By: History.com Editors

1947

Bugsy Siegel, organized crime leader, is killed

History.com Editors

Published: November 13, 2009

Last Updated: February 18, 2025

Benjamin “Bugsy” Siegel, the man who brought organized crime to the West Coast, is shot and killed at his mistress Virginia Hill’s home in Beverly Hills, California. Siegel had been talking to his associate Allen Smiley when three bullets were fired through the window and into his head, killing him instantly.

Siegel’s childhood had been pretty similar to that of other organized crime leaders: Growing up with little money in Brooklyn, he managed to establish himself as a teenage thug. With his pal Meyer Lansky, Siegel terrorized local peddlers and collected protection money. Before long, they had a business that included bootlegging and gambling all over New York City.

How Prohibition Created the Mafia

Starting in January 1920, the United States became a dry country. Prohibition banned the manufacture and sale of alcohol in an attempt to civilize unruly Americans (and some other reasons). The experiment had many unintended consequences, but most dangerously, it fostered the rise of organized crime and the American Mafia.

By the late 1930s, Siegel had become one of the major players of a highly powerful crime syndicate, which gave him $500,000 to set up a Los Angeles franchise. Bugsy threw himself into the Hollywood scene, making friends with some of the biggest names of the time–Cary Grant, Clark Gable, and Jean Harlow. His all-night parties at his Beverly Hills mansion became the hot spot in town. He also started up a solid gambling and narcotics operation to keep his old friends back east happy. Just before World War II began, Siegel traveled to Italy to sell explosives to Mussolini, but the deal fizzled when tests of the explosives did too.

In 1945, Siegel had a brilliant idea. Just hours away from Los Angeles sat the sleepy desert town of Las Vegas, Nevada. It had nothing going for it except for a compliant local government and legal gambling. Siegel decided to build the Flamingo Hotel in the middle of the desert with $6,000,000, a chunk of which came from the New York syndicate.

The Flamingo wasn’t immediately profitable and Siegel ended up in an argument with Lucky Luciano over paying back the money used to build it. Around the same time that Siegel was killed in Beverly Hills, Luciano’s men walked into the Flamingo and announced that they were now in charge. Even Siegel probably never imagined the astounding growth and success of Las Vegas in the subsequent years.

How Las Vegas Became a Gambling Mecca

It took an influx of dam workers, exiled Los Angeles gambling operators and mob figures to build 'sin city.'

How Las Vegas Became a Gambling Mecca

By: Becky Little

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1863

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1919

German cabinet resigns over Versailles deadlock

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1941

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1963

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1975

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Citation Information

Article title
Bugsy Siegel, organized crime leader, is killed
Website Name
History
Date Accessed
March 23, 2025
Publisher
A&E Television Networks
Last Updated
February 18, 2025
Original Published Date
November 13, 2009

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