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Newton bought the Aladdin at a difficult time in Las Vegas' history. It was a period in which the federal government was cracking down on the mob and corporate ownership of gaming properties was in its infancy. In March 1979, four Aladdin officials were convicted in Detroit of allowing mobsters there to run the resort.

Crime bosses such as Doc Stacher and Meyer Lansky acquired shares in the hotel and attracted Frank Sinatra, who made his performing debut at Sands in October 1953. Sinatra later bought a share in the hotel himself.