Creator of the Flamingo Hotel and Casino

Bugsy Siegel | Biography

• By Stone Palmer
• Original : February 11, 2025

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Who is Bugsy Siegel?

Bugsy Siegel, born Benjamin Siegel on February 28, 1906, in Brooklyn, New York, became a significant figure in American organized crime. The son of Jewish immigrants, Siegel's early life was steeped in the criminal underbelly of Williamsburg, where he formed crucial alliances with notorious gangsters, including Meyer Lansky. Together, they established the Bugs-Meyer Gang, responsible for various illegal pursuits, including bootlegging and contract killings under the notorious code name Murder, Inc. Siegel's explosive temperament earned him the nickname "Bugsy," cementing his reputation as a volatile yet prominent player in the Mafia world, particularly during the volatile 1920s and 1930s.

In the late 1930s, Siegel turned his sights toward Las Vegas, where he aspired to create a gambling paradise amid the Nevada desert. Partnering with Lansky and other crime syndicates, he initiated the construction of the Flamingo Hotel and Casino, a venture that marked the beginning of his legacy in the world of casinos. Originally budgeted at $1.5 million, the project's costs ballooned due to Siegel's alleged embezzlement and mismanagement, drawing the ire of his criminal associates. On June 20, 1947, the culmination of his tumultuous life came violently; Siegel was murdered in a hail of bullets at his girlfriend Virginia Hill's home, purportedly on the orders of the crime syndicate due to his failures and financial betrayals.

Early Life and Education

Bugsy Siegel, born Benjamin Siegel on February 28, 1906, in Brooklyn, New York, emerged from humble beginnings as the son of Jewish immigrants. Growing up in Williamsburg, which was rife with crime, Siegel was exposed to the harsh realities of life at an early age. This environment fueled his inclination towards a life of crime, leading him to engage in petty extortion from peddlers on New York City’s Lower East Side. His early experiences with crime laid the groundwork for his future involvement in organized crime, as he found camaraderie in the streets.

In 1918, Siegel formed a significant friendship with Meyer Lansky, with whom he would later establish the infamous Bugs-Meyer Gang. This gang consisted of ruthless Jewish mobsters and became known for its connections to contract killings, a precursor to their later operations in organized crime. The bond Siegel formed with Lansky was pivotal in shaping his criminal career, as they collaborated to navigate the competitive and dangerous landscape of New York's organized crime scene. This partnership set the stage for Siegel’s eventual rise in prominence within the criminal underworld.

Career Start: Bugsy's Rise in Organized Crime

Bugsy Siegel, born Benjamin Siegel in Brooklyn on February 28, 1906, began his criminal career in the rough neighborhoods of Williamsburg. As a teenager, he honed his extortion skills, targeting local pushcart vendors. His early foray into crime led to a partnership with Meyer Lansky, and together they formed the Bugs-Meyer Gang, which engaged in various illegal activities, including robbery and murder. This marked the start of Siegel’s reputation as a ruthless player in the burgeoning world of organized crime, where he quickly made a name for himself within the Jewish mob.

In the early 1930s, Siegel's violent temperament earned him the nickname "Bugsy," and he became a significant operative for the New York Mafia, particularly under the wing of kingpin Charles "Lucky" Luciano. His pivotal role in the assassination of Sicilian gangster Joe "the Boss" Masseria in 1931 solidified his position in the ranks of organized crime. By the late 1930s, Bugsy transitioned to the West Coast, bringing his bootlegging and gambling enterprises to California. There, he expanded his influence through various criminal activities, establishing a luxurious lifestyle that intertwined with Hollywood's elite, setting the stage for his ambitious venture into Las Vegas and the creation of the Flamingo Hotel and Casino.

Success and Achievements: The Flamingo Hotel and Casino

Bugsy Siegel's most notable achievement is undoubtedly the establishment of the Flamingo Hotel and Casino in Las Vegas, which became a symbol of his vision for a thriving gambling empire. In the mid-1940s, Siegel secured funding from the Eastern crime syndicate to turn his dream into reality. The project initially budgeted at $1.5 million quickly spiraled out of control, eventually costing over $6 million. Although this financial mismanagement drew ire from his associates, the casino opened its doors on December 26, 1946, becoming one of the first luxury hotels in Las Vegas and paving the way for the city's future as a gambling mecca.

The Flamingo Hotel was more than just a casino; it was a lavish resort that attracted Hollywood stars and wealthy patrons alike, contributing significantly to Las Vegas’s transformation into a premier entertainment destination. Siegel's partnerships and the extravagant nature of the Flamingo set a standard for future casino developments in the area. Despite the shadow of his criminal background, Bugsy Siegel's role in Las Vegas history solidified his legacy as a pioneer of the casino industry. His vision and ambition laid the groundwork for the booming gambling industry that thrives in Las Vegas to this day.

Death: The End of a Notorious Life

On June 20, 1947, Bugsy Siegel's tumultuous life came to a violent end in a hail of bullets, a fitting conclusion for a man whose rise was marked by chaos and criminality. As he visited his girlfriend, actress Virginia Hill, at her Beverly Hills home, a barrage of gunfire shattered the tranquility, fatal rounds striking Siegel and sealing his fate at the age of 41. This brutal murder underscored the treacherous waters he navigated throughout his life in organized crime. Speculation surrounding his death suggested betrayal from within the ranks of his former allies, hinting at a power struggle among the East Coast crime syndicates he once collaborated with.

Siegel's murder was not simply the end of a life; it was a signal of the changing tides within the criminal underworld. As one of the original architects of the Las Vegas gambling scene, his violent demise represented a pivotal moment in the consolidation of power among mobsters, particularly as they sought to transform Las Vegas into the gambling capital of the nation. While his death stirred intrigue and speculation, it also highlighted the volatile nature of mob life where loyalty could swiftly turn to animosity. To this day, Bugsy Siegel remains a legendary figure in the annals of organized crime, forever marking the history of Las Vegas.

Personal Life: Marriage and Children

Bugsy Siegel married his childhood sweetheart, Esta Krakower, in January 1929. Their union produced two daughters, Millicent and Barbara. As Siegel's criminal activities intensified and his lifestyle became increasingly extravagant, the strain on his marriage grew. Esta faced the harsh realities of having a husband entrenched in the underworld and was further burdened by his infidelities, which marked their relationship. Despite their attempts at maintaining a family life, the social pressures and Siegel's notorious reputation ultimately took a toll on their marriage.

In 1946, after years of enduring Siegel’s philandering ways, Esta decided to end their tumultuous marriage. She moved herself and their daughters back to New York, distancing them from the shadows of Bugsy’s lavish yet dangerous lifestyle. Siegel continued to be a controversial figure, and his relationship with his daughters became strained as they grew older. Though Esta remained protective of her children, their lives would always carry the weight of their father's infamous legacy in organized crime.

Net Worth and Earning: Bugsy's Wealth

Bugsy Siegel, the infamous mobster known for his extravagant lifestyle and significant contributions to the gambling industry, amassed a considerable fortune through his various criminal endeavors. His involvement in bootlegging during Prohibition, alongside his operations in gambling and organized crime, provided him with substantial income. Siegel was a key player in establishing a national syndicate alongside gangs in New York City, leading to lucrative deals and opportunities that significantly boosted his net worth.

The apex of Bugsy Siegel's wealth came with his ambitious venture into Las Vegas, where he opened the Flamingo Hotel and Casino. Initially planned as a simple project with a budget of $1.5 million, the final cost ballooned to over $6 million due to Siegel's extravagant spending and alleged embezzlement. Although he aimed to create a glamorous gambling paradise, the financial mismanagement created significant tension with his crime syndicate partners, ultimately leading to his downfall. Despite his tragic end, Siegel's legacy lives on as a symbol of the opulent and treacherous world of organized crime in America.