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CASINO CHIP AND TOKEN NEWS | October · November · December 2001 21

WhenRobert Sherman constructed a logcabin in 1926, hewas undoubtedlyignorant of therich history that hewas buildingalongside hismodest endeavor.Over the course of75 years, longafter it leftSherman’s hands,the Cal-Neva hasbecome the proud owner of anintriguing life, steeped in star-studdedglamour, seedy underworld legend,and historical significance. Over theyears, its profound place amidstNevada and California history has ledto it being called “The Lady of theLake” and “The Castle in the Sky,”names well applied because of itspristine setting. If Sherman couldstand now, in 2001, and look back onthe impact his creation had onNevada history, it would probablybring a startled smile to his face.

Sherman was a wealthybusinessman from San Francisco,California, when he decided to tacklereal estate in Nevada. With twopartners, Harry Comstock andSpencer Grant, Sherman had a handin developing King’s Beach, TahoeVista, and Lake Vista. He decided tohave a log cabin built in order toentertain guests and potential realestate clients. Modeled after FrankBacon’s cabin in the hit Broadwayplay, “Lightnin”, he chose toconstruct his cabin straddling theborder between California and

Nevada. Thiseventually led tothe moniker “Cal-Neva” a name thatwould stick with itthroughout itsillustrious history.

Little elseappears to beknown about theman who foundedthe Cal-Neva, and,in the late 1920s,the property left his

hands and he faded out of the lodge’shistory. For commissions owed toanother real estate mogul, NormanBlitz, Sherman deeded the property tohim in 1928.

Norman Blitz, like Sherman,was a real estate businessman fromthe San Francisco Bay Area. At theage of 25, he began selling propertiesalong Lake Tahoe’s coast, as well asbuying up property in his own name.By the year 1932, Blitz owned 42,000acres around the lake. Establishing

by Amanda Anderson

and Allan Anderson

C A L N E V A R E S O R T

22 CASINO CHIP AND TOKEN NEWS | October · November · December 2001

his fortune in Nevada, he also had astrong hand in forming the state’shistory. His influences brought manynotable people to the state, leading tothe creation of the Washoe CountyLibrary, KCRL television and radio,and the University of Nevada, Reno’sPlanetarium. Despite his overwhelmingpresence in Nevada, he representsonly a small fraction of the Cal-Neva’shistory, having leased it out from themoment he came to own itand selling it by 1930.However, that this“Duke of Nevada,”as he came to becalled by FortuneMagazine, owned theCal-Neva demonstratesthe historically significantpast of lodge. That twoof the Lake Tahoe region’s mostprominent founders were the first twoowners of the lodge places it dramati-cally within important Nevada history.Of course, the lodge would go on tocollect an even fuller, richer historyon its merits alone.

In 1930, for what todaywould be considered the meageramount of $65,000, Bill Graham andJim McKay bought the Cal-Neva

from Blitz. While Grahamand McKay, like thelodge’s previous owners,helped to shape Nevadaculture and history, theirinfluence was of a farmore infamous nature thanthat of Sherman and Blitz. Inthe late 1920s, McKay and Grahambought and renovated Rick’s Resortin Reno. Ironically, Rick’s Resortwas forced to close because ofProhibition, and Graham and McKay

reopened it as a speakeasy calledThe Willows. By the 1920s,Graham and McKay also were incontrol of the Stockade of theCribs, the red-light district of

Reno; essentially, the two single-handedly ran the prostitution businessin that city from the 1920s to theWorld War II. It was with the moneyfrom these investments that they wereable to purchase the Cal-Neva in1930. Unfortunately for the pair, theywere arrested for mail fraud in 1934and sent to jail for a nine-year prison sentence. This allowed the Cal-Nevato fall under the control of a gentlemanby the name of Elmer “Bones”Remer, who was best known forliquor smuggling and his rough-and-tumble demeanor.

On May 17, 1937, the Cal-Neva suffered its first great tragedywhen a fierce blaze raced through it,burning the still-young lodge to theground. However, apparently havingcaptured the affection of a previousowner, the Cal-Neva’s history was notdestined to end on that fateful day.Norman Blitz, the brief owner from1928 to 1930, and contractor AdlerLarsen attended to the lodge’s speedyrecovery. Employing over 500 mento work around the clock, the lodgewas resurrected in just over 30 days.

The lodge next came underthe ownership of Sanford “Sandy”Adler, who, while not seeming to

have contributed heavily to theregion’s general historicitylike Blitz did, contributedmany of the Cal-N e v a ’sfamous and enduring

a t t r i butes. Under his rule, theIndian Room, initially called

the Wigwam Room, was built,featuring a collection of trophy heads,antlers, and skins along its walls.Three wigwams, giving the room itsoriginal name, graced the stage, and,even more impressively, a grandfireplace was set into the wall nearthe entrance. Massive graniteboulders, effectively bringing thenatural beauty of Lake Tahoe insidethe lodge, flanked the fireplace,which is still in existence today.

A few of Adler’s contribu-tions have not lasted to the presentday. During his time as owner, thelodge’s land included a small beach-front on which a sizeable steel pierwas constructed. As one of the perksfor his wealthy clients, Adler had asmall fleet of fast speedboats availablefor their disposal. At any time of dayor night, these boats would escortelite guests to any destination thatthey wished to visit. In addition tothis luxury in transportation, Adler

Gaming at the Cal-Neva Lodge - 1944


commissioned the building of atrolley car so that his guests couldtour Lake Tahoe’s north shore atleisure. Although setting him backover $18,000, the trolley became aregular tourist attraction of LakeTahoe, later transporting touristsstaying at the Tahoe Biltmore (thennamed the Nevada Lodge) andcurrently being housed at PonderosaRanch in Incline Village, Nevada.

At the age of 30, the Cal-Neva left the extravagant hands ofSandy Adler and entered into those ofWingy Grober. This era began thedraw of celebrities to the lodge’scomforts. Throughout his life,Grober found success startingup businesses in variouslocations, including placeslike Miami, Philadelphia,and Havana. An acquain-tance that fostered intofriendship from his MiamiBeach days was a man by thename of Joe Kennedy, the father offuture president, John F. Kennedy.The Kennedys, over the next span ofyears, often visited the Cal-Neva forrecreation and to escape the publiceye.

This marked the beginning ofthe Cal-Neva’s most decadent andluxurious era, brought to a climaxwith the introduction of FrankSinatra. The incredibly popularentertainer had become so attached to

the lodge and its pristine surroundingsthat he chose to undertake itsownership. Convinced that, under theright management and with the proper

investment power, the lodgecould achieve unparalleled

success, Sinatra bought outGrober and his partners in1960. After receiving hisgaming license, the singer

threw himself into revivingthe Cal-Neva, initiating

extensive remodeling andconstruction.

Among his many projects, thewell-known Celebrity Show Roomwas built, featuring a helicopter padon its roof. As its name suggests, thisroom became the showcase of aparade of celebrities that visitedduring Sinatra’s reign. Thenames of those that joinedthe attraction ranged fromglamorous Hollywoodstarlets to notoriousunderworld figures. JudyGarland, Mickey Rooney,Ella Fitzgerald, Jimmy Durante,Lena Horne, Tony Bennett, and theMcGuire Sisters are some of the starsthat patronized and performed at theCelebrity Show Room. MarilynMonroe as well as President John F.Kennedy’s family members were alsoregular visitors, which sparked antici-pated rumors of secret trysts.

In those early days, the lodgenot only consisted of the main buildingcomplex that housed the casino butalso included 57 chalets that served asguestrooms. Sinatra had one of thebest chalets with an incomparableview of Lake Tahoe reserved forMonroe to use during her many visits.Sinatra also kept a private chalet forhimself on the grounds. During hisownership, he had a secret tunnelinstalled between his chalet and themain casino that allowed hassle-freetrips back and forth. The bricktunnel is still in existence and boastsa staircase with the original patternedcasino carpeting of Sinatra’s heyday.Both Monroe’s and Sinatra’s chaletsare still available for the Cal-Neva’sguests to rent but, understandably, theentrance to the singer’s tunnel hasbeen closed off.

Of course, in addition to theother slew of famous faces frequent-ing the lodge, Sinatra’s famousclosely-knit group, the Rat Pack, wasoften in attendance. Consisting ofSinatra, Sammy Davis Jr., DeanMartin, Joey Bishop, and PeterLawford (who was married to PatriciaKennedy, President Kennedy’s sister),this group alone carried with it an

immeasurable amount of starpower. On occasion, Martin

and Sinatra were evenknown to have givenimpromptu performanceson the Celebrity Show

Room’s stage. Davis Jr.,Monroe, and singer Juliet

Prowse also took the stage forawe-struck audiences. At this time,however, it appears that the multitudeof celebrity faces was more expectedthan abnormal. While those likeMartin, Prowse, and the lodge’sowner crooned through songs onstage, other equally recognizable starsand politicians sat in the audience andplayed at the casino.


However, despite whatsome may assume, Sinatra did notonly increase the number of celebritiesin the area. He brought two storesinto the lodge, housing them outsideof the Show Room: Joseph Magnin’sand another men’s shop became available for curious shoppers. Froma Los Angeles artist, Ben Mayer,Sinatra also commissioned two largemurals to flank either the ShowRoom’s stage. The murals elegantlydepicted the evolution of showbusiness throughout history,beginning with the Stone Age andbringing it into modern times. Sinatraalso helped in redecorating the widelyknown Circle Bar. In a move thatamusingly shows S i n a t r a ’s sense ofh u m o r, he personally chose variousstuffed animals to place around theroom’s high ceiling. Each animal wasnamed after a personal friend ofSinatra’s, which no doubt initiated alot of teasing and ribbing among theelite group that had the honorbestowed upon them.

In his three short years ofcontrol, Sinatra ushered in the Cal-Neva Lodge’s most profitable andpopular era yet experienced. Not toosurprisingly, Sinatra was not ready to

sit back, relax, and enjoy hisaccomplishments. He had the desireto extend the lodge’s season year-round (at that time, it was only openfor business during the summermonths, closing on Labor Day of eachyear). He also had plans to utilize hishelicopter pad for guest excursions toReno, where he planned to buildSinatra’s Shangri-La. Opening upthat route of transportation betweenthe two cities could have increasedthe lodge’s profit m a rgin considerably.With a seemingly endless potential forimprovement, the lodge was an

alluring challenge. Unfortunately, forSinatra, that challenge ended afterthree years.

Nevada kept what was knownas its Black Book – a list of individualswho were unwelcome in the state’scasinos. They were not allowed toenter any gaming establishment, evenif invited as guests. Sam Giancana,an acquaintance, if not close friend,of Sinatra’s was on that list.

Giancana had the notoriousreputation of being linked to under-world crime organizations, andNevada was heavily trying to discour-age that world’s influence on its own.Many people have commented thatGiancana was Chicago’s most flamboyant mob boss since the daysof Al Capone, having wide socialcircles, an intense amount of power,and a tendency to mingle withHollywood stars. Whether or notGiancana visited Sinatra at the Cal-Neva in the past is unknown. What isdefinite, however, is that he did showup in 1963 and was subsequentlycaught by the FBI.

In 1963, Sinatra invited theMcGuire Sisters to perform in his

Circle Bar as seen in 1945

The Nevada/California border divides the pool


Celebrity Show Room. The musicalcombo consisted of three attractivesisters, and Phyllis McGuire, theyoungest of the combo, was known tobe Giancana’s girlfriend. WhenGiancana went to visit her at thelodge, authorities somehow got windof it and controversy ensued. Despitethe fact that Sinatra had an inarguableimpact on the local economy with hisflashy guests and premier entertain-ment, he broke one of Nevada’sinflexible rules when heallowed Giancana to enterthe Cal-Neva. Sinatra, ashe did every year, closedthe club on Labor Day thatyear. On October 22,1963, the Nevada Gamingand Control Board revoked hislicense and deprived him of theability to reopen the club in its newseason. It was in this way that Cal-Neva ended the most extravagant,profitable, and awe-inducing reign ofits existence. Even though it hasgone through many incarnations overthe years, by bringing the glamour ofHollywood to its floors, Sinatraarguably provided the lodge with itsmost fascinating era.

The ensuing decades wereones of decline, at least whencompared to the sudden resurgence ofinterest in the early 60s. Obviously,after that glamorous, short-lived eraended, it was difficult for people tolook at the lodge with somethingother than indifference. The famousfigures drifted away taking with themtheir draw and their money. The following twenty years saw the popularity and the prestige of thelodge fade into obscurity.

A succession of severalinvestment companies moved in torun the lodge but they never remainedfor more than a few years at a time. In 1964, the Crystal BayDevelopment Company leased the

Cal-Neva; to their credit, they introduced the area’s first ice show tothe Celebrity Room that summer. ACalifornia man with a varied past,Robert Peccole, was next in line tolease the lodge, running it from 1965to 1966. Peccole came to the Cal-Neva in the early 50s when heworked as a dealer for Sandy Adler.Over the years, his involvement in theNevada business world increased with

the ownership or management ofseveral gaming establishments,

such as Caesar’s Palace,Howard Johnson’s inSparks, A and P Slots inReno, and the Lake TahoeHotel in Incline Village. It

was the purchase of thatlatter hotel that caused him to

leave the Cal-Neva. The nextowners of the lodge were, coinciden-tally, the owners of Club Cal-Neva inReno; they purchased and operatedthe lodge in Tahoe until 1969,spending only two years with theproperty. The following twooperators of the Cal-Neva Lodgewere investment companies – theOhio Investment and Trust Companywhich bought the lodge in 1970 andKirk Kerkorian’s Tracinda InvestmentCorporation which took over theproperty in 1976.

It was the Cloud family –Ronald, Jessman, and their son,Stephen – that purchased the Cal-Neva in July of 1980. Like the earlycreators and owners of the lodge,Ronald Cloud was a Californian thatbegan dealing with real estate in orderto make his fortune. His ensuingventures involved a variety of arenas,including wholesale heating andplumbing concerns, wine vineyards,and a national bank. The Cloud familyeventually moved to Incline Villagein Nevada, where Cloud gained thereputation of being a skilled gambler.Nine years after their move, in 1980,the Cloud family purchased the Cal-Neva Lodge. Despite his constantassurances that he was a veryinvolved owner, Jessman Cloud wasonce quoted as commenting that“Cal-Neva [was] just a toy” forRonald. Regardless of how directlyhe was involved in the running of theCal-Neva, Ronald Cloud never deniedhow heavily he relied upon managersand advisors; his son, Stephen, anattorney in Fresno, supplied his fatherwith legal counsel regularly. Perhapsthe greatest skill that Cloud lackedwas that of public relations, at oncebeing a very determined and inflexiblebusinessman. He preferred pursuingthe business aspects of his lodge than

Poolside in the early 50’s


mingling with the guests that itserved.

Beginning with the Cloudfamily’s ownership, the Cal-NevaLodge became the center of a whirl-wind of legal battles. Cloud wasforced to deal with several hassles,involving various Nevada branches ofgovernment. At one point, when 46slot machines were tampered with,the Nevada Gaming Control Boardand the Tahoe Regional PlanningAgency stepped in. While it resultedin accusations and, ultimately, a largefine and unflattering press, Cloud wasexonerated from the charges. Yet,other problems followed and, in 1983,Cloud lost his gaming license andwas forced to give the lodge up. InJanuary of 1985, it was sold to CobaltCapital Corporation.

Unfortunately, the Cal-Nevastill had a while to wait before reachingcalm waters. The Cobalt CapitalCorporation was a newly formedorganization who’s Vice President,John R. Perroton, had questionablebusiness tactics. The Corporationpaid an exorbitant amount for thelodge, in excess of $17,000,000, andconsisted of ten shareholders thatPerroton refused to name. One of thefactors that allowed Perroton topurchase the lodge was a loan heobtained from Hibernia Bank.Ironically, barely a week after the

loan was issued, Perroton was convicted of fraud and jailed; thatcriminal activity surrounded acompletely separate loan thatPerroton had taken out from anotherbank. In connection with an autoleasing company, Perroton defraudedCrocker National Bank of $1,000,000and was subsequently caught by theFBI. Unfortunately, for HiberniaBank, the federal agency did notcatch him before they handed overtheir loan. When Perrotontestified that the Sheraton Corporationhad promised to back him, guaranteethe loan, and lease the lodge, hepresented documents with made-upnames and forged signatures. He wascharged a $1,000,000 fine andsentenced to twenty years in prison.

Hibernia Bank gained posses-sion of the Cal-Nevaand moved to liqui-date the property asquickly as possible,having claimedChapter 11 in thefederal bankruptcycourt. Severalpotential deals tookshape, one of themmade by a trio ofbusinessmen thatoffered a cash bid of$16,500,000. Forunexplainedreasons, this and

other deals fell through. However, inthe grand view of the Cal-Neva, thesecollapsedbusiness deals ultimately worked inits favor. In 1985, the Cal-Neva wasfinally sold to another California man,Charles Bluth, who would change theface of the aging lodge.

Just as Sherman, Blitz, andCloud were Californians with back-grounds in real estate, Bluth and hisfamily hail from Arcadia, California,where he was a real estate developerand builder. He was a newcomer tothe gaming industry and the LakeTahoe area, but, because of that, hisvision for the Cal-Neva Lodge was anentirely unique one. While waitingfor his application for a gaminglicense to be accepted, Bluth threwhimself into reviving the dormant

70th anniversay chip set by Chipco. This was the first stackable set made for any casino.

A cabin at the Cal-Neva Resort


lodge with this new vision. When hislicense was approved, on August 21,1986, his ambition and excitementopened the lodge’s door only a short21 hours later.

Yet, before his license wasapproved, Bluth had taken steps totransform the Cal-Neva, and his workcontinues to this day. When it cameinto his hands, he immediately beganrenovating the lodge, restoring it tothe original appearance it held afterbeing gutted by fire in 1937.

Completely renovatingthe hotel rooms,

coffee shop,and kitchen,he’s alsoretained someof the famous

landmarks ofthe lodge, such

as the massive stonefireplace with its natural boulders.This fireplace, beloved by so many ofthe Cal-Neva’s patrons, has onceagain become the focal point of theIndian Room. When Sinatra tookover the lodge from Wingy G r o b e r,the Indian Room had virtually disap-peared, being replaced by the moreextravagant Celebrity Show Roomand such additions as the helicopterpad. For the first time in the lodge’shistory, both the Indian Room and theCelebrity Room exist side-by-side,exhibiting the many phases of theCal-Neva’s history within the mainbuilding. In fact, instead of simplyresurrecting the Indian Room, Bluth

has converted it into a virtual shrineto Native American culture. Theroom has regained its original openbeam ceiling, and its walls areadorned with Native American art,historical artifacts of the local WashoeIndian tribe, and memorabilia fromthe original lodge. The delicate skillof Native American art is depicted inbaskets dating to the turn of the cen-tury as well as two Kachina dolls thatare rumored to protect the Cal-Nevafrom evil spirits.

To also express the respect hecarries for Native American cultureand history, Bluth commissioned abronze statue from David Manuel, ahighly respected sculpture in theAmerican art scene. The 16-foot-highstatue is an elaboratedepiction of ChiefJoseph, the man thatled 700 of his peo-ple over 1,800 milesin the pursuit offreedom in Canada.Captured only 50miles from the Canadian border,where he was attempting to meetup with Sitting Bull, Chief Josephrepresents bravery, spirit, andendurance during difficult times, traitsthat all people can admire. Bluth hasmade this statue a very visible focalpoint for his lodge, knowing that thearea the Cal-Neva resides in acted asa resting spot for the Washoe Indiantribe for thousands of years.

Bluth’s renovations did notend there. He also introduced manynew stores and a children’s arcadeinto the spot that J. Magnin’s used toclaim. The arcade is a lavishdistraction for guests’ children,including a pizza bar and up-to-datevideo games. The Circle Bar wasalso retained, now boasting a dazzlingcrystal dome that is suspended fromthe bar’s ceiling. Containing over7,000 hand-cut pieces of Germancrystal, the impressive structure tooksix months to engineer. To drawthose beginning new lives together,he incorporated several venues forweddings onto the lodge’s premises.A chapel for indoor weddings, a pool-adjacent gazebo for outdoorweddings, honeymoon suites, cateringservices, reception facilities, andflorist shops have all been added. In1991, he also added a 3,000 squarefoot European Health Spa that per-sonalizes its treatments for every individual. Dim lighting, soothingmusic, and complimentary bathrobesand beverages all add to the relaxingatmosphere that draw patrons lookingto pamper themselves.

In fact, from the moment heopened the doors of the lodge, Bluthtransferred the emphasis from agaming establishment to anatmospheric resort, a change non-existent in the lodge’s past. When hereopened the Cal-Neva in 1986, therewere no keno or poker tables; instead,he provided a little over 200 slotmachines and less than a dozen table

75th Anniversay chip set Common Back


games. In 1994, he cut these amenitiesdown by an additional 40 percent.His preference was to focus on thelodge’s ability to provide a moretraditional vacation, evidenced in histasteful, historical décor, theintroduction of wedding and spafacilities, and the introduction ofchildren’s entertainment. In line withall of these changes, Bluth renamedthe decades-old lodge to fit with itsnew transformation: after 70 years ofhistory, the Cal-Neva Lodge becamethe Cal-Neva Resort.

Built in 1926, this year bringsthe Cal-Neva Resort its 75th birthday.Not only can it boast the proud titleof “the country’s oldest casino,” it canalso demonstrate with pride the history that that name implies. Overthree-quarters of a century, the Cal-Neva Resort has been a witnessto a varied past, from its humble

beginnings to luxurious, celebrity-studded times to worrisome declineand, finally, to a much-deservedrevival. The progression of Nevada’shistory, its diverse people and culture,is evidenced within its four walls.From its ideal setting, amid rugged

snow-clad peaks and the serenity ofLake Tahoe, to its rich history, theCal-Neva Resort epitomizes enduringvacation ideals. And with the new-found interest and care being placedin it, it will be sure to retain its title as“the Lady of the Lake.” �

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