Bob Stupak, a Pittsburgh, Pennsylvania native, was a hard-core gambler seeking a good game.
In the 1970s, it was common knowledge that the Las Vegas Strip is a three mile road that starts from Hacienda and ends at the Sahara. Going north past the Sahara started a trek in a crime-ridden world including narcotics, gangs, prostitution and what was called the "seedy side" of Vegas and the "Naked City".
Stupak purchased a 1.5 acre parcel of land where Todkill/Bill Hayden Lincoln Mercury dealership stood for $218,000. The address was 2000 Las Vegas Boulevard South. Stupak thought he finally made it to the Strip when some guys stated "You stupid schmuck. You're not on the Strip! The Strip starts at Sahara Avenue."
Stupak was approved for a gaming license to operate the Million Dollar Historic Gambling Museum on November 15, 1973, and received his license the following February. The Million Dollar opened on March 31, 1974. He then insured the property through Fireman's Fund American Corporation for $200,000 and added policies for $80,000 in personal property, $5,000 in office equipment, and $100,000 in cash. A sign covering the length of the building which featured a buxom bikini-clad babe straddling the "M" and tossing cash at passerby. The sign read "Bob Stupak's World Famous Million Dollar Historic Gambling Museum World's Biggest Jackpot." Another sign read "See What a $100,000.00 Bill Looks Like."
The casino held 15 slot machines, a few antique green felt tables, casino chips, and wall-to-wall gimmicks.
Some of the gimmicks included the World's Richest Jackpot slot machine with a pay-out of $250,000, a free look at a rare $100,000 bill (it was fake), the Shower of Money machine which allowed players the opportunity to scoop up as much as $1,000, and visitors could have a free picture of themselves taken in front of the Wall of Money - an estimated 60,000 $1.00 bills.
When none of these gimmicks worked to bring the masses, Stupak had a $50,000 jackpot on a nickel slot machine named Million-to-One. The curious did come but more tourists were interested in the nearby massage parlor, the topless bar to the north, and the string of prostitute-infested motels that were on the Boulevard between Sahara and Fremont.
On May 21, 1974, at 7:40pm, tourists on the sidewalk noticed smoke rising from the casino. Nine units from the Fire Department appeared. A hook and ladder truck unfolded and firefighters blasted the blaze from above as well as from ground level. In minutes, more than 1,000 people stood outside to watch Stupak's dream burn to the ground. Stupak was present with tears in his eye watching his dream die.
Damages ranged from $500,000 to $2 million. Smoke and water damage ruined the first floor. The second floor, where the fire broken out, was gutted. The fire destroyed the fake $100,000 bill. Firefighters concentrated on keeping the flames from burning the genuine money. The rescued money was placed on the hood of a car with Stupak crying over the wallpaper, lost revenue, and the lost potential of his dream. Investigators could not determine how and where the fire started.
In September of 1974, Stupak filed insurance claims for $200,000 in losses on the building, $76,700 for equipment, and another $20,000 for cash and office furnishings. The insurance company didn't buy those figures and offered $158,000. Stupak declined and the matter ended up in federal court in 1976 with the insurance company alleging Stupak himself started the fire. Stupak responded with a counterclaim seeking in excess of $1.5 million in damages. He hired attorney Ralph Denton and sued the insurance company, City Attorney Carl Lovell, and Assistant City Attorney Peter Burleigh. Stupak won with a settlement of $300,000.
With a loan from E. Parry Thomas and Kenny Sullivan at the \ Bank, ground breaking for his casino/hotel took place in June of 1978. This would be the first hotel/casino built close to the corner of Sahara Avenue and Las Vegas Boulevard since the Sahara opened in 1952. In more recent times, the only casino to open in close proximity was the Jolley Trolley that has since been replaced with a department store sized souvenir shop.
Bob Stupak's three acre Vegas World opened on July 13, 1979, with 102 rooms, with the motto "The Sky's The Limit". Attending the opening was Stupak as well as the Dallas Cowboys Cheerleaders, local TV personality Gus Giuffre, and City Commissioner Ron Lurie.
It was advertised that Vegas World cost $7 million to build. In reality, it cost a little more than $3 million. Gaming Control required enough cash to open the resort so Stupak sold his five-carat diamond ring, and his Rolls-Royce. Hours after he opened the resort, he raised the table stakes from $50 to $100 and soon allowed up to $2,000 bets. At the time, Caesars Palace allowed half as much. Stupak announced "Don't come to the big place with the small bankroll. Come to the small place with the big bankroll." Fortunately, when the cage ran short of money, Stupak could take loans from Benny & Jack Binion's ready cash loans.
Stupak knew he had to attract gamblers to his resort in such a way that they were diverted from the popular resorts on the Strip. He attracted gamblers with gimmicks, high-stakes games and vacation packages costing $395 to $5,000. Stupak was the first casino operator to use extensive direct mail advertising, heavy with play promotions.
Vegas World featured a rooster that played tic-tac-toe. Since the carnival-trained rooster got to pick first, it always won. Other promotions was a glass case filled with real money and a poster of Stupak above it tempting players to take a try and win; Crapless Craps; Double Exposure 21, the world's largest wheel of fortune, measuring over 30 feet across; and a standing offer that for a $10,000 minimum bet, a person could play Stupak head-up in the poker game of their choice.
One night a gambler appeared at the resort's crap table and threw a scare into Stupak. He was winning big and a few more plays and he would own a large piece of Stupak's dream. After midnight, Stupak called Jack Binion asking for money (similar to what Frontier's Bill Moore had to do with Pioneer Club's Farmer Paige decades before). The request neither shocked nor dismayed Binion who had broken into the business before he was old enough to vote. Stupak needed $300,000 and Binion told him to meet him at the Binion's Horseshoe's cage. Stupak returned to his own resort with the cash in brown sacks.
Not long after Vegas World opened, Stupak met David Sklansky, the man who would become the resort's gaming guru. Sklansky's business cards would read Resident Wizard.
With a very slim bankroll, the Hotel Employees & Restaurant Employees International Union (known as Culinary) figured he was an easy mark. Illegal pickets showed up outside the resort just three months after it opened. Union organizers knew it would take weeks for a judge to force them to leave, and by then the resort would give up and sign a contract. Even before the hotel was finished, Stupak was approached by organizers who attempted not only to force him to hire dues-paying waiters, chefs, cocktail waitresses, and housekeepers, but also to slip them a little something extra to ensure labor peace.
Stupak had welcomed the Teamsters' presence at the resort when it organized the front-desk workers, and parking lot attendants, but he refused to be strong-armed. Pickets appeared on the sidewalk 24 hours a day with trucks hauling food, linen, and other supplies being delayed by the marchers. Culinary then filed a list of charges against the resort. Stupak didn't fall for these tactics. He not only refused to pay protection, but he also fought the union's use of illegal pickets. When union officials would come into the coffee shop and glare at Stupak, he would jump on top of the table and start screaming "This is un-American! You can't do this to me!" The officials would come in with their shirt sleeves rolled up - and Stupak would roll up his sleeves showing his tattoos. Stupak then took his own resort employees, and proceeded to set up his own picket line around the union's. His picketers carried signs that stated "Unfair Union Practices."
Stupak then approached the union and stated "I'll make you a deal. I'll sign the contract if Ben Schmoutey will go out there and play against my Polish Rooster. If he beats the rooster at tic-tac-toe, I'll sign the contract. If he loses, then you guys go away and leave me alone." Union organizers called him an idiot and Schmoutey stated "You ignorant SOB, I've got 20,000 members and I'm going to play tic-tac-toe against a goddamn rooster?" This tactic did the union in. They walked out and the resort stayed non-union. In January, 1980, the National Labor Relations Board ordered that the illegal pickets be removed from the sidewalk. Stupak was viewed as anti-labor and as a certifiable nut after word circulated that he not only had challenged Schmoutey, but also had negotiated with the union men from behind the bar at the resort to sing "Look for the union label" while they served his adversaries free whiskey and beer.
By 1980, Vegas World had brought in $7 million and Stupak quickly reinvested it to build 900 more rooms and increased the casino from 15,000 to 80,000 square feet without any bank financing.
World's card room was the place to be and Stupak's own reputation as a high-stakes gambler attracted some of the best players in the city. Associates of the Chicago mob's Vegas enforcer Anthony Spilotro made Stupak's card room a satellite office for suspected extortion and loansharking activities. Spilotro was a suspect in 24 murders, but was never convicted of a felony. In June 1986, the bodies of Spilotro and his brother Michael were unearthed from an Indiana cornfield.
When union organization didn't work, organized crime figures decided they should have part of the action. They met in the hotel coffee shop, and Stupak put on quite a show. He went bug-eyed, and it spooked them into thinking he was unstable.
"You don't go to bed with the boys. Once you get into bed, you never get out. I handled the Outfit by being absolutely nuts. They let me know what was going on, said I going to be with them, and I got all excited. When is the meeting? Do I get to carry a gun? I can't wait. Do I get a kiss? Am I a made guy? I was outrageous, but it was nothing they ever woke up to. Pretty soon the word went around: That Stupak, he's too nuts. They thought I was completely nuts. Nobody ever reacted that way to them." - Bob Stupak
Law enforcement wanted Stupak to be an informant and strong-armed him - or they thought. Stupak made a terrible informant. For all the time he spent in the casino, he rarely seemed to notice anything. Occasionally he would give something but very little and of little use.
Vegas World had an entire side of its tower painted with space stations and astronauts floating in outer space seen through a screen of building's pilasters.
In February, 1981, Stupak announced on the Merv Griffin Show that World would be home to the largest jackpot on Earth. Dressed in a loud sport shirt with an open collar, Stupak said it came to him in a dream. Four slot machines were grouped in the casino with a flashy sign. The payoff was $1 million and could be hit only with the maximum $3 bet. Some of the smaller payoffs on the machines could be hit by lining up S-T-U-P-A-K. The $1 million jackpot was touted in the tabloids.
Stupak added a 340 seat showroom. The keno and poker parlors were expanded, the coffee shop cleaned up, and the casino enlarged from 16,000 to 27,000 square feet. Five chandeliers were installed, and new oak paneling gave the place a touch of Binion's Horseshoe.
In December, 1981, a fire broke out on the third floor of the hotel. A pile of linen had caught fire. Fire inspector Paul Keeton told a reporter that someone could have flicked a lighted cigarette into the stack, and it eventually ignited. But the question was, what was the pile doing in the hallway in the first place? There were no maid carts around to indicate that employees were working in the area.
In July 1982, Stupak won approval for a 24 story, 339 room tower. Stupak formed a construction company called High Rollers, Inc., to serve as general contractor for the expansion and, as to be expected after he was treated so badly, he refused to hire union workers.
In September, 1982, the AFL-CIO's 26th annual convention took place and there was a boycott of World along with Imperial Palace and Bingo Palace.
The shows during the construction were shows in themselves. Jahna Reis and the Boob Tube Review emphasized jiggle over talent. Outrageous Vegas was a vulgar drag-queen show that surprised everyone by proving to be popular.
On night a wealthy player from Chicago was down $200,000 and requested a glass of fresh-squeezed orange juice. Stupak rounded up a bag of oranges and headed to the kitchen. The gambler not only got his glass of juice but he came away with the knowledge that the owner had squeezed it.
By the early 1980s the hotel was a cross between early brothel and 2001: A Space Odyssey. The walls were lined with mirrors, and an astronaut and spaceship hung from the ceiling. The Starship Enterprise-sized big six wheel took an electric motor to spin. Outside, a mural covered the entire east wall of the hotel.
The image was cards falling through space with the Earth in the background. In time, a giant astronaut was added to the hotel. The marquee was shaped like a rocket ship. (The marquee was where the tower is located today.)
During the 1982 college football season, Stupak locked in his line at 7-1/2 and wrote $1 million worth of action. The bettors rushed to World to take advantage of the sap, who stood to lose more than $400,000 if Florida State won by more than a touchdown. If West Virginia somehow covered the point spread, World be would $600,000 richer. W. Virginia not only covered, but beat Florida 28-6.
At the World's pool, Stupak bet a friend $5,000 on who could hold his breath longer. Despite being a chain smoker, Stupak won.
On May 19, 1984, Dan Koko, a divorced father of three from North Carolina, was hired to jump off of the building. He made it no problem. Three months later, Stupak upped the stakes and drew national attention: he promised to pay Dan Koko $1 million if he would free-fall 326 feet from a scaffolding atop the hotel. The record was 311 feet.
On August 30, 1984, Koko landed safely and the feat was memorialized from coast to coast.
Even though he had 6 Rolls-Royce autos, Stupak would drive his Vegas World rocket car, a cramped coupe with his casino logo emblazoned on the side around town.
Stupak's office at the resort was a dingy, little-used space on the third floor. It had dust on everything as he was never there.
In 1984, Vegas World made her acting debut in Las Vegas Caper, and in 1985, she appeared in Fever Pitch.
In 1985, the Galaxy Showroom showcased the Robert Allen Show. The Casino Show Lounge showcased Kay Shannon.
During this year the casino held three poker tables with Sid Diamond as Manager. The sports and racing book was managed by Greg Liece.
Vegas World was now bringing in excess of $100 million per year. Tony Martin was signed to play at the resort, and there was a stripper Platinum Peaks who appeared there. Whenever she appeared in the showroom the hotel marquee read 88-DDDDDDD.
Kelly and Cohen's was a restaurant set in an intimate, plush setting. Its specialties were rare beef offerings, fine veal, fish and poultry dishes, including Casey's Creation. Prices ranged from $10 to $15.
In 1987, Vegas World starred as Lucky Star in the TV show Crime Story.
Even though Stupak accomplished his dream, he had a bigger and different dream for this property. In 1991, he announced plans to build a "space needle" modeled after other World Fair landmarks. (It should be noted that this idea was a duplicate of another resort, Landmark). Unable to secure financing from lending institutions, Stupak embarked on a massive direct mail ad campaign. In the promotional brochure aside from advising the person about his plans for the resort, that for $2,500, an investor would receive five once a year trips to stay at Vegas World for three days and two nights plus $500 each trip in house chips. Furthermore, any and all ground floor investors would have their name placed on a bronze plaque on the grounds of the completed resort.
In 1988, Main Showroom showcased Men of Paradise, and The Robert Allen Show. The Lounge showcased Pursel and Breene.
In 1990, Main Showroom showcased Memories of Elvis, Reflections of Sinatra, and Hallelujah Las Vegas.
In 1991, Main Showroom showcased Reflections of Sinatra starring Duke Hazlett, Memories of Elvis starring E.P. King, and Marty Allen/Steve Rossi.
In 1992, Galaxy Theatre showcased So Big Burlesque, The Legendary Marty Allen/Steve Rossi, Tony Martin, Reflection of Sinatra, Tony Martin, and Memories of Elvis.
In 1993, Galaxy Theatre showcased The Legendary Marty Allen/Steve Rossi, and Memories of Elvis starring E.P. King.
With parts of Vegas World staying open during the construction, by August of 1993, the Tower had risen to 510 feet. It already was by far the tallest structure in the city, and it had not yet reached the halfway mark. The planned opening date was in the summer of 1994.
In order to build the tower, Stupak had to fight the local FAA. The FAA stated that the tower would interfere with some flights at McCarran Airport. Stupak knocked a few hundred feet off his plans and took his case to FAA officials. As a result, height limits were revised all over town. This allowed construction of the 49 story New York New York, and her sibling Monte Carlo. It also allowed development of the future resort by Circus Circus on the 74 acre property they received from their purchase of Hacienda which would become Mandalay Bay.
On Sunday August 29, 1993, a Vegas World tourist noticed flames and smoke rising from the top deck of the tower. What was not known was that the fire had already spread to the tower's stairwell and was making its way down one leg. At 12:39am the fire was reported; at 12:45am the first engine arrived at the scene. Fire hoses were set up on the roof of Vegas World in hopes that the water pressure would somehow enable them to fight the fire from more than 250 feet below. It was raining fire, the back side was on fire, and within a matter of 15-20 minutes the whole structure was on fire. It was shooting part of the scaffolding onto the casino and down to the ground. The fire department converged and found a gigantic torch burning. A modern ladder tuck can climb several stories, but even the tallest fire crane wouldn't begin to approach the flames burning more than 50 stories overhead. The most powerful streams of water fell 30 floors short of the fire.
Sparks drifted on the 20mph winds from the upper deck to nearby residential areas, but no spot fires were reported. As spectacular as the fire was to watch, there wasn't much to burn up there except a stack of cement forms used to frame the daily cement pour. The tower's concrete structure would not be weakened by the fire, no matter how hot it burned. A nearby McDonald's and the Aztec Casino were evacuated.
Police, who had spent nearly $1 million in crowd control preparation in the wake of L.A.'s Rodney King riots, quickly blocked off traffic on the Boulevard from Sahara and St. Louis Avenues. Falling debris threatened to harm the thousands of spectators who gathered from nearby motels and Meadows Village. Vegas World was not evacuated immediately. The resort wasn't on fire, but the debris outside was life-threatening if people ran out.
Unfortunately, World's lights went out and guests hurried to gather up their stuff in rooms or clear their winnings off the tables before rushing outside. With burning pieces of wood dropping down past the guests' windows, the scramble became crushing. Patrons struggled to see in the darkened hallways. They located the stairs only to find them flooded with other guests. In the dim light someone easily could have been trampled, but in the end, the only serious injury was to Stupak's name.
World employees remained behind to assist with the evacuation. Although they had been given no fire-safety training, they responded as if they owned a piece of the place. Comedian Marty Allen, who had become a staple in the showroom worked on his material from the sidewalk. "They kept saying it's a hot act," he said.
By 2:00am, the blaze was upgraded to a three-alarm fire, but the firefighters were limited to making sure the burning debris didn't spread the flames throughout downtown. The lack of huge winds probably saved lives and millions of dollars in property damage. One hour later, the fire on top began to die out, but the blaze was still strong at the building's lower levels. The top would continue to smolder until sunrise.
At the time of the fire Stupak was in Minneapolis attempted to persuade Grand Casinos Chairman Lyle Berman to invest in the project. Stupak's initial reaction was "What is there to burn? I didn't know any of the details until the next day."
To proceed with the building, the site needed a new crane to replace what was now a 25-ton collection of scrap iron balanced on top of the tower. Although fire crews had secured the damaged construction crane with chains to prevent the possibility of it breaking loose and crashing on LV Boulevard or the top of Vegas World, the problems created by the gigantic broken erector set were many. Securing it was one thing, removing it quite another. Engineers would have to construct a 700-foot crane and bolt it to the outside of the tower, then use it to remove the ruined crane piece by piece. The good news was that the tower suffered no structural damage. Although a container of plastic material appeared to be at the flashpoint of the fire, the cause of the blaze remained unknown.
On November 15, 1993, Lyle Berman and Stupak struck a deal. Grand Casinos saved the IPO by purchasing $28 million worth of stock, and in doing so acquired 43% of Stratosphere Corporation, as well as picking up options including an agreement to acquire 75% of World from Stupak for $50.4 million. Grand did not however, assume Stupak's liabilities, which included the cost of the Vegas World vacation packages. Ex-Howard Hughes employee Bob Maheu was the Vice President of Stratosphere Tower Company.
Berman made his mark by investing $3 million in an Indian gaming project in Minnesota in 1990, and Grand Casinos operates two hotel-casinos each in Minnesota, Louisiana and Mississippi. The company's fourth-quarter 1995 revenues rose 30 percent, to $373 million from the year before.
In 1994, World showcased Bob Anderson, and Memories of Elvis.
In January of 1995, Galaxy Theatre showcased Bob Anderson - America's Greatest Singing Impressionist, and Memories of Elvis.
By the end of January, 1995, everyone knew that Vegas World was ending her life. Encouraged by $.50 drinks, crowds of locals dropped by to stroll over the interstellar carpet featuring Stupak's signature, to bid farewell to the million-dollar display and wonder whether there was anywhere near that much cash under the glass. The looked one last time at the lunar module replica and the space-walking astronaut that hung from the ceiling. They walked past the Spaceport check-in, and to wonder at the possibilities of the gigantic wheel of fortune, and undoubtedly, to get lost in the reflection of all those wall mirrors. This lady was a place where no one had to ask the identity of the owner and where everyone had to ask directions to the restrooms. She was a little place that affected greatness and, in the age of 3,000 room megaresorts with finely tuned themes and Ivy League CEOs, it was almost quaint - in a Lost In Space meets Mustang Ranch sort of way. Many would miss this resort that personalified the Cheers TV show.
Despite a lack of critical acclaim and a genuinely awful location, little Vegas World had been successful. The property had grown from two to eleven acres, the casino from 15,000 to 18,000 square feet. She had opened with 150 slot machines and eight table games and was closing with 1,350 machines and 40 tables. She had generated $7-8 million the first year and more than $100 million in her final years.
On February 1, 1995, Vegas World closed her doors in preparation of her offspring.
On March 31, 1995, Stupak was involved in a motorcycle accident that left him in a coma for five weeks and required plastic surgery to reconstruct his face. It is truly amazing that Stupak survived as he was travelling at 60mph in a 35mph zone when the accident occurred.
On November 5, 1995, Air One of Phoenix lifted the final 24 foot spire section to the top of the Stratosphere tower. A crew moved in to secure the 3,700 pound section into place.
In late 1995, it was announced that the new resort's Top of the World Restaurant will offer a one-of-a-kind view of the Vegas area from more than 100 stories above the ground. The restaurant will be found at the 832-foot level of the resort. Top of the World was to make one revolution per hour while offering diners the opportunity to have imaginative cuisine at reasonable prices. It was to feature a 220 seat cocktail lounge, a restaurant seating 360, special ceilings to absorb sound, and non-reflective glass windows
On April 30, 1996, the sparkling 354,000 square foot, $550 million Stratosphere opened drawing more than 8,000 invited guests to its premiere party while thousands more lined the streets outside awaiting their chance for a glimpse of Las Vegas' newest megaresort. (The 1,500 rooms and suites didn't accept overnight guests until May 7, 1996.) People who attended the opening were Bob Stupak, Phyllis McGuire, Jack Binion, Lyle Berman, Gov. Bob Miller, Mayor Jan Jones, Councilman Arnie Adamson, and actor Gary Busey. True to his word, Stupak's plaque with the investors names was placed on the site along with the gold statute Berman gave to Stupak.
Opening night: Left to right - Stupak holding McGuire Sisters poster, Stupak and Phyllis McGuire, Stupak and Horseshoe President Jack Binion, the statute located in the casino, Stupak presenting plaque to Grand Casinos Chairman Lyle Berman with McGuire looking on, Stupak and Gov. Bob Miller, and Stupak with Mayor Jan Jones.
Regarding the tower - "I'm sure there have not been so many people this high since the last Grateful Dead concert. . . . I can't think of anyone who has defied the odds as often or more successfully than Bob Stupak." - Gov. Bob Miller
During a massive $60,000 fireworks display, accompanied by a radio simulcast featuring the music of Pink Floyd, smoke from the pyrotechnics again set off the sensitive alarms in the observation pod. Many workers were unsure whether to conduct a full-scale evacuation or merely direct skittish visitors to the two refuge floors designed to protect guests in emergencies. Some partiers were instructed to use the stairs, all 100 flights, to reach the ground. The smoke-cleaning system worked as designed, vacuuming the vapors from the building, but it was little consolation for the visitors who had been frightened and those who had taken the stairs.
The tower is 1,149 feet (Landmark was 297-1/2 feet in height). The structure is the tallest free-standing observation tower in the United States and tallest building west of the Mississippi. The tower is taller than the Eiffel tower and twice as tall as Seattle's Space Needle. It is capped by a 12-story pod. It can be reached by four double-deck elevators that travel at 1,800 feet per minute.
"This tower will be the symbol of Las Vegas for all time. What Howard Hughes didn't do, Bob Stupak has finished off." - Lt. Governor Lonnie Hammargren
Employing 3,100 people, the Stratosphere contained the revolving restaurant, cocktail lounge, indoor and outdoor observation decks and wedding chapels perched high above the desert floor.
On opening night, Stratosphere's 97,000 square foot casino sparkled with World's Fair-themed decor, while magicians, jugglers and other performers entertained visitors lined up for various attractions.
Attractions included the High Roller Coaster and the Big Shot, two thrill rides outside the pod near the top of the tower. The High Roller consists of nine four-passenger cars that will make three circuits around the tower, banking up to 32 degrees. At 909 feet above the ground, it's the world's highest roller coaster.
Riders of the Big Shot experience up to four Gs as they accelerate straight up a 228-foot mast extending from the top of the tower at the 921 foot level. They'll feel negative Gs on the way down, as the 16-seat passenger compartment free-falls back to the starting point.
By the end of the first month, Stratosphere's problems were impacting the bottom line. Its revenues after five weeks were $26.8 million - $19.1 million in hotel revenues and a dismal $7.1 million in the casino. The tower was a success attracting 445,000 visitors. At 80%, hotel occupancy was below the Vegas average of 93% and the traditional 100% for just-opened megaresorts, but the Strat's $71 rack rate was unprecedented in the history of the location. Employees recognized the trend: visitors were coming to the tower, but they weren't sticking around to feed the slots and take on the table games.
More than 18,000 people per day ascended the tower during its first week, but in that short time one minor event came to symbolize the growing list of problems with the Stratosphere: On May 9, 1996, a 15 pound piece of the High Roller roller coaster cam loose and dropped 35 feet onto the observation deck. It was a metal cylinder from one of the motors used to propel the cars around the track. A quick check of he cars revealed that all but one of the cylinders had been properly calibrated. Fortunately, no one was riding the roller coaster at the time, and no one on the observation tower was standing near where the part landed.
The following opening picture were taken by, and is owned by, Mike Christ. This picture is for the purpose of documenting this site. Mike Christ - All rights reserved. This picture, in whole or in part, may not be copied or duplicated in any manner without written permission from the owner. If you wish to buy the original picture from Mike, please e-mail me. (These pictures have been altered by me to prevent theft.)
Artist's rendition of the ride
During this time Stratosphere made an announcement on construction of a new ride, a $6 million, 70-foot-tall animatronic ape that would climb more than halfway up one leg of the tower, carrying 48 passengers in a viewing compartment in its belly. It was to be called The Belly Of The Beast.
When the Stratosphere opened, there were still people who had purchased vacation packages for Vegas World. Stupak placed $50 million of Stratosphere stock in an escrow account to cover reimbursements of about $24 million in the vacation packages still outstanding.
In July of 1996, Stratosphere Corporation officials cancelled plans for Belly of the Beast. It was stated that engineering problems and the price of construction as reasons for the cancellation.
On July 5, 1996, the Strat's pod was evacuated after a cardboard box caught fire in an electrical service room on the 10th floor of the pod.
On July 22, 1996, Stupak resigned from his dream.
Stratosphere was in trouble. She had to cut her payroll, terminating 150 workers. She dropped the price of her elevator ride from $7 to $5. Casino managers also moved to adjust the payout percentages of the slot machines to make them more attractive to local players, and hotel managers started revamping the resort's pricey restaurant menus. But no one could snap his fingers and complete 1,000 unfinished hotel rooms. No one could wave a wand and open the three dozen retail shops that were behind schedule. For that matter, no one could force tourists to sit and play slot machines they could operate anywhere in the city from 7-Eleven to Caesars Palace.
On August 5, 1996, Stratosphere shareholders Michael Ceasar and Samuel Tolwin filed a federal class-action lawsuit alleging Stratosphere Corporation, Grand Casinos, Stupak, Berman, David Wirching, Tom Lettero, Andy Blumen, and attorney Tom Bell, violated securities laws through misleading practices. Stupak was targeted for selling off 948,000 shares for a profit of more than $8.25 million from December 19, 1995 to July 22, 1996.
On August 29, 1996, Harvey Cohen, Dawn Ennis, Robert Buckler, Jeff Wexler, and Union Equity Partners filed a lawsuit against Stupak, Berman, Stratosphere, and Grand for deceptive trading and brokering.
In September of 1996, Stratosphere launched a shuttle bus program to give visitors at the south end of the Strip a chance to get to the Tower. The shuttles operated 10:0am to 10:0pm from the Polo Towers between the Aladdin and MGM Grand.
During September of 1996, it was reported that a big part of Stratosphere's financial problems was Monte Carlo. Monte Carlo opened in June, at a great location, showcasing Strip veteran Lance Burton (previously at Tropicana and Hacienda). When given the choice, people went to the Monte Carlo and forgot newcomber Stratosphere.
By October of 1996, it was evident that Stupak was experiencing problems with his dream and The Stratosphere Corporation. Stupak once held 18.3 million shares valued at more than $120 million of the company's stock but that dwindled to sole control of less than 60,000 shares. The spate of shareholder lawsuits and the concerns of state gaming regulators over Stupak's ability to pay about $17 million in debts to Stratosphere Corporation were taking their toll on Stupak.
Towards the end of 1996, Lyle Berman announced that the casino, which had been so disappointing, would loosen its wagering structure. Odds on craps would be increased to as much as 30 times. Dollar slot machines would return more than 98%. With maximum coins bet, select video poker machines would return more than 100%. What's more, they would institute crapless craps, double exposure blackjack, and single-zero roulette. Berman was beginning to use tactics that Stupak made famous with his little Vegas World.
Berman then hired Richard Schuetz to take Stupak's place.
A further examination brought up more problems with the resort. Guests found the valet parking arrangement inconvenient. Her group room bookings were nearly nonexistent and casino marketing efforts lagged months behind. It didn't help that the room reservation number in the phone book was incorrect, or that the managers failed to sell the rooms months ahead of time. The lavish piece of Native American artwork that dominated the entrance, in other resorts were occupied by slot machines.
During this year the Broadway Showroom showcased Danny Gans: The Man of Many Voices. The Images Cabaret showcased American Superstars, and Vive Las Vegas.
Unfortunately, the future of the Stratosphere wa not favorable. Losing money in all angles, Stratosphere filed for bankruptcy in January of 1997. Days after the bankruptcy filing, Stratosphere officials sent single-page letters to package holders saying the company could no longer afford to meet the cost of the deals.
People I had spoke with said the employees of the Stratosphere was less than pleasant, some calling them rude. My own personal encounter with the Stratosphere shortly after it opened was bad. After walking down to the Stratosphere, I noticed the doormen were sometimes opening doors for people. It seemed the type of car that a person drove up in determined a doorman's attention. When I "walked" up they just looked at me. Once inside, I couldn't get a cocktail waitress' attention and I couldn't find change people. It was disappointing to see this beautiful resort becoming so callus at such a young age.
In February of 1997, would-be visitors who paid for Vegas vacations they never received filed suit against Stupak and Grand Casinos Inc. The lawsuit was filed in Clark County District Court on behalf of California resident April Frank and all others who bought Vegas World hotel vacation packages after receiving direct-mail advertisements. By the end of 1994, Stupak had sold about 14,000 vacation packages worth more than $25 million, according to the suit. After Vegas World closed, package holders were given the option of cashing out or transferring the packages to the Stratosphere.
Grand Casinos stated that the packages weren't being honored Stupak failed to put enough money into a state-mandated account designed to cover the costs of the packages. Stupak countered that mismanagement by Grand Casinos depressed the value of stock he had put aside to cover the package costs.
Plaintiffs' attorneys alleged Grand Casinos misstated the anticipated construction costs of the Stratosphere and failed to disclose cost overruns in a Stratosphere prospectus filed in December 1995. These costs were also not revealed in quarterly and annual reports filed with the Securities and Exchange Commission through July 1996, the lawsuits claimed.
During 1997, Broadway Showroom showcased American Superstars, and Viva Las Vegas. Image Cabaret showcased The Emeralds. L'Isles Bar showcased Windjammer.
In November of 1997, it was reported that Financier Carl Icahn was buying $101.6 million of the resort's first mortgage bonds for about 30% less than their face value. He might invest another $100 million to add 1,000 rooms to the 1,500 room resort.
The tower itself drew more than 200,000 paid visitors at $5 each.
In August of 1998, Icahn gained preliminary state approval to become the majority shareholder for 50.04% of stock in the Stratosphere claiming that $70 million to $100 million will be spent to complete and upgrade the resort. Icahn stated the hotel rooms and tower will be completed, a swimming pool will be built and a sports book installed. Bradford T. Whitmore of Evanston, of Illinois held 34.6%, and 15% percent of the stock was owned by other individuals of which Icahn may buy some of those shares.
"As you know, I buy things when nobody wants them and in the case of the Stratosphere, nobody wanted it so we were there." - Carl Icahn
In early 1998, both Riviera and Stratosphere had guest shots on the Chicago Hope TV show. On hand for filming was Mark Harmon, Adam Arkin, Rocky Carroll, and Hector Alizondo.
In December of 1998, Grand Casinos was sold to Park Place Entertainment Corp. The tribal gaming business of Grand Casinos remained separate and became Lakes Gaming.
In 1998, Broadway Showroom showcased American Superstars, and Viva Las Vegas. Images Cabaret showcased Marshall Sylver.
As of June 1999, Stratosphere's construction was still on hold even though the resort remained open for business. According to Daniel Cassella who was president, chief executive, chief operating officer and director of Stratosphere Corporation, construction would not commence until all lawsuits and the bankruptcy were resolved.
During this year Broadway Showroom showcased American Superstars.
In June 2000, Lakes Gaming Inc., of Minneapolis agreed to pay $9 million to former Stratosphere shareholders. Grand Casinos, Lakes' predecessor company, held 42% of the defunct corporation's stock, and had been accused of making misleading statements to investors.
In a settlement agreement filed in the U.S. District Court on October 3, 2000, it was announced that out of the $9 million, approximately $3 million will go to the plaintiffs' attorneys as fees. As much as $2.1 million more will be paid out for attorneys' expenses. That $5.1 million bill added up to about $.22 per share.
The proposed fee of 57% needed to be approved by Judge Philip Pro during a final hearing to approve the settlement agreement.
"Over the last 4+ years, there was an awful lot of work done by plaintiffs' attorneys in this case. "The expenses were high because we had to retain experts, and we went through discovery twice. That isn't unusual. We worked really hard to get these people whatever we could, but the company doesn't have a lot of money." - Ellen Stewart, an attorney at plaintiffs' law firm Milberg Weiss of San Diego, the nation's largest firm specializing in shareholder litigation"The attorneys should get a cut, maybe 35%, and that should be their entire fee. What they're getting is a 33% profit and their costs back. That's ludicrous. What is this called, the shareholders' derivative relief act, the lawyers' permanent relief act? What about the people who lost money? This whole subject just grinds me almost to bits." - Dave Ehlers, Chairman of Las Vegas Investment Advisors
What's left of the settlement was distributed to shareholders who acquired Stratosphere shares from December 19, 1995, to July 22, 1996. The amount each shareholder receiveed was based on the date the stock was sold, and whether the shareholder actually lost money on Stratosphere stock. The settlement did not involve the current Stratosphere Corp., which is a different company controlled by Carl Icahn.
Lakes again denied wrongdoing in the settlement, but said that "further conduct of the litigation would be protracted and expensive, and ... it is desirable that the litigation be fully and finally settled." The settlement would dismiss claims against all defendants in the case, including Stupak, Lakes Chief Executive Lyle Berman and former Stratosphere Chief Financial Officer Tom Lettero.
Lakes also paid an additional $9 million to settle claims brought directly against Grand Casinos in Federal Court in Minneapolis.
A hearing on the terms of the settlement was held at the Las Vegas Federal Courthouse on December 4, 2000, at 1:30 p.m.
In 2000, I Dare You - The Ultimate Challenge was being shot at the empty lot which was once part of El Rancho Las Vegas. Sahara and Stratosphere was so accommodating to the crew and all involved that Andrew Jebb, Vice President of Production for Nash Entertainment went on record to state how pleased he was with the hospitality and cooperation he received from both resorts.
In 2000, the Broadway Showroom showcased American Superstars, Sha Na Na (9/21-23), and Viva Las Vegas.
In January of 2001, the Transport Workers Union of America unionized the table games dealers voting 116-48 in favor of representation.
Top of the World was tied for number one with Stardust's Tony Roma's for the Favorite Restaurant category in the 2001 What's On Visitor's Choice Awards. Fellow winners shown aer Wayne Newton, Lance Burton, and Janu Tornell of Folies Bergere celebrating at the Top of the World with Executive Chef Neal Salvino.
In May 2001, it was announced that the $73 million expansion of the resort will be complete in June of 2001. This project included the completion of the 1,002 room, 24 story tower left unfinished when there was a bankruptcy protection. There will be a resort style pool and recreation deck around the tower's sixth floor. With the completion, Stratosphere will have a total of 2,446 rooms.
In August of 2001, Stratosphere announced the following:
The Beach Boys launched the resort's new 3,606 seat Outdoor Events Center September 14-15. The Outdoor Events Center is located on the north side of the property, with the entrance adjacent to The Courtyard Buffet, another new addition to the resort. Tickets for this opening are $37.50 plus tax for floor seats, and $30 plus tax for bleacher seats and limited floor sections. Both performances are scheduled for 8:00pm.
Bryan Hong advised me that the performance was postponed to November 3-4, 2001, due to the September 11th Attacks.
In 2001, Broadway Room showcased American Superstars, and Viva Las Vegas. In addition the Room will be showcasing Paul Revere and the Raiders (4/12-14), and Chubby Checkers & The Wildcats (5/12-13).
The Outdoor Events Center showcased Beach Boys (4/14), and John Michael Montgomery (10/12).
In September, 2002, Forbes Wealthiest List named Carl Ichan as number 27 with $5.8 billion of net worth.
In 2002, Broadway Showroom showcased American Superstars.
On May 30, 2003, XO Communications, controlled by Icahn, said it offered about $700 million to acquire the assets of Global Crossing, the bankrupt telecommunications company. Global Crossing has already accepted a $250 million offer from Singapore Technologies Telemedia for a 61% stake in the company. XO Communications, which itself emerged from bankruptcy in January, said the offer is comprised of $250 million cash and the remainder covered by secured notes, junior preferred stock and warrants.
On October 14, 2003, it was reported that a skycrane helicopter made seven trips to the top of the 1,149-foot Stratosphere that morning to carry up the 18 tons of Las Vegas' latest ride. Under a clear blue and nearly windless sky, some of the many spectators who watched said the airlift was a thrill of its own. The helicopter was putting pieces in place for the Stratosphere's X Scream ride, which will dangle riders over the edge of the tower. Crowds of people stopped to watch the installation of the ride's main components. Lauritsen said he last saw a helicopter used to install machinery on offshore oil platforms in Dubai several years ago. Lauritsen said as he and his wife, Lavonne, watched from the third floor of the Stratosphere parking garage.
"I'm a retired civil engineer and I've seen this kind of thing before -- but no matter how many times you see it you are just amazed. This is just not something you see every day, and certainly not at such a high level. - Randy Lauritsen, Ponca City, OK"We have a 10-hour drive ahead of us to get back home, but we just had to stop and watch this. It's remarkable." - Lavonne Lauritsen
"We certainly don't have anything like this in England. Where I work we are building a ground-base radar station for the Royal Navy and we'll be using a large crane. When I go back, I'm going to ask why we are not using helicopters to set some of the (radar) components on the 150-foot tower." - Glynn Evans, a carpenter from England
"I'm amazed at how close the helicopter comes to the tower -- just 15 feet, I've been told. I feel, just watching this, I'm a little part of it, a part of history really." - Rachel Evans
When the largest of the seven pieces -- 69 feet of track weighing more than seven tons -- was safely set atop the Stratosphere, there was applause from the roof of the tower and down on the ground. The Evans couple said that when they come back to Las Vegas next year they will consider riding the X Scream. "It will take a lot of courage, and perhaps two or three Bud Lights," Glynn Evans said.
Mike Gilmartin, spokesman for the Stratosphere, said there will be a bar next to the X Scream for riders who need "liquid courage." Many of them may need that kind of fortification, since the ride will dangle them more than 800 feet above the Strip. Once it is installed at the top of the Stratosphere, the X Scream will be the world's third-highest amusement park attraction, after the Stratosphere's Big Shot and High Roller rides. The X Scream is scheduled to be assembled over the next two weeks. Its projected opening date is October 31, 2003.
"We are creating the most intense thrill ride in the world. It is outrageous." - Val Potter, Interactive Rides, Logan, Utah
Potter, who also serves as mayor of North Logan, Utah, said milder ground-level versions of X Scream currently are operating at Knotts Berry Farm in Southern California and Playland Park in Rye, N.Y.
"We felt from the beginning that this ride was perfect for the Stratosphere. It just took us a couple of years to convince the Stratosphere. What makes this ride so great is its high speed and g-force combined with people's natural awareness of the the high altitude. I was on a plane earlier today from Utah, flying at 32,000 feet and at 500 mph, but I didn't think anything of it because I was in an enclosure. With this ride, you feel like you are shot out over the Strip and dangling. Your heart will be pounding." - Clay Slade, one of the innovators of X Scream and the engineer for the Big Shot that was installed for the Stratosphere's April 1996 opening
The ride features an open, eight-seat metallic orange and green carriage that slides on a 14,600-pound teeter-totter base. The riders are held in their seats by only waist restraints that are secured with ratchets.
The carriage slides on the base at up to 30mph then suddenly stops as it reaches the end of the 45-foot expanse. Seconds later the base rises before plunging at a downward angle giving riders a momentary feel of plummeting to earth. Then it returns parallel to the ground and pulls the carriage back. Magnetic brakes and a shock absorber system keep the carriage on its hydraulic base. A 90-second to three-minute ride can be programmed in about 100 different combinations, so it is likely riders will get a slightly different experience each time.
"Las Vegas already is known for having the world's best shows and some of the world's best restaurants, now it has the world's best thrill rides." - Mike Gilmartin, of the Stratosphere
Gilmartin declined to release the cost of the new ride, other than to say it is "a multimillion-dollar venture." Resort officials project that it will take one to two years to recoup the cost of installing it.
The helicopter operation alone carried a "six-figure" price tag, Potter said. The high cost meant that they only had one chance to get it right.
"I've been on pins and needles for weeks. This (helicopter operation) was the unknown. We know the ride works. We just didn't know if we could get it on to the tower. Now it is there and secure and I feel real good." - Val Potter
The last three pieces -- the track, control tower and carriage -- were the most nerve-wracking for poolside spectators as the helicopter maneuvered to within 13 feet of the Big Shot. The final piece, the carriage, turned slightly to the left toward the building and away from the track causing some concern among the spectators as to whether it could be properly set in place. The top four floors of the 24-story Stratosphere tower were kept empty and some roads in the flight zone behind the resort were closed during the airlift. It took three tries to finally get the carriage on the track. When the third try succeeded, there was another big round of applause. "It was a matter of positioning the helicopter to place it (the carriage) within millimeters (on the track)," Potter said.
"It was just 100 percent concentration. The adrenaline was flowing -- you really didn't have time to be scared. Everybody had a rehearsed responsibility and since Friday we practiced (on the ground with a large crane) to make sure the load balanced perfectly and to check every single rope, chain and shackle was in perfect position. When the job was done, we were excited, very excited, giving each other the thumb's up." Janos Lakatos, Interactive Ride's crew chief
Lakatos said the rotor speed of the helicopter was 60 to 70 mph, but members of the crew were held by tether lines as they secured the pieces of the ride into place. Lakatos said crews from Interactive Rides will be working in shifts 24 hours a day, seven days a week to put the X Scream back together. It had been in one piece at its testing site in Logan, Utah. Lakatos said that between the ground, air and roof crews and hotel personnel about 100 people worked on the helicopter-lift installation.
The helicopter was provided by Siller Bros. Aviation of Incline Village, which has 40,000 hours of accident-free flying in high-profile airlifts, officials said. The first of about 100 test runs of the X Scream will take place in about a week to 10 days.
A ride on the X Scream is expected to cost $8, which is comparable to the Big Shot that costs $8 per ride and the High Roller that costs $5 per ride, Gilmartin said. About 500,000 X-Scream riders are projected during its first year of operation. Unlike a 510-foot roller coaster proposed by the Stratosphere in 2001, the X Scream has drawn no protests. X Scream was approved on April 10 by the Las Vegas Planning Commission amid no opposition.
The fate of the proposed roller coaster across the Strip is pending before the state Supreme Court. That ride, which had many opponents, including residents and nearby businesses, was defeated by the planning commission in September 2001. Weeks later it was turned down by the Las Vegas City Council. District Judge Valorie Vega, in November 2002, ruled in favor of the city, denying the Stratosphere's petition to build the ride. Gilmartin said before the X Scream project was brought before the council, resort officials met with area residents and explained that the new ride would not impact residents and would face away from the Meadows Village neighborhood. Still, neighbors in the area of Tam Drive and Boston Avenue on Monday were not thrilled with the teeter-totter installation. Their reaction ranged from apathetic to mild opposition.
"I go to the Stratosphere to play card games -- that's enough excitement for me," said Ray Jones, 76, a Meadows Village resident of 12 years. Diane Daily, a resident of the area for five years who goes to the Stratosphere on occasion to eat, said she does not oppose the X Scream, even though "it's just something else to add to all of the yelling and screaming we listen to from the tower." Jill Chambers, who for 26 years has lived in the neighborhood in the shadows of the Stratosphere -- and before that Bob Stupak's Vegas World -- said she does not think X Scream is a good idea.
"If I'm walking along the street and look up and see that thing hanging out above me with people on it screaming, I'll probably have a heart attack. I grew up around Coney Island, so I don't mind people screaming and having a good time, but this just doesn't seem like a good idea. Instead of building the teeter-totter, I wish the Stratosphere would put in a bingo room." - Jill Chambers
Mary Duenas, a resident of Meadows Village for four years, said she fears that one day something will go terribly wrong with one of the rides on the tower. "I just don't think it sounds safe."
Potter said there are four levels of safety checks on the rides -- daily, weekly, monthly and annually. "The daily checks range from the hydraulics to the restraints and the yearly checks include complete overhauls to some of the components," he said, noting there never has been a serious incident on either Stratosphere ride.
In 1996, there were incidents where parts of the High Roller broke, forcing a temporary shutdown and re-engineering of that roller coaster. Since then, there have been no repeats of such incidents, Gilmartin said. The Stratosphere rides, however, are routinely shut down for safety concerns when winds kick up to greater than 45 mph, he said.
In 2003, Broadway Showroom will be showcasing American Superstars (indefinitely, dark Thursdays), Viva Las Veas (afternoons, dark Sundays).
Outdoors Events Center will be showcasing Hootie and the Blowfish (5/24).
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