity, Boyd launched its Stardust Social Casino online game in 2020. The following year, Boyd partnered with FanDuel to launch Stardust-branded online casinos in Pennsylvania and New Jersey.
History
Construction and financial problems
The Stardust was conceived by Tony Cornero, also known as Tony Stralla. He and two partners applied for a gaming license in April 1954. However, the Nevada Tax Commission said that it would never grant a license to Cornero, who had previously engaged in illegal gaming operations. Despite the commission's unwillingness, Cornero would make repeated attempts to gain approval. Work on the hotel was underway in August 1954, using tilt up construction. Approximately 60 percent of bricklayers in the Las Vegas Valley were hired to construct the Stardust, leaving few workers available to build new school facilities in the area.The Stardust was scheduled to open in April 1955. However, a request for a gaming license was denied two months prior by the tax commission, which cited a policy that applications not be considered until a casino is one-third completed. Early on, the Stardust had more than 1,000 stockholders. Sale of the stock was banned in California in May 1955, as Cornero and his associates had been selling shares without a state permit. The Securities and Exchange Commission also alleged that Cornero had failed to file statements regarding Stardust stock sales.
Cornero eventually gave up on trying to receive a gaming license. Instead, he planned to lease the casino to a small group for $500,000 a month. The tax commission was concerned about the high rental cost, viewing it as an attempt by Cornero to get around his lack of a gaming license. Nevertheless, the group was licensed in June 1955, at which point the Stardust had 2,700 stockholders. A list of these individuals was to be provided to the Nevada Gaming Control Board for final approval, but this did not occur as scheduled, thus delaying the Stardust's planned opening on August 1, 1955. The opening was pushed back a month.
Cornero died suddenly on July 31, 1955, while gambling at the nearby Desert Inn resort. His death was considered suspicious, and an investigation was soon opened. Tony's brother, Louis Cornero, was named as the president and general manager of the Stardust. Louis Cornero was the mayor of St. Helena, California, and he only planned to remain with the Stardust until legal issues could be resolved. Construction shut down on August 1, 1955, amid a dispute with several labor unions. Work resumed the following month, and there were plans to have the resort opened by Christmas.
Frank Hofues, a Nevada hotel owner, agreed to lease the hotel rooms in November 1955. He also agreed to loan the project $2.5 million, with completion now expected by May 1, 1956. However, a class action lawsuit was filed on behalf of shareholders, challenging the loan by Hofues. Shareholders had been told by Tony Cornero that the resort could be completed for $4.5 million. The suit sought to have the Stardust placed into receivership, stating that borrowing an additional $2.5 million would not be in shareholders' best interest. Hofues died shortly thereafter, and it was later alleged that he had failed to refinance the Stardust as agreed. However, attorneys representing the Hofues estate said that his agreement had been terminated by the Stardust board of directors in June 1956.
The Stardust did not open as scheduled. In July 1956, creditors filed a petition to reorganize the resort, alleging that it owed $2 million in debt. The Stardust was 80-percent complete at the time, and it was alleged that there was no money left to finish construction, which would take another $1.2 million. A former member of the tax commission was appointed as receiver. Louis Cornero sought to regain control of the project, arguing that reorganization was not necessary to acquire construction financing. He also said that most of the creditors who sought reorganization were not eligible to do so. Stockholders alleged that Louis Cornero was incompetent in his position as president. The creditors' petition was ultimately approved.
In January 1957, several offers were put in by groups wanting to purchase and complete the Stardust. The Sheraton hotel chain was among prospective buyers for the resort, but eventually passed. United Hotels Corporation, which consisted of Desert Inn shareholders, also expressed an interest in buying the Stardust. By mid-1957, the Stardust had five prospective buyers, including Rella Factor, who was the wife of John Factor. Each buyer submitted a plan to pay off creditors, and Factor's was viewed most favorably. In November 1957, Factor and her group received court approval to take over the Stardust, with an opening expected around April 1, 1958. Factor paid $4.3 million for the resort, and took over ownership in January 1958. Construction of the Stardust resumed that month, after 18 months of inactivity.
Opening and early years
The Stardust opened at 12:01 p.m. on July 2, 1958. Attendees of the opening included Nevada governor Charles H. Russell, U.S. senator George Malone, and various celebrities such as Bob Hope, Milton Berle, and Ethel Merman. The Stardust continued to face financial problems after its opening. John and Rella Factor had agreed to pay off the Stardust's debt through monthly payments. However, a month after the opening, they requested a reduction in the amount of money to be paid out each month. Up to that point, the Stardust had more than $1 million in liens filed against it, and a local glass company filed a foreclosure suit against the resort later in the month. Also among the creditors were two attorneys, seeking payment after representing the first group of proposed casino managers in 1955.The Stardust's casino portion was managed by United Hotels Corporation, which also operated the Desert Inn. United Hotels took over complete management of the entire resort on September 1, 1958. United Hotels was renamed as United Resort Hotels in 1959, and the company continued to manage the Stardust hotel. The casino portion was now managed by Karat Inc., also consisting mostly of Desert Inn officials. The Desert Inn group took over ownership from the Factors in August 1962, after the Stardust exited reorganization. Investors from years earlier were soon reimbursed. Subsequently, the Teamsters Union Pension Fund made several loans to the Stardust. A nine-story hotel addition was completed in 1964. A year later, the Stardust was purchased by Lodestar, Inc., which consisted of major Desert Inn stockholders such as Moe Dalitz, who had affiliations with organized crime.
By the end of 1967, there were reports that Howard Hughes made a deal to purchase the Stardust for $40 million, although the agreement later fell apart. Negotiations were underway again in March 1968, despite monopoly concerns; Hughes already owned several other Las Vegas casinos. Hughes received preliminary approval from the Nevada Gaming Control Board, which stated that his purchase would not give him a monopoly on Las Vegas gaming. However, a federal antitrust investigation was launched days before the purchase would have been finalized. Hughes eventually dropped his purchase plans in August 1968. Nevada governor Paul Laxalt criticized the investigation and denied that Hughes' purchase would have constituted a monopoly.
In 1969, Parvin-Dohrmann Corporation purchased the Stardust from Lodestar for nearly $40 million. Parvin-Dohrmann, based in Los Angeles, also operated the Fremont and Aladdin resorts in Las Vegas. Parvin-Dohrmann was renamed as Recrion Corporation in 1970, and Al Sachs was chosen as the new general manager for the Stardust, after serving as the casino manager there. During 1970, NASA loaned a Moon rock to the Stardust for display in the resort. A fire broke out at the Stardust two weeks later. The Moon rock was secured, and 500 people were evacuated. A fireman was killed, and several guests had to be treated for smoke inhalation. Arson was ruled out as the cause of the fire, which began in a first-floor supply room full of flammable cleaning fluids.
In 1972, hotel company Hyatt began negotiations to purchase Recrion and its properties. However, Recrion soon canceled plans to sell the Stardust. Allen Glick, a San Diego developer, purchased the Stardust in 1974, using money borrowed from the Teamsters Union Pension Fund. Glick made the purchase through his company, Argent Corporation.
In 1975, concerns were raised that Argent executive Rosenthal was involved in the company's casino operations, despite not being licensed. In May 1976, the Nevada Gaming Control Board launched an investigation into a slot cheating operation at the Stardust, possibly dating back to 1968. Dozens of former and current employees were questioned as the board sought to determine their involvement in the operation. The investigation soon widened to look at Argent's other casino properties, leading to the discovery of a skimming operation at the resorts. It was among the city's biggest skimming scandals. Jay Vandermark, the Stardust's slot machine boss, oversaw the skimming. He disappeared once the operation was uncovered, and he was later presumed dead. Rosenthal was never charged in connection with the skimming.
By 1978, a special grand jury was formed to investigate organized crime connections with the Stardust. Glick grew tired of state and federal investigations regarding his casinos, and he announced in June 1978 that he would lease out and eventually sell the Stardust.