"I get the idea of building a new city, but why here?"
Charles "Lucky" Luciano now regarded Nair as his personal strategist, a brilliant mind full of novel ideas and corresponding countermeasures—exactly the kind of person who suited a mob boss like him.
"The reason is simple..."
Nair pointed at Reno on the map, then at Las Vegas. Both were along the railroad, part of the transcontinental line. In terms of access to the railway, there was no real difference. Whatever Reno could do, Las Vegas could as well.
When it came to leveraging the advantages of the railway, the two cities were equally matched. But Las Vegas had one overwhelming advantage—one that made it stand out in all of Nevada. It was an edge that far exceeded what Reno had to offer.
And this advantage seemed tailor-made for Las Vegas—no one else could benefit from it. For that, we have President Hoover to thank, along with one of his politically motivated infrastructure projects:
The Hoover Dam.
"What?" Luciano and Meyer Lansky looked completely baffled. "What the hell are you talking about?"
"Look at this!" Nair pulled out a newspaper showing that the federal government was planning to build a massive reservoir in Nevada.
This was the result of over a decade of continuous Republican governance. You've probably heard of the "Coolidge Prosperity." Back then, the federal government had plans to develop the West, and so proposals to tame the Colorado River ended up on President Coolidge's desk.
It was a huge project—on par with the large-scale hydraulic development of the Mississippi River basin. The U.S. federal government at the time had the vision and capability to carry out massive, inter-state projects across the country. Compare that to the federal government fifty years later, and it's like night and day—they were completely useless by then.
But let's not talk about the whole Colorado River project—just the Nevada portion. Since it was a Republican-controlled state and the federal government was also under Republican control, they were more than willing to favor Nevada a bit.
Building a massive reservoir there would bring cheap electricity, provide water to the arid and rain-starved Nevada, and even support California's agriculture and livestock industries. The benefits were endless.
Once the dam was complete and the public began to benefit, voters would naturally remember the good the Republicans had done—making it more likely they'd re-elect them.
Originally, this dam might have been completed in 1933, maybe even 1935. But the sudden outbreak of the Great Depression accelerated the plan dramatically.
Why? Political intervention.
President Hoover issued a direct order to break ground on the dam immediately and to finish it within a strict deadline. Such a massive project would consume tons of America's overproduced steel and cement and provide employment for tens of thousands—possibly over a hundred thousand—jobless citizens.
It pleased both capitalists and voters. With his approval ratings plummeting, Hoover was panicking. Anyone in his shoes would be. Saving America as a whole may have been impossible, but at least preserving Republican influence in Nevada? That was still doable.
Since the money was coming from the federal government to win back Republican support, why wouldn't it get approved? Hoover recently signed off on the immediate construction of the Hoover Dam. The project had already begun—surveying, road planning, geological inspections, and more.
"So you mean..." Lansky was starting to catch on.
"Exactly! Once the gambling city is built, it's inevitable that large numbers of people will flock there. Currently, nowhere in Nevada can support a population of hundreds of thousands with water and electricity—except Las Vegas. It's the only place likely to meet the basic requirements for a gambling metropolis within two or three years."
Nair, full of confidence, circled Las Vegas on the map with a pencil. Then he circled Lake Mead (he had to use the future name, since he didn't know what that section of the river was currently called), where the dam was being built, and drew a line connecting the two.
"Hmm..." Luciano studied the map closely.
"No wonder you're always listening to the radio and reading national newspapers. You're meticulous—I can't match that," Lansky said, taking off his glasses and genuinely admiring him.
After Nair's explanation, Lansky fully agreed—Las Vegas was the only place in Nevada fit to grow into a gambling city. The rest of the state simply lacked the infrastructure for a large urban population. Even Carson City in later years only had 40,000–50,000 people, for this very reason.
"So Mr. Luciano, you should immediately buy up all the land from the local Native Americans. I suggest avoiding any use of force—just hire them as casino security guards. That way, you can finish land acquisition quickly. The sooner, the better!"
"Hahaha! You're a natural-born businessman!" Luciano laughed heartily.
If they could wrap up the land purchases quickly, they could corner the entire Vegas market before anyone else. Even if they didn't make money during the first year or two of development, selling off land later would bring massive profits.
They could even hold on to some plots as a financial reserve for the gang. If the Italian mob ever took a heavy hit, they'd have a foundation to bounce back from.
"Go get Mario."
Soon Lansky returned with a middle-aged man. Luciano instructed him to take $300,000 to buy land from the Native American tribe in Las Vegas. He was told not to worry about spending all the money—just follow Nair's plan and move fast. Ideally, the land acquisition would be complete before Nevada's Gambling Development Commission officially announced Las Vegas as the chosen site.
The deal was generous: all Native American men would be given jobs; women, children, and elders would receive a monthly stipend of $15—more than most white industrial workers earned—ensuring peace of mind.
Mario was efficient. He grabbed a large leather suitcase and left immediately, taking a few guys with him.
Meanwhile, Nair's suggestion was submitted to Senator Heller. Since Luciano was his biggest backer, and Luciano wanted Las Vegas, there was no reason to object. After all, it was Luciano who'd be running the casinos—Senator Heller just wanted cash.
So, after a few days of deliberation, Las Vegas was officially announced as the site of the gambling city.