Was “Bugsy” Siegel Only Needed for the Race Wire?

Sure, we all know that “Bugsy” Siegel was an integral part of Las Vegas, and he helped speed-up the building of the Las Vegas Strip by a decade, but was he really only needed for the race wire?

In the 1930’s, after a dozen successful hits, “Bugsy” Siegel was Lucky Luciano’s prime button man, and he performed contract killings for several Mob families, including Al Capone’s Chicago group. Siegel’s talent kept him moving, until the gambling in Las Vegas and Los Angeles looked too good to pass up, and Luciano sent him west, to grab a piece of the pie.

Vegas was still a small town, but anywhere there was “open gaming” sounded good to the bosses back east. Reno’s casino owners were too tight with Nevada’s politicians to move in on, but Mickey Cohen’s gaming in Los Angeles was already bringing Chicago and New York bosses plenty of cash and he willing to be a partner with Chicago and New York, and take Siegel as a local partner, but “Bugsy” was greedy.

While he and Mickey were supposedly working together to take over the nationwide wire service (Continental Press Service), “Bugsy” and a number of friends were using high-powered binoculars to steal race-results and beat the local bookies (including Cohen’s).

Cohen and Siegel set up their own race wire service, Trans-America, with Siegel taking the lead in strong-arming new clients, and keeping whatever he thought he could of the cash. However, they still needed to get the Continental Press Service shut down, which never happened. The Chicago group eventually got to the current owner, James Ragen, Sr. in an ambush that left him filled with buckshot and bleeding profusely.

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He was taken to Michael Reese Hospital, but died three weeks later. His death was a surprise, since he had undergone successful surgery and was doing well. Apparently since the shotgun attack hadn’t killed him, the Chicago Mob moved to plan “B” – poison. His autopsy showed traces of mercury in his blood.

On June 13, 1947, Trans-America announced it was shutting down. Siegel was surprised to hear that the Continental was now a part of the Chicago Mob’s holdings and the West Coast profits were going to go directly to Mickey Cohen, he was out of the deal. “Bugsy” made enough enemies with the fiasco at the Flamingo (the $1.5 million project ran closer to $5 million to build), but once the race wire deal was Chicago's own,  he was an unnecessary piece of the family. Siegel was gunned down in Virginia Hill’s living room a week later, June 20, 1947.

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