When auditors for Nevada reviewed its books, they discovered the El Rancho casino on the Las Vegas Strip had underpaid the requisite gambling taxes over nine quarters by $39,000 ($350,500 today).
Despite the claims of owners Beldon Katleman, et. al. that they believed they’d paid the proper amount, tax commissioners assessed a 100% penalty, the largest ever in Silver State history up to that date.
Rather than fight the issue, the El Rancho forked over the tax and the fine, $78,000 ($701,000 today).