Bill Harrah’s move to Lake Tahoe coincided with an expansion of the Nevada Gaming Control Board and its desire to see larger, more stable (read: fair) casinos in all gaming areas, but especially at the lake.
Nick Sahati and a few family members owned the Stateline Country Club, and while they had been at the same location since a dozen years earlier, there were reasons they might like to sell their casino. Bill Harrah was all ears.
The Stateline became available for less than $500,000 because it included several leases on the 16-acre parcel that could not be terminated, but Bill was patient. He immediately expanded the old club and accepted his friendly neighbors like the original Main Entrance, first opened in the 1940’s by Frank Mercer.
By the mid-50’s, the club was owned by a Basque brick-mason who moonlighted by doing work for the local clubs, and was especially fond of Bill Harrah. Bob Ring said, “He did some brick work for us, but we seemed to always be paying more for the work than we should. He also had a habit of trying to scam us at out lunch counter. We just kept paying him until he decided to take $80,000 for the tiny club.” It worked out well for everybody involved.
Next to be purchased was Bud Beecher’s Nevada Club, that Harrah had to pay $2 million for. A couple smaller clubs, the Tahoe Palace and the Tahoe Plaza eventually became part of the new Harrah’s casino property also.
With the 1960 Olympics coming to nearby Squaw Valley, Harrah and Ring rushed to finish the South Shore Room dinner theater and an expanded casino. The 750-seat showroom opened in 1959 with comedian Red Skelton. The $3.5 million expansion brought a fine theater to the area and let Harrah’s casino stress first-class entertainment.
While Harrah's took on several face-lifts during the 1960’s, it was in the early 1970’s that Bill Harrah and his wife, Sherry, finally finished their dream hotel.
Building broke ground in 1972 and the 18-story tower afforded 250 beautiful rooms, each 500 square feet and featuring stocked bars, refrigerators, bathrooms with TV’s and phones, and amazing views of the lake and mountains.
An expansion to the hotel was completed just four years later that added 290 rooms and brought Harrah’s Lake Tahoe the distinction of being the first casino to ever earn a five-star diamond rating.
Over the years the property expanded to almost 2000 slot machines and 100 table games, but changes in the gaming industry have seen those totals shrink to more manageable proportions. The amenities at the property continue to draw repeat visitors and there are unbelievable views from the 18th story restaurants.
While Harvey Gross once had land Bill Harrah wanted, and Gross later purchased Harrah’s Lake Club for over $5 million before expanding his own property with a 12-story high-rise, the competing casinos built an underground walkway so their guests could comfortably walk between the casinos during the snowy winter.
Harvey’s expanded in 1987 and now has 740 hotel rooms. However, it was Harrah’s Entertainment group that eventually wound up owning both properties, paying nearly $650 million for Harvey’s.
Both properties continue to fill rooms in the summer and enjoy success throughout the year.
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