The Untold Story of How The Mormon Mafia Built Las Vegas Into What It Is Today

The Church of Jesus Christ of Latter Day Saints has a fascinating history. From its founding in the 1820s by Joseph Smith to the its modern-day prevalence in Utah, the religion continues to intrigue believers and skeptics alike. Aspects of Mormonism are shrouded in mystery to outsiders - but would you believe that there are rumored ties between the mob and the LDS church?

Before your imagination goes into overdrive, know that the Mormon church isn't rife with organized crime. True, there are bizarre tales of Mormons and Howard Hughes; the eccentric billionaire's business holdings were controlled by the so-called "Mormon Mafia." And then there's the religion's roots in Las Vegas - Mormons built the first permanent settlements in the area, and were largely responsible for creating its mega casinos. But for all its ties to Sin City, the Mormon Church is actually as anti-mob as you can get.

The Mormon contingent was still relatively small in 1954, when the Mormon-dominated Continental Bank of Salt Lake City opened the Bank of Las Vegas. E. Parry Thomas, a Mormon-connected financial manager employed by Continental in Utah, was sent to run the new institution.

Thomas was the first banker to begin lending to casino operators. Whether these operators were actually criminals or not, they had an unsavory reputation due to their connections with gambling. When asked about the risk involved in dealing with such clientele, Thomas responded, "I’m in the banking business, and these people were good loans."

This decision lead to an increase in the size and number of Las Vegas casinos. Thomas also fought to change rulings to allow for corporate ownership of casinos. That meant the Securities and Exchange Commission would oversee the casinos, ensuring that any mobsters could no longer use them as fronts.

In 1905, the San Pedro, Los Angeles, and Salt Lake Railroad bought much of the property around the small town of Las Vegas. The rural settlement began flourishing thanks to the railway, and Mormons returned to the region. They set up homes in nearby Bunkerville, Mesquite, St. Thomas, and Overton, and eventually gravitated to Las Vegas, too. By 1930, they comprised almost ten percent of the Las Vegas population.

Mormons erected the first permanent settlement in Las Vegas. In 1855, they were sent by Brigham Young to establish an outpost halfway between Mormon missions in San Bernardino and Southern California. These representatives were also ordered to convert Paiute Native-Americans in the region.

However, the Mormon's first attempt to settle the region failed. Between failed crops and disagreements among group leadership, the settlement soon folded; the Mormons abandoned the fort by 1857.

E. Parry Thomas did more than arrange lucrative real estate deals. He also spearheaded a change in Nevada state law to allow corporations to own and operate casinos.

Up until the '60s, only individuals could be licensed to own or operate a casino. This was meant to identify exactly who was involved in ownership of a casino, and theoretically eliminate criminals and other undesirables from the industry. Unfortunately, the mob hired clean front men who merely concealed more sinister backers.

Thomas knew that corporate ownership would not only greatly increase the growth of the city, it would introduce the scrutiny of the SEC and further weed out underworld influence. The new law had massive repercussions for the city; as one historian put it, "Without it, Vegas would still be in the dark ages."

By the mid-'60s, Las Vegas was heavily influenced by individuals who were either members of, or associated with, the American mafia. Although Mormon businessmen had encouraged the growth of the sometimes-shady gambling business, they were concerned about the city's image. The solution: sell the mob-owned casinos to someone clean, like Howard Hughes.

Hughes's impromptu visit and casino buying spree was enabled by E. Parry Thomas, who officially acted as the buyer so that Hughes would not be gouged on the purchase prices and his involvement could remain a secret. By the time Hughes's identity as a major holder of Nevada casinos became public, the billionaire already owned over a dozen properties.

For more proof of the Mormon Church's power in Las Vegas, just look to politics. Berkley Bunker was appointed to the U.S. Senate in 1940 to fill a vacancy caused by the death of the office holder. Bunker, a native of Clark County, in which Las Vegas is situated, was the former speaker of the Nevada State Assembly and the first Mormon Senator from Nevada. More recently, Harry Reid represented Nevada in Washington DC.

Mormon politicians from Nevada tend to be conservative, and typically hold their offices for a long time.

In the 1940s and '50s, the mafia ran Las Vegas. Then, in the 1960s, Howard Hughes came to town. Hughes was a billionaire, a film producer, and an aviator. And, towards the end of his life, he was also an increasingly unwell man prone to erratic tendencies.

On Thanksgiving weekend in 1966, Hughes arrived in Las Vegas by train and took up residence at the Desert Inn. He stayed there for a month, never leaving his room, until the owner threatened to kick him out. In response, Hughes bought the hotel and continued to hole up on the top floor. From there, he bought up Vegas casinos left and right, snatching them from the mob. And, since Hughes refused to leave the Desert Inn, he had a team of executive assistants and advisors to oversee his business dealings. They were led by a man named Frank "Bill" Gay, a Mormon Hughes hired right out of UCLA. Like Gay, everyone on the team was Mormon. Together, they became known as the "Mormon Mafia."

Why Mormons? Hughes liked them because they didn't drink, smoke, or gamble, which meant that he could trust them not to succumb to the vices of Las Vegas and handle his business with discretion and integrity. 

In the late 1960s, Steve Wynn was a small-time investor in real estate and a minority owner of the Frontier Hotel. E. Parry Thomas became a mentor to Wynn, and helped him acquire his first big Vegas property, the downtown Golden Nugget Casino.

Wynn went on to acquire or build many of the city's most prominent casinos, including The Mirage, Bellagio, and Treasure Island. He remains one of the most successful and high-profile figures in the international gambling industry.

Traditionally, Mormons have opposed gambling as acquiring "money from the person who may be possessed of it without giving value received in return." But that hasn't prevented Mormons from helping turn Las Vegas into the largest gaming operation in the United States. In fact, many Mormons work in casinos in Las Vegas; the Church's stance seems to be "don't touch the dice."