Las Vegas Sun

April 25, 2024

Death of gaming leader Kelley almost unnoticed

The death of a longtime leading Las Vegas gaming executive last month might have gone unnoticed had the resort that he ran for 34 years not closed last week.

Joseph H. "Joe" Kelley, longtime chairman of the Showboat hotel, which in 2000 became the Castaways, died Jan. 7. He was 93.

A death notice for the Las Vegas resident of 63 years ran in local newspapers, but it mentioned nothing of Kelley's tenure at the Showboat (1954-1988), nor of his significant role in building resorts in Las Vegas and Atlantic City.

But Kelley, who friends say did things in an unassuming manner, probably wanted it that way.

"He had an Irish temper but, if he got angry over something, he'd quietly go home and come back to face the issue when he was no longer angry," said Frank Modica, who long worked as general manager under Kelley. "Joe always wanted to handle things quietly if he could."

Kelley is remembered as an innovative gamer who helped popularize what now is called the neighborhood casino concept and was part of a group of investors that built the Showboat from the ground up half a century ago.

During Kelley's tenure at the Showboat, the 49-cent ham and eggs breakfast became a popular attraction, bowling lanes were built and the Showboat Invitational became the oldest stop on the Professional Bowlers Association tour. Also earnings for the resort on Boulder Highway skyrocketed.

Kelley also approved Modica's concept in the 1980s for bringing major professional boxing, pro wrestling and roller derby to the Showboat Sports Pavilion, an arena carved out of a huge second-floor room that had been considered for convention services but had long sat idle.

"It was the first attempt to build a casino away from the Strip and away from the core of Fremont Street," said Modica, who joined the company in 1959.

"So many people said it would never work. And, 50 years later, they were right."

The bankrupt Castaways closed its doors Thursday night.

"Why it worked so well for so long was that the Showboat was a family place with good food at low prices and a friendly atmosphere," said Modica, who also served as president of the Showboat and now is retired.

"Joe was on the floor every night talking to the people, listening to their beefs and their compliments."

Kelley also was known for his witty, folksy philosophies that included "we're all smart about something" and "if you are going to be a sucker, be a quiet one."

Born Feb. 14, 1910, in Cass, Ark., Kelley came to Las Vegas in 1941 and served in the Army Air Corps during World War II. He remained an avid pilot for much of his life and owned a single-engine aircraft.

Kelley got his start in gaming as an investor in the downtown El Cortez with gaming legend J. K. Houssels Sr. In the early 1950s, Kelley, Houssels and several other investors decided to take a chance on the Boulder Highway site.

In the late 1950s, the bowling lanes that became a trademark amenity for the property at 2800 Fremont St. were built.

In April 1979, Kelley was promoted from president/vice chairman to chairman of the board following Houssels' death. Almost immediately, hotel net earnings jumped 15 percent and operating revenues climbed 11 percent.

In October 1983, the Showboat signed a lease agreement to build the $170 million, 500-plus-room Showboat in Atlantic City.

At the time, Kelley heralded the expansion into the Atlantic City gaming market as an opportunity to build "another one-stop, family fun spot with bowling, swimming, gaming and accommodations." At the same time, plans were going forward to expand and renovate the 460-room Las Vegas Showboat.

But, five years later, while in his late 70s, Kelley caught wind that some board members of the publicly traded company wanted him replaced with younger blood, according to a 1988 Sun story.

True to form, Kelley quietly and abruptly quit rather than being shuffled into an emeritus position.

Ten years later, Harrah's Entertainment Inc. bought the Showboat, keeping the name. VSS Enterprises bought the property from Harrah's in March 2000, and renamed it the Castaways.

Kelley was a member of the Daylite Mason Lodge and the Zelzah Shrine.

He is survived by his wife, Esther J. Kelley.

He was interred at Palm Memorial Park.

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