E. Parry Thomas
Encyclopedia
E. Parry Thomas is a now-retired American banker who helped finance the development of the casino
industry of Las Vegas
, Nevada
. Along with his business partner, Jerry Mack, Parry Thomas is credited with building Las Vegas into what it is today. He was born in Ogden, Utah
.
Thomas worked for Continental Bank & Trust Co. of Salt Lake City. Walter Cosgriff, who headed that bank, also owned a stake in the Bank of Las Vegas, which opened in 1954. The Las Vegas bank was struggling, so Cosgriff sent Thomas to find out whether it should be closed. Thomas was enthusiastic about the potential and ended up assigned to work in Las Vegas full-time.
in Las Vegas. Banks at the time were wary about lending to casinos, because of the risks involved. Thomas realized that gaming, like insurance
, was based on probabilities and could be a sustainable business. If other bankers wouldn't lend to Las Vegas casinos, Thomas would. He was instrumental in getting insurance companies and pension fund
s to invest in Las Vegas gambling operations as well. Thomas later said, "We felt a great obligation to deal with all legitimate enterprises within the state." It wasn't until the 1970s that other banks would begin to lend to casino operations.
In 1955, the Bank of Las Vegas made its first casino loan to Milton Prell
for the Sahara Hotel and Casino. The $750,000 enabled Prell to build the Congo Room, 120 hotel rooms and to make other improvements.
In the mid 1960s, the owners of the casinos were starting to have succession issues. Many were ready to sell, but Nevada law required that all owners be licensed which resulted in casinos selling at low valuations. The law prevented publicly held companies from acquiring casinos, because it was impractical for every stockholder to obtain a license. Some thought corporate control would open the gambling industry to hidden ownership. Thomas proposed changing the law about 1965. Northern Nevada, being much larger at the time, controlled the Legislature, and William F. Harrah
of Harrah's casinos figured he didn't need investors on Wall Street. He persuaded legislators to kill the bill. Thomas convinced Harrah and his attorney, Mead Dixon, to join him in supporting the bill. His point was "what was (Harrah's company) going to do when Bill Harrah died?" They understood immediately. The bill became law in 1967 and was refined with a 1969 amendment. Only those holding 10 percent or more are required to be licensed.
In 1968, Bank of Las Vegas merged with Valley Bank of Reno. Reno was still a larger city at the time and the Valley Bank shareholders wouldn't have a major bank in their community called Bank of Las Vegas so they chose to use the name Valley Bank.
During this time Howard Hughes
became interested in Las Vegas. Bob Maheu, a former FBI agent who was Hughes' top aide, couldn't recall any major piece of valley real estate Hughes acquired without consulting Thomas, including six casinos. For a summer while his family was in southern California
vacationing, Thomas moved into the Desert Inn Hotel so he could quickly transact the business Hughes needed done. Thomas bought properties as nominee for Hughes so the sellers wouldn't know Hughes, the richest man in the world at the time, was bidding for the property.
In the early 1970s, Valley Bank, at Parry's urging, lent $1.2 million to Steve Wynn
, which Wynn used to buy a narrow strip of land next to the Caesars Palace
, right on the major thoroughfare, Flamingo Road. Earlier Parry had tried to sell the land to Caesars Palace but they weren't interested. Wynn then announced plans to build the world's narrowest casino, motivating Caesars to buy the land for $2.25 million. With none of his own money invested, Wynn made $1 million on the deal. This gave Wynn enough money to buy a significant interest in the Golden Nugget Hotel in downtown Las Vegas and soon take over the company.
Thomas and his partner Jerry Mack, soon learned that the University of Nevada, Las Vegas
had very little land for growth, so they established the Nevada Southern University Land foundation. They donated $500,000 for feasibility studies and the initial architectural renderings for the university. Through the foundation, they helped acquire all the land upon which the university sits today. The basketball arena where the famous Runnin Rebels play bears their name today, the Thomas & Mack Arena.
In 1992, BankAmerica Corp. bought Valley Bank of Nevada.
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
industry of Las Vegas
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
. Along with his business partner, Jerry Mack, Parry Thomas is credited with building Las Vegas into what it is today. He was born in Ogden, Utah
Ogden, Utah
Ogden is a city in Weber County, Utah, United States. Ogden serves as the county seat of Weber County. The population was 82,825 according to the 2010 Census. The city served as a major railway hub through much of its history, and still handles a great deal of freight rail traffic which makes it a...
.
Thomas worked for Continental Bank & Trust Co. of Salt Lake City. Walter Cosgriff, who headed that bank, also owned a stake in the Bank of Las Vegas, which opened in 1954. The Las Vegas bank was struggling, so Cosgriff sent Thomas to find out whether it should be closed. Thomas was enthusiastic about the potential and ended up assigned to work in Las Vegas full-time.
Role in developing Las Vegas
Thomas arrived during the pioneering phase of gamingGambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
in Las Vegas. Banks at the time were wary about lending to casinos, because of the risks involved. Thomas realized that gaming, like insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, was based on probabilities and could be a sustainable business. If other bankers wouldn't lend to Las Vegas casinos, Thomas would. He was instrumental in getting insurance companies and pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s to invest in Las Vegas gambling operations as well. Thomas later said, "We felt a great obligation to deal with all legitimate enterprises within the state." It wasn't until the 1970s that other banks would begin to lend to casino operations.
In 1955, the Bank of Las Vegas made its first casino loan to Milton Prell
Milton Prell
Milton Prell was a casino owner and developer most notable for his projects in Las Vegas, Nevada. He was also good friends with Colonel Tom Parker, best known as the manager of Elvis Presley. Elvis married Priscilla in Prell's apartment at the Aladdin in a private wedding shielded from the media...
for the Sahara Hotel and Casino. The $750,000 enabled Prell to build the Congo Room, 120 hotel rooms and to make other improvements.
In the mid 1960s, the owners of the casinos were starting to have succession issues. Many were ready to sell, but Nevada law required that all owners be licensed which resulted in casinos selling at low valuations. The law prevented publicly held companies from acquiring casinos, because it was impractical for every stockholder to obtain a license. Some thought corporate control would open the gambling industry to hidden ownership. Thomas proposed changing the law about 1965. Northern Nevada, being much larger at the time, controlled the Legislature, and William F. Harrah
William F. Harrah
William Fisk Harrah was an American businessman and the founder of Harrah's Hotel and Casinos.-Early years and education:...
of Harrah's casinos figured he didn't need investors on Wall Street. He persuaded legislators to kill the bill. Thomas convinced Harrah and his attorney, Mead Dixon, to join him in supporting the bill. His point was "what was (Harrah's company) going to do when Bill Harrah died?" They understood immediately. The bill became law in 1967 and was refined with a 1969 amendment. Only those holding 10 percent or more are required to be licensed.
In 1968, Bank of Las Vegas merged with Valley Bank of Reno. Reno was still a larger city at the time and the Valley Bank shareholders wouldn't have a major bank in their community called Bank of Las Vegas so they chose to use the name Valley Bank.
During this time Howard Hughes
Howard Hughes
Howard Robard Hughes, Jr. was an American business magnate, investor, aviator, engineer, film producer, director, and philanthropist. He was one of the wealthiest people in the world...
became interested in Las Vegas. Bob Maheu, a former FBI agent who was Hughes' top aide, couldn't recall any major piece of valley real estate Hughes acquired without consulting Thomas, including six casinos. For a summer while his family was in southern California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
vacationing, Thomas moved into the Desert Inn Hotel so he could quickly transact the business Hughes needed done. Thomas bought properties as nominee for Hughes so the sellers wouldn't know Hughes, the richest man in the world at the time, was bidding for the property.
In the early 1970s, Valley Bank, at Parry's urging, lent $1.2 million to Steve Wynn
Steve Wynn (developer)
Stephen Alan "Steve" Wynn is an American business magnate who played a pivotal role in the 1990s resurgence and expansion of the Las Vegas Strip...
, which Wynn used to buy a narrow strip of land next to the Caesars Palace
Caesars Palace
Caesars Palace is a luxury hotel and casino located on the Las Vegas Strip in Paradise, Nevada, an unincorporated township in Clark County, Nevada, United States in the Las Vegas metropolitan area. Caesars Palace is owned and operated by Caesars Entertainment Corp....
, right on the major thoroughfare, Flamingo Road. Earlier Parry had tried to sell the land to Caesars Palace but they weren't interested. Wynn then announced plans to build the world's narrowest casino, motivating Caesars to buy the land for $2.25 million. With none of his own money invested, Wynn made $1 million on the deal. This gave Wynn enough money to buy a significant interest in the Golden Nugget Hotel in downtown Las Vegas and soon take over the company.
Thomas and his partner Jerry Mack, soon learned that the University of Nevada, Las Vegas
University of Nevada, Las Vegas
University of Nevada-Las Vegas is a public, coeducational university located in the Las Vegas suburb of Paradise, Nevada, USA. The campus is located approximately east of the Las Vegas Strip. The institution includes a Shadow Lane Campus, located just east of the University Medical Center of...
had very little land for growth, so they established the Nevada Southern University Land foundation. They donated $500,000 for feasibility studies and the initial architectural renderings for the university. Through the foundation, they helped acquire all the land upon which the university sits today. The basketball arena where the famous Runnin Rebels play bears their name today, the Thomas & Mack Arena.
In 1992, BankAmerica Corp. bought Valley Bank of Nevada.