Is Casino Gambling in the Cards for Galveston?

Backers says it can save the water-logged city, while opponents say it will bring nothing but ruin.

It might be tough times and diminished expectations now, but from 1918 to 1957, Galveston Island was known as a "wide-open" town, where prostitution, smuggling, bootlegging and gambling all flourished. Many remember the 1940s and early '50s as the glory days of "the Free State of Galveston," when the Balinese Room, brothers Sam and Rose Maceo's supper club/gambling spot, was the ace showplace of the whole Gulf Coast.

Today, many Texans envision that bygone Galveston as a sort of pre-Castro Havana of tequila-soaked tropical sin, cash and sex. While Hemingway swigged daiquiris at the Buena Vista Social Club to the tune of a Beny Moré bolero, here at the other end of the Gulf of Mexico, Peggy Lee was inspiring Balinese bartender Santos Cruz to invent the margarita and name it after his muse. It was not for nothing in 1947 that Life magazine, in a tone that mixed awe and scandal, called Galveston America's "last surviving sin city."

Glory days: Balinese co-proprietor Salvatore "Big Sam" Maceo pals around with famed pianist Carmen Cavallaro and Galveston Mayor Herbie Cartwright.
Courtesy of Rosenberg Library
Glory days: Balinese co-proprietor Salvatore "Big Sam" Maceo pals around with famed pianist Carmen Cavallaro and Galveston Mayor Herbie Cartwright.
Dolph Tillotson of The Galveston County Daily News thinks casinos could save Galveston, much as they did Biloxi, Mississippi.
Courtesy of Dolph Tillotson
Dolph Tillotson of The Galveston County Daily News thinks casinos could save Galveston, much as they did Biloxi, Mississippi.

The Balinese was the site of the most glamorous of 20th-century Lone Star State lore. You picture Howard Hughes staking the rights to a Hollywood blockbuster on one spin of the roulette wheel and Groucho Marx waggling his cigar and cracking wise at the craps table. Nearby, Dino and Frankie Blue Eyes are busting each other's chops over high-stakes poker with the Texas Big Rich, all while Duke Ellington takes a dance floor full of buxom Jayne Mansfields and debonair Cary Grants on a ride aboard the A-train.

What's more, it was all right on Houston's doorstep. Bill Cherry, a Galveston-born realtor, musician and armchair historian, conjures up the time when moneyed Houstonians picked up stakes and summered in Galveston. "Daddy caught the train to Houston every morning and rode back in the evenings. The kids, mom and grandma and grandpa played at the beach during the day. When daddy got back to Galveston in the evenings, the kids were babysat at the hotel, grandma and grandpa went to the bingo parlors and mom and dad went to the Balinese or Studio Lounge."

Today, those days are gone as gone can get. The law pulled the plug on Galveston's casinos in 1957, and last year Hurricane Ike reduced the Balinese — which in recent years hosted biker bands and dinner theater — to little more than splinters and driftwood. But many in Galveston believe that swingin' Sinatra-style Sin City on the Gulf can be resurrected.

This talk of a renaissance has brought about a lot of infighting. And as with any civil war, the casino debate pits friend against friend, brother against sister and husband against wife: One co-owner of a prominent Strand District building refused to comment in the interest of domestic harmony — her husband was pro and she was anti.

Leading the charge of the pro-casino brigade is Dolph Tillotson, president and publisher of The Galveston County Daily News. In a city that relies on Houston TV and radio, the town paper remains the city's most important news source, and Tillotson has plenty of clout in shaping local debate. And since Ike, Tillotson has put the casino pot on his front burner.

In October, with Galveston's roads still studded with nails and debris piles lining the streets, Allen Flores, president of the Strand Merchants Association, kick-started the discussion with a pro-casino letter to city officials. Flores claimed casinos would create jobs, boost middle-income housing, augment the tax base and help fund beach restoration. What's more, Flores wrote, the casinos' spillover clientele would spark a boom for Strand businesses, many of which are still shuttered and/or being rebuilt. Following the major staff cuts and relocations of thousands of jobs at downtown institutions like the University of Texas-Medical Branch, Flores asserted that the promise of casinos could give some Strand business owners the hope they need to go on.

Tillotson gave Flores's letter prominent coverage, and in the months that have followed, the newsman has penned several pieces of his own and shared his bully pulpit with numerous casino advocates (and a few opponents).

Some on the pro side have included members of Galveston's leading families of Golden Age fun and sin. One such was Tilman Fertitta, the Galveston-bred direct descendant of Sam and Rose Maceo's sister Olivia and president and CEO of Landry's Restaurants, Inc. The casual dining/Vegas casino mogul broke his silence on the casino question in the January 18 issue of the Daily News. "The time has come for Galveston's leaders to go to work to bring gaming to the island," he wrote. "The Legislature has convened, and Galveston can no longer run from this issue. We must at least get into the discussion — immediately." (Another of Fertitta's assertions — that the Island needed casinos whether or not he was involved — inspired one local wag to crack, "Yeah, and I only read Playboy for the articles.") Another, Fertitta's cousin Vic Maceo, envisioned a Texas-style Monte Carlo, with a high-class gaming district of one or two small European-style casinos, while a third — Tony Buzbee, a Friendswood attorney whose Strand-area law office was ruined by Ike— declared in the Daily News that he was morally opposed to casinos until Ike, after which he became morally unopposed (see "Is Casino Gambling in the Cards for Galveston?: Getting Up a Game").

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  • Donna DeCesare 07/26/2010 6:35:00 PM

    I agree with Dolph! Galveston needs the casinos to revive this island bring in more tourists with GOOD MONEY instead of going to Louisiana casinos!! We are residents of the West End and enjoy visiting casinos once in awhile...as a matter of fact we just returned form Vegas and stayed at the Golden Nugget! Tillman is doing an excellent job out there and hopefully he gets the chance to bring his expertise to Galveston. During the recovery after Ike the committee had a session at the convention center asking residents for ideas of what we would like to see on the island...I recommended a pier similar to the Atlantic City Boardwalk!! We are currently working on a pleasure pier at the Flagship hotel....Thanks for listening! Now I hope we can continue a boardwalk along the beach with stores resturants local activities and casinos!! Classy casinos only which will bring in GOOD MONEY to Galveston! Come on TEXAS residents we do not want more taxes!!! We want businesses and jobs !!!

  • WhiteSites 06/03/2010 12:45:00 AM

    Galveston's main product is and always will be tourism. Considering Vegas was built in the middle of the hot desert and has done very well, I don't see why Galveston couldn't be better and bigger. Only problem is the traffic on 45 to Galveston is already bad. They need to expand 45 and the Island to handle the traffic.

  • Bob Stevens 05/05/2009 8:02:00 PM

    Go to www.stopgalvestoncorruption.com. The city officials of Galveston are ALREADY corrupt, including the mayor lyda ann thomas.

  • crazzzeeej 04/28/2009 5:03:00 PM

    "The cards are on the table...", so to speak. Let them speak, they must. Post-Ike weariness and abandonment have left a once, major port city of Texas in ruin. The call for rebuild is strong. However, if the businesses and money have left the area with slow rebuild, this city faces unforeseen challenges and probable demise. Texans deserve the right to have gambling. All of our Texas gambling dollars pour into the hands of Louisiana's gaming industry and Texas lawmakers via the corrupt payoff from lobbyists. Let's keep Texas dollars here and keep Texas strong and working.

  • Bill Cherry 04/10/2009 6:26:00 AM

    Have you ever noticed that none of the stories about Galveston casinos of the past ever has the input of at least one member of the Maceo family? And rarely do people opine about the prospect of casinos returning to Galveston who actually lived there when they existed? On that front, it looks like Shrub Kempner and I are about it. There isn't an idea more doomed to fail Galvestonians AND the ultimate chosen casino owner/operators. After your series ran, I got a note from Slick Maceo's son. He thanked me for always telling the truth about his family and their history on the island. It's sad when a family's reputation is told in fables rather than truths. Nevertheless, the research and writing about the current rumbling was very well done. Thanks for that.

  • Raymond Guy 03/16/2009 8:49:00 PM

    Adolph Tillitson will back ANYTHING that brings him ad revenue. Casinos would be bigger gold than the beer distributors that he promotes doing 'alcohol education concerts' that advertise beer on highway billboards. There are few that could reap the benefits of casino gambling, those already wealthy enough to own big hotels = Adolph's pal Tillman. If there is no bad money Adolph, why not make Galveston Island a legal drug haven? Should Galveston make itself a unique gambling mecca that allows cock and dog fighting? That would bring in $$$. Hey, how about some nostalgic bare fist boxing? Why not legal brothels too? Or should we let the gambling underworld keep the prostitution money for themselves? The USA, as a whole, can not rely on zero production industries like gambling.

  • Maria Gonzalez 03/12/2009 6:08:00 AM

    Why the delay? Nice casinos would be great to help bailout Galveston. Casinos are great for attracting tourists and a surge of business development would spring up at the first sign of a casino. Galveston NEEDS gambling asap.

  • Franco Pierce 03/12/2009 5:56:00 AM

    Gambling is exactly what Galveston needs and no other idea would provide quicker or better relief. Casinos bring people with money as long as they are done in a quality manner. Gambling online is huge so its not like restricting casinos are going to keep people from gambling. Also, Texas has dog tracks and the lotto, so why not give Galveston a casino or two to recover from Hurricane Ike? It's dumb to believe that casinos would ruin Galveston. It's even dumber that Galveston doesn't have casinos already.

  • Susan Proctor 03/12/2009 5:47:00 AM

    Casinos in Galveston would be very cool! Nobody is going to be forced to go into a casino against their will. It's crazy for Shrub Kempner to forsee gloom and doom over a few casinos when the island just got crushed by a hurricane. Gambling would create a new excitement and new reason for Houstonians to rediscover Galveston! I'm not sure why Kempner gets so much credibility as an expert on tourism or crime. What was his plan before Ike? Good luck with the idea from 1900, that outdated remark speaks volumes about Kempners ideas. Bring on gambling so poor old Galveston can get back on its feet.

  • Betty Paige 03/12/2009 5:38:00 AM

    People need to understand that Galveston is a beautiful place that is centrally located as a perfect place for casinos. The problem with Galveston is that its too poor to clean itself and it looks dirty. Galveston is struggling and its downright irresponsible for people to pass up an opportunity to get the jobs that casinos offers. People are being outright dishonest if they don't admit that gambling is not happening all over Texas. Give Galveston a few casinos and let them thrive, that way gambling would be taxed instead of handled under the table. Is that what Kempner prefers....under the table gambling?

  • Anthony Saenz 03/12/2009 5:28:00 AM

    Kempner is a rich guy that does not have to worry about money. So why would he want a casino? He argues against casinos but what about all of the illegal game rooms in Texas that are crime spots? Casinos have high level management positions and create construction jobs that are also high paying. Galveston needs gambling because there is no more time to waste on old fashioned hollow dreams. Casinos are the only answer for Galveston and Houstonians would love it!

  • EddieC_Esq 03/09/2009 8:14:00 AM

    Kempner is wrong: many people have been discussing gambling along the Texas coast since gambling boats came to Louisiana. It is a BRILLIANT idea! As a matter of fact Corpus Christi and South Padre should enact it as well. Can you imagine the money this would bring in? Galveston needs it now more than ever. If poor Islanders can't get over the Causeway, what better jobs could come to them? They're not going to get on at UTMB. Why can't they be bussers and waitresses and cooks? And what about Texas City, Seabrook and Dickenson? You don't think those people would appreciate new jobs? Afraid all the profits are going to go out of state? Tax them. Make it part of the deal that they have to invest so much money in the local community. Funds could be used to rebuild the rail line between Houston and Galveston which would benefit not only the casinos, but also the cruise lines. For years people have complained that Vegas went from "Sin City" to "family vacation spot" yet the profits continued to flow. Why can't we do it here, but start out as the family vacation destination? If Galveston embraces it's history and plays up the ethos that makes the Island so unique, the casinos AND the local businesses would both make money. This is the perfect opportunity for leaders to do something great for the Island for Houston and for Texas.

  • EddieC_Esq 03/09/2009 8:13:00 AM

    Kempner is wrong: many people have been discussing gambling along the Texas coast since gambling boats came to Louisiana. It is a BRILLIANT idea! As a matter of fact Corpus Christi and South Padre should enact it as well. Can you imagine the money this would bring in? Galveston needs it now more than ever. If poor Islanders can't get over the Causeway, what better jobs could come to them? They're not going to get on at UTMB. Why can't they be bussers and waitresses and cooks? And what about Texas City, Seabrook and Dickenson? You don't think those people would appreciate new jobs? Afraid all the profits are going to go out of state? Tax them. Make it part of the deal that they have to invest so much money in the local community. Funds could be used to rebuild the rail line between Houston and Galveston which would benefit not only the casinos, but also the cruise lines. For years people have complained that Vegas went from "Sin City" to "family vacation spot" yet the profits continued to flow. Why can't we do it here, but start out as the family vacation destination? If Galveston embraces it's history and plays up the ethos that makes the Island so unique, the casinos AND the local businesses would both make money. This is the perfect opportunity for leaders to do something great for the Island for Houston and for Texas.

  • Sara Blount 03/05/2009 11:49:00 PM

    John, Amazing article.... you really did your research. Thanks for presenting such a well-written, balanced article. This is Mike Smith's daughter, Sara by the way.......

  • Zeon 03/05/2009 4:40:00 PM

    Casino gambling isn't in the cards this biennium. It's the third rail of Texas politics. Not many legislators will go on record supporting it. Besides, not only does it have to be approved by voters, there'd also be a local option vote in Galveston. Casinos perform poorly in recessions and since they want their customers to never leave the building, there's little economic benefit to existing businesses.

  • Zeon 03/05/2009 4:38:00 PM

    Casino gambling isn't in the cards this biennium. It's the third rail of Texas politics. Not many legislators will go on record supporting it. Besides, not only does it have to be approved by voters, there'd also be a local option vote in Galveston. Casinos perform poorly in recessions and since they want their customers to never leave the building, there's little economic benefit to existing businesses.

  • d 03/04/2009 11:20:00 PM

    casinos usually only bring in low-paying jobs (drive around atlantic city or vegas during daylight)...but anything is better than nothing, since there's not much risk of them displacing 'quality' employers on the island (who are they?)...ut medical will be leaving, i'd bet, within the next few years. it could be good if 'quality' developers worked together with city officials to make something very good. ...to offer some level of larger public good beyond $7.50 an hour jobs. is this too naive?

 

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