Howard Hughes' residency in Las Vegas (1966–1970) served as the primary catalyst for the corporatization of the gaming industry. By purchasing key properties through Summa Corporation, Hughes injected legitimate industrial capital into a market previously dependent on the Teamsters Union and organized crime.

The Arrival

In November 1966, Hughes arrived at the Desert Inn by train in the dead of night, taking over the entire top floor. When the casino's owners asked him to leave to make room for high rollers during the holidays, Hughes simply bought the hotel for $13.2 million. This began an unprecedented acquisition spree.

The Acquisition Spree

Fueled by a $546 million windfall from the sale of TWA stock, Hughes purchased the Desert Inn, Sands, Frontier, Castaways, Silver Slipper, and Landmark, eventually controlling 20% of Strip hotel inventory. His entry prompted the Nevada Gaming Control Board to relax licensing strictures, paving the way for the Corporate Gaming Act of 1969.

The Corporate Gateway

Hughes's presence emboldened the state to pass the Corporate Gaming Act of 1969, which removed the requirement for individual licensing of all shareholders, thereby allowing publicly traded companies to own casinos. Although his management team (the "Mormon Mafia") struggled with operational profitability, Hughes successfully displaced Mob ownership and prepared the regulatory environment for Wall Street investment.

The Legacy

Though Hughes himself lived as a recluse on the Desert Inn's top floor, rarely seen by anyone, his investment validated the gaming industry for legitimate capital. The era of mob financing was ending, replaced by corporate boardrooms and SEC filings.