Cal Neva Resort & Casino, previously known as the Calneva Resort and Cal-Neva Lodge, was a resort and casino in Crystal Bay, Nevada and Kings Beach, California, straddling the border between Nevada and California on the shores of Lake Tahoe. The original building was constructed in 1926 and became famous when the national media picked up a story about actress Clara Bow canceling checks she owed to the Cal-Neva worth $13,000 in 1930 ($ today). After burning down in a fire in 1937, the structure was rebuilt in 30 days. In 1960, entertainer Frank Sinatra purchased the resort with several others, including singer Dean Martin and Chicago mobster Sam Giancana.
Under Sinatra, the Celebrity Room was added alongside a helipad and the property remained open year-round. Sinatra's ownership gradually increased over the following two years until he owned 50%. Giancana's attendance at the property first provoked a rift between Sinatra and shareholder Hank Sanicola, and later resulted in Sinatra's gambling license being suspended by the Nevada Gaming Control Board. Sinatra initially leased the property to Jack L. Warner and later in 1968 to a group of investors. It passed through the hands of a series of investment groups until 1976 when it was bought by Kirk Kerkorian. The property closed for renovations in 2013 and has not reopened since. Larry Ellison purchased the property out of bankruptcy in 2018; in 2023 it was sold to McWhinney, a real estate company in Denver, who announced plans to convert it into a hotel.
History Early period The Cal-Neva Lodge was built in 1926 by real estate developer Robert P. Sherman. Canadian Army Colonel H. H. Betts went missing from his room at the Cal-Neva in 1929; his body was found over a year later some five miles away from the hotel. The lodge was first made nationally famous in late 1930 when actress Clara Bow canceled checks owed to the casino worth $13,000. She claimed that she had believed that the chips she was using while playing blackjack were worth 50 cents when they were actually valued at $100. In 1931, Nevada Governor Fred B. Balzar signed Assembly Bill 98, which legalized gambling in Nevada. After being purchased by developer Norman Blitz, it became one of Nevada's earliest legalized casinos. Rumors abounded that the owners of the lodge intended to put a gambling boat on the lake.Lankford (2010): p. 198 A group of investors bought the Cal-Neva in 1935, and recruited William "Bones" Remmer to act as its president and the pit manager of the casino.Woods Moe (1996): p. 89 That year a 13-year-old Judy Garland performed at Cal-Neva for the first time. The original building burned down in 1937, causing $200,000 ($ today) worth of damage; the incident was thought to have been arson but no charges were ever brought. The reconstruction effort took 30 days, with 500 men working on the project.Larson (2008): p. 96
Towards the end of World War II, the lodge was purchased from Remmer by Sanford Adler and a group of associates for $700,000; ($ today) Woods Moe (1996): p. 31 Adler renamed the property Cal Neva — dropping the hyphen — to match his Cal Neva hotel in Reno, Nevada.Woods Moe (2008): p. 207 However, this spelling of the name had been in common use since before the fire. Xavier Cugat was paid a reported $22,000 for a two-week stint at Cal Neva Lodge in 1946, reportedly the first time a nationally famous band performed there. Ownership was transferred once again on March 21, 1955, when a group led by Bert "Wingy" Grober purchased the lodge for $1 million. During this period, the hotel was frequented by members of the Kennedy family including John F. and his brother Robert. Author Scott Lankford claims that JFK used the lodge to carry on an "endless series of extramarital affairs with wealthy divorcees and Tahoe's notoriously ubiquitous prostitutes". The lodge served as accommodation during the 1960 Winter Olympics, held at nearby Squaw Valley Ski Resort. It has remained popular with skiers over the decades since.
Ownership by Frank Sinatra
Frank Sinatra first visited Cal Neva in 1951; his trip made the national press as he overdosed on sleeping pills and this was reported to the local sheriff.Kelley (1986): p. 168 Sinatra continued to frequent the lodge; on one occasion, he played a jam session with big band leader Harry James and actress and singer Betty Grable. Sinatra publicly bought the resort in 1960 through his company, Park Lake Enterprises.Freedland (1997): p. 292Clarke (1998): p. 225 Initially, he owned 25 percent of the property with Hank Sanicola and Paul "Skinny" D'Amato who each held 13 percent. Other smaller shareholders included Dean Martin. Chicago mobster Sam Giancana was said to be a silent partner in the business;Freedland (1997): p. 270 D'Amato acted as Giancana's man.Kelley (1986): p. 312 Sinatra gradually expanded his ownership of the casino; by 1962 he owned more than 50 percent share, with Sanicola holding 33 percent and Sanford Waterman owning the remaining shares.Kelley (1986): p. 313
The shareholders decided to open the property year-round; it had only previously opened for the summer season.Clarke (1998): p. 226 Sinatra built the Celebrity Room theater and installed a helicopter pad on the roof. He re-utilized Prohibition-era smuggling tunnels beneath the property to allow mob members to move around the property without being seen by the public. One led from near the main building to his private chalet overlooking Lake Tahoe.
The FBI already had the lodge under investigation at the time due to the connection to Joseph P. Kennedy Sr., who was staying there at the time that Sinatra's deal was finalized. There were concerns that Kennedy was involved in the arrangement of a casino for use by the American Mafia.Kuntz & Kuntz (2000): p. 141 The FBI suspected that the expansion was made using funds borrowed from Jimmy Hoffa.Kuntz & Kuntz (2000): p. 180 Following a request by Robert F. Kennedy, who had concerns over the press coverage of his and his brother's relationships with Marilyn Monroe, Sinatra made accommodation available for her for a weekend before her death on August 4, 1962.Marilyn Monroe's Personal Pucci Blouse - The Marilyn Monroe Collection LLC During this period she was not allowed to leave and only Giancana was allowed to visit her. Even her former husband, Joe DiMaggio, was turned away.Freedland (1997): p. 299 She attempted suicide through a pill overdose, but she contacted the reception desk, and was rushed to the hospital where she had her stomach pumped. This cabin, known as Monroe's, was still part of the guest accommodations, as was another known as Sinatra's, up until the closure of the resort. Also that year, a federal investigation took place into a prostitution ring being run from the foyer of the Cal Neva.Kelley (1986): p. 314
The Sinatra period saw extravagant parties and visits by celebrities such as Judy Garland, Liza Minnelli, Kim Novak, Shirley MacLaine, Sammy Davis Jr., Dean Martin, Lena Horne, Tony Curtis, Janet Leigh, Lucille Ball, Desi Arnaz and Richard Crenna. However, Sinatra's mood swings would sometimes determine how he responded to patrons and friends. Journalist Herb Caen reported that he could be dismissive and insulting to those who annoyed him. Sam Giancana was banned from the casinos in the state of Nevada, but Sinatra continued to allow him to stay at the Cal Neva lodge which resulted in Hank Sanicola seeking to remove himself as a shareholder. Although Sinatra sought to explain that Giancana was only visiting his girlfriend, Phyllis McGuire, the disagreement resulted in the end of Sinatra and Sanicola's friendship.Freedland (1997): p. 298 After Giancana was spotted on the premises, Sinatra had his gambling license suspended by the Nevada Gaming Control Board. Following this, Sinatra decided he wanted to get out of entertainment property ownership as he was being heavily criticized in the national press and pursued by law enforcement over illegal activities at the casino.Kelley (1986): p. 323 The Cal Neva Lodge was leased to Jack L. Warner in a deal which also saw a majority stake in Reprise Records sold to Warner Bros. Records and Sinatra gaining a one-third ownership in the new company.Clarke (1998): p. 228
Later period
After leasing it to Warner for four years, Sinatra sought to sell the property to Howard Hughes in 1967 as part of the renewal of his contract at the Sands Hotel and Casino.Kelley (1986): p. 371 Following a fallout between Hughes and Sinatra, the entertainer instead signed a contract with Caesars Palace. This included a requirement for Sinatra's stake in Cal Neva to be purchased by his new employer for $2 million, but instead the lodge passed into the hands of the same owners as Reno's Club Cal Neva in 1968 for $1.4 million.
The new owners oversaw the construction of a ten-story expansion to the property. This added 200 rooms to the lodge, for which permission was given although the Nevada State Park Advisory Committee opposed the move. They sought to re-open the Cal Neva on July 1, 1969, but instead it partly opened in May of that year with the new expansion opening the following month. The Ohio Real Estate Investment Trust purchased the lodge in 1970 for $6 million, with the aim to lease it to the U.S. Capital Corporation, who in turn sought to sublease it to Tahoe Crystal Bay Inc. The stockholders of the Ohio Real Estate Investment Trust filed a lawsuit against the company in 1973, which resulted in the Cal Neva being placed into federal receivership. After opening year-round since Sinatra purchased the lodge, it closed for the winter season in 1974 due to a drop in visitors blamed on the 1973 oil crisis.
The Cal Neva was sold in 1975 alongside the Crystal Bay Club to BKJ Corporation, which consisted of Everett Brunzell, Charles Ketchum, and Norman Jenson. The two clubs were purchased for a total of $9 million. However, their licensing application for Cal Neva was turned down by the Nevada Gaming Commission due to their lack of ongoing finances. The First National Bank of Nevada foreclosed on the property in early 1976 before selling it to Kirk Kerkorian, a significant shareholder in Metro-Goldwyn-Mayer. He owned the Cal Neva through his Tracinda Investment Corporation, a different entity than the one through which he owns his MGM shares. As part of the re-launch of the lodge, he convinced Dean Martin to return for a performance, for which Cary Grant was also in attendance.
Jon Perroton was arrested in 1985 for fraud after convincing Hibernia National Bank to loan him $23 million towards the purchase price of Cal Neva. He had claimed that he had the backing of Sheraton Hotels and Resorts. He was subsequently sentenced to 20 years in custody. That same year, the lodge was purchased by real estate developer Chuck Bluth. Under Bluth, the building was renovated and the exterior of the main building was restored to how it looked in the 1960s. On September 10–12, 1993, the lodge hosted the second annual Daow Aga Pow wow (a local Native American meeting) on Lake Tahoe. The hotel was named "Nevada's Best Getaway" in 1998 and cited as one of America's 50 Flagship Hotels.
Closure and renovations
Bluth sold the lodge to Ezri Namvar in 2005. However, the casino was in severe decline; by 2009 the revenue was around half of that received in 1992. Canyon Capital Advisors foreclosed on a $25 million loan, and an auction open across two states failed to generate any bidders. The property finally ceased operations on 31 March 2010. Several other casinos in the Lake Tahoe area closed around the same time.