The heyday of the
Free State was over by the 1940s. Because of conflicts with the
United States Treasury, the Hollywood Dinner Club was shut down in the late 1930s. The local clubs found it increasingly difficult to attract major entertainment figures. Gambling had been legalized in
Nevada in 1931 and this distinct advantage over Galveston gradually lured
mob figures such as New York City's
Bugsy Siegel to
Las Vegas. The competition created by the up-and-coming entertainment center in the
desert substantially challenged the island on the Gulf. Still even during the later years the Balinese Room was able to attract the likes of
Tony Bennett and
Peggy Lee, among others. By the late 1940s corruption at the Texas state and county level was in decline. As investigation of the Maceo activities became more serious, Sam and Rose began plans to move their empire to Nevada. Thanks to Sam's dealings the Maceos became major investors in the
Desert Inn, which opened in 1950, the largest and most elaborate casino resort on the
Las Vegas Strip at the time. Sam and Rose Maceo transferred controlling interest of most of their Galveston empire to a new group dominated by the Fertitta family with investments coming from business interests around the island. The Fertitta group, however, never wielded the influence that the Maceos had. Rose Maceo died in 1954 from heart disease. His death made national
obituary news. ==See also==