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Customers in attendance couldn’t stay at the hotel, but they did gamble. However, because they weren’t guests of the hotel, they were also free to take their winnings and leave. Although given the upscale, European atmosphere of the event, few Vegas locals went to the opening. This wasn’t the cowboy Vegas they were used to, so the event alienated them.In its first week open, the Flamingo’s casino lost $300,000THE HISTORY OF THE FLAMINGO HOTEL: POST-OPENINGOnly two weeks after the grand opening, the Flamingo closed. The following year, on March 1, 1947, the hotel-casino reopened as The Fabulous Flamingo. In the upheaval of the reopened resort, not everyone remained.In April, Siegel forced Billy Wilkerson out as a partner in the business. Siegel’s decision succeeded in bringing the Flamingo out of the red and into the black. In May of that year, the casino had a profit.However, for all his efforts, this Hail Mary couldn’t redeem Siegel in the eyes of his fellow mobster business partners. The mob interpreted the Flamingo’s mostly floundering business as proof that Siegel was stiffing them. To his partners, they couldn’t have been getting a “square count” from Siegel about the Flamingo’s profits. He had to be pocketing some profits for himself, and lying about the business’s troubles to cover his tracks.
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This suspicion was all but confirmed when the extreme hikes in the resort’s construction costs were traced back to Siegel. Not only had he mismanaged some of the construction funds, he’d also stolen some of their money. Meyer Lansky, one of Siegel’s oldest friends and a partner on the Flamingo Hotel project, was deeply angered by his friend’s deceit, theft, and betrayal.To make matters worse for Siegel, Lansky wasn’t the only mobster with a grudge against him. Lucky Luciano had loaned money to help build the Flamingo. After seeing the Flamingo’s terrible early business, Luciano had demanded Siegel refund his money. Siegel argued with the don, disputing his demands. In true mob fashion, the hit was outHE DEATH OF BUGSY SIEGELune 20, 1947, California. Bugsy Siegel spoke with an associate, Allen Smiley, in Virginia Hill’s Beverly Hills home. Hill was out of the country, in Paris, after a bad fight with Siegel on June 10.unshots. A barrage of bullets broke through the window, killing Siegel instantly.
