The Teamsters Central States Pension Fund served as the primary financing source for Las Vegas casino construction from the 1950s through the early 1980s. Controlled by mob-connected union officials, it provided loans that legitimate banks wouldn't touch.

The Origins

The Central States Pension Fund was established in 1955 to provide retirement benefits for Teamsters members in the central and southern states. Under Jimmy Hoffa's leadership, it became a tool for channeling union money to mob-controlled enterprises.

The Vegas Connection

When conventional banks refused to finance casino construction—viewing the industry as too risky and mob-connected—the Teamsters stepped in. The Fund financed the Stardust, Caesars Palace, Circus Circus, and dozens of other properties.

The Terms

Teamsters loans came with strings attached: inflated interest rates, kickbacks to fund administrators, and requirements to use mob-connected contractors and suppliers. Borrowers essentially shared ownership with organized crime.

"The Teamsters Fund built Las Vegas. Without it, most of these casinos would never have been constructed."— Gaming historian

The Federal Investigation

The Department of Labor investigated the Fund throughout the 1970s, documenting sweetheart loans, embezzlement, and mob influence. Allen Dorfman, the Fund's de facto manager, was murdered in 1983 before he could testify.

The End of an Era

In 1982, a federal consent decree stripped the Teamsters of pension fund management, transferring control to independent fiduciaries. This ended the mob's private bank and forced casinos to seek financing from legitimate sources—accelerating the industry's corporatization.