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Among the few hoods to operate in the open was Mobster Michael ("Mustache Mike") Contino of Providence. He offered to become the business partner of Stewart Siegel, who is setting up a school to train dealers and croupiers for the casinos. Contino promised financial help, as well as his services in negotiating a favorable labor contract. Siegel decided that it was an offer he could refuse.
Much of the mob activity involves unions. Hotel and restaurant-employees are being recruited by Teamsters locals from Philadelphia and northern New Jersey with the blessing of Mafia Muscleman Anthony ("Tony Pro") Provenzano, who operates out of semiretirement in Hallandale, Fla. The Association of Public and Private Labor Employees, known as Apple and run by New York Mafiosi, has been organizing employees of Atlantic City's private detective and guard services. A Cincinnati union with ties to Chicago Mafia Boss Anthony ("Big Tuna") Accardo has been signing up bartenders.
Warns Atlantic County Prosecutor Richard Williams about the mob-dominated unions: "They can control who works. It's a source of tremendous unchecked power that, in a town like this, can control the government."
There has been some pushing and shoving among the rival Mafiosi but no shooting or open warfare so far. Some law-enforcement officials expect the top Mafia dons in the U.S. to designate the resort an open city, meaning that any member of the criminal brotherhood or its underworld allies can seek a piece of the action, as is the case in Las Vegas. The Mafia is already tolerating a group of Cuban hoodlums, the Malagamba gang from northern New Jersey, which has gained a foothold in Atlantic City's illicit market for cocaine, marijuana and hookers.
Can New Jersey stop the hoodlum onslaught? Probably not. Concedes Michael
Siavage, executive director of the State Commission of Investigation: "Nobody's claiming that we can eliminate organized crime." But the New Jersey Casino Control Commission is trying to keep the casinos as free of underworld links as possible. Applicants for a casino license are required to fill out an 83-page form, spelling out their personal backgrounds, business history and sources of financing. Then they must go through investigations lasting six to nine months. Only one application, from Resorts International, has been received thus far. The commission is also drawing up stringent regulations for casino operations, including an accounting system designed to prevent anyone from skimming off profits to evade taxes.
Many investors can ill afford these months of preparation and waiting. Resorts International has laid off 600 employees, 75% of its work force at the Chal-fonte-Haddon Hall Hotel. Some investors may be unable to keep up interest payments on their loans unless gambling gets under way soon. Lenders may withhold additional loans until the first casino —probably Resorts International's entry —has been in operation for at least six months. "And by that time," complains one investor, "Miami may have casinos." Not to mention New York's Catskills and Pennsylvania's Poconos.