![]() But they are frightened of the Federal authorities. They are at ease with local and state law enforcement. Since then the gambling operators have tried to stay out of interstate commerce. Federal officials believe this instruction prevented the jury from bringing in indictments. The grand jury was instructed that it should have evidence that the gambling profits moved into interstate commerce before it could find that evidence pointed toward a Federal law violation. This was an attempt to prove that the gamblers-illegally operating under Arkansas law-had violated Federal law by moving the checks through interstate commerce. Then witnesses were interviewed and some of those who said they bought gambling chips with their checks were brought before the grand jury. The case was presented as a violation of a statute of 1961 that forbids interstate commerce to further the operation of gambling places in states where gambling is illegal.įederal investigators compiled long lists of the checks cashed at the gambling places on accounts in banks outside Arkansas. The attempt was a failure because a Federal grand jury refused to indict. The Federal Government tried about 18 months ago to move against the proprietors of The Southern Club. Now he lives more or less in retirement, visiting almost daily with friends in The Southern Club. Madden came here on his release from Sing Sing in 1933, married an Arkansas girl, had an interest in all bookmaking carried on here, then control of a race‐wire service, visited with his friends when they came through either for the baths or to hide out, and once owned a part of one of the casinos. Madden for many years provided an argument for observers that gambling activities here had roots in other states. The Southern Club and the Vapors onerate all vear.Ĭhief Ermey, a native of Hot Springs, has been a policemanfor 30 years, and for most ofthat time his next door neighbor has been Owen Vincent(Owney) Madden, now 72 yearsold who was a major figure inthe prohibitionera underworldin New York. The two other major casinos are The Southern Club, a gambling institution that has existed almost continuously for nearly three‐quarters of a century, and The Belvedere, a casino operated only during the seven‐week racing season at Oaklawn Park, a horse track at Hot Springs. One knowledgeable source estimated that the biggest club, The Vapors, took in about $1.5 million last year and that the owners kept about a third of it after meeting expenses. Gambling provides about 500 jobs in Hot Springs, while the existence of the casinos attracts some of the two million persons who visit Hot Springs each year. Last week Mickey Rooney was a main attraction. One place pays up to $10,000 a week for the supper club entertainments that it furnishes in a frank imitation of the Nevada casinos. One Las Vegas Strip casino will win several times as much in a year as the total winnings of the three major casinos operated here.Įstimates of winnings here are difficult to get. The names of members of each group are well known to the officials who have control of law enforcement here.īy Nevada standards, the operation is small. The fellows who run the two big clubs were born and raised here.” “If there ever was any, I don't know of it. John Ermey, the chief of police, said of the question of outside interests: Whittington, the Garland County prosecutor. “The day anybody brings me any reliable information that the Mafia or any out‐of‐state people are involved in Hot Springs is the day I'll get on the radio and television and in the press and take the battle to the public to attempt to bring about a complete reform in Hot Springs,” said David B. Local officials and the gamblers themselves in Hot Springs insist that there is no connection with national underworld syndicates. It is difficult to feel that it is self‐contained.” “This is the largest illegal gambling operation in the United States. Hundley, chief of the Organized Crime Section in the Department of Justice, explained his interest this way: The only cloud on the horizon for the men who control these gambling and bootlegging operations is the interest of the Federal Government. Last month the investigations by Federal agents were stepped up, and top officials of the Department of Justice have announced that they intend to push still harder. The state liquor laws also are ignored in Hot Springs.
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