Casinos built by the mafia (and how they turned out)

As Hollywood has taught us time and again, organized crime had a significant hand in building up Las Vegas and Atlantic City during the mid-20th century. The Mob’s involvement with casinos was well documented, but did you know that the American Mafioso also branched out to build gambling establishments in other parts of the country? 

To be more precise, members of various criminal organizations either funded or managed several casinos outside Nevada and New Jersey. Some of these gaming venues were built as far back as the 1940s. And while the majority of them are no longer in business, some survive and thrive today—with a clean ownership, of course. Let’s take a look at some of the most notorious casinos built by the mafia and their current state.

Illinois Casino Murders Lead to Exposure of Mob’s Gambling Operations

The very first sign that the Mafia had its claws in gambling markets outside Las Vegas and New Jersey emerged in 1965. That was when the Illinoi Crime Commission released its landmark report titled The Operators.

This investigation was prompted by a series of gruesome murders involving individuals linked to illegal gambling operations in the Chicago area. The commission established that the mob had killed five people between December 1964 and February 1965 because they knew too much about the whereabouts of the organization’s leader Sam Giancana.

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As the investigation found out, the mobster had interests in various establishments throughout Illinois, Indiana, and Louisiana. These included taverns, nightclubs, and even a couple of casinos operating on Indian reservations.

One of those two properties went by the name Zodiac Wheel Gambling Establishment. It was situated on the Ho-Chunk Indian Reservation in Nekoma, northern Wisconsin, near the border with Minnesota.

The Zodiac opened its doors in the summer of 1963, offering slot machines, blackjack, and poker. According to some reports, the casino was visited by famous entertainers like Bob Hope and Joey Bishop on its opening weekend.

Giancana’s right-hand man Tony “Joe Batters” Spilotro was in charge of the operation along with his brother Michael. However, the Zodiac’s days were numbered. Only six weeks after the casino started working, Dillsboro, Indiana, police discovered that the establishment was selling alcoholic beverages without a license.

Authorities raided the venue and seized all gambling equipment. Although the Supreme Court eventually quashed the conviction due to insufficient evidence, it was game over for the Zodiac. Its owners failed to secure new gambling licenses, and the property shut down in early 1965.

Today, the site stands empty. There have been some attempts to revive the tourism industry in Northwoods, with casinos being a part of this strategy. As things stand now, the nearest gambling establishments to Nekoma are the Lac du Flambeau Chippewa’s Lacey’s Landing Casino and the Northern Lights Casino run by the Mole Lake Chippewa. Both offer slots, table games, live poker, and lodging options.

Calumet City’s Ten Eyck Motel: First Mob-Built Casino Outside NV, NJ

Historians believe the Zodiac was the first casino built and operated by the mob outside Nevada and New Jersey. But it wasn’t the first one. That distinction belongs to the Ten Eyck Motel. This nondescript facility located in Calumet City, Illinois, just south of Chicago, is considered the first mafia casino.

Contrary to the Zodiac, the Ten Eyck was not designed as a gambling establishment. It originally opened its doors in 1948 as a regular roadside motel. Its fortunes changed three years later when the Illinois lawmaker Edward S. Williams proposed a bill to prohibit all forms of gambling within the state’s borders.

Calumet City’s officials grew worried about the potential impact of Williams’ proposal on their municipality’s finances. Nearly half of the city’s revenue came from the illegally operated gambling facilities inside the Three Georgios Hotel and the Calumet Club. The local authorities feared they would go broke if the legislature approved the anti-gambling bill.

Six outfits of the Chicago Mob came up with a solution. They offered to buy the Ten Eyck and transform it into a full-scale gambling resort. The municipal council welcomed the idea, agreeing to sell the motel for $175,000.

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The mafia don Tony Accardo gave the green light for the project after learning the resort would be situated next to a gas station owned by his enemy, Sam Goldberg (a.k.a. Tex).According to some accounts, this move enabled the Accardi gang to get rid of their longtime rival.

Chicago journalist John Binder described the Accardo-Goldberg feud in his book The Mob in Chicago:

“In short order, Goldberg mysteriously stopped supplying gas and repair services to the numerous mob-connected cars traveling the main highways that passed right in front of the motel.”

The mobsters renamed the facility Cal-U-Ci (an acronym formed of the first letters of Calumet City) and began offering gambling, live entertainment, and other illicit services. In addition to slots and table games, guests could enjoy prostitution, drug trafficking, loan sharking, and murder.

Cal-U-Ci soon became one of the top Midwest gambling destinations, drawing large crowds from Illinois, Indiana, Michigan, and Wisconsin. The mafia used the money generated by the resort to expand its influence in the region.

The authorities eventually caught up with the mobsters. In 1962, the Illinois Supreme Court ruled that Cal-U-Ci was operating illegally, leading to a yearlong legal battle. The resort reopened in 1963 after Calumet City voters approved a referendum authorizing gambling within the city’s limits.

Cal-U-Ci changed its name to Calumet City Casino in the late 1970s. The property switched owners many times over the following decades before Harrah’s Entertainment purchased it in 1996. Today, the venue operates under the name Harrah’s Casino & Hotel Chicago Kalamazoo.

Harrah’s Chicago offers more than 1,000 slot machines and over 35 table games. In addition to gaming options, the resort features nearly 300 rooms, a lounge, a steakhouse, a deli, and an Irish pub.

Iowa’s Clarida Drug Store: A Pillar of the Community … and an Illegal Casino

From what we’ve seen so far, it wouldn’t be an exaggeration to say that midcentury American mobsters knew how to diversify their income streams. While the Outfit ran the Calumet City Casino, another branch of the Mafia entered the gambling business in Rock Island, Iowa.

It happened in 1963 when the local pharmacy transformed into an illegal casino. As odd as it may seem, this establishment had all it took to become a first-class gambling house.

Known as the Clarida Drug Store, the facility boasted a plush lounge with a soda fountain, rocking chairs, booths, and armchairs. Local residents used to gather there to drink a malt, read a newspaper, and socialize.

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The drugstore’s owner, Stanley C. Clarida, played an active role in the community. He served as the president of the Rotary Club, the Elks Lodge, and the Scottish Rite Cathedral. On top of that, he sat on the board of directors of the National Exchange Bank & Trust Company.

Being such a pillar of the community, it must have come as a shocker for the good citizens of Rock Island when the FBI raided the drugstore in October 1965, seizing six sets of dice and ten decks of cards.

Agents detained four men, including Louis Fazzini, a.k.a. Tall Guy, one of the top enforcers in the Chicago Mafia. Authorities believed the Clarinda Drug Store had been in the Tall Guy’s care ever since his boss, Sam Giancana, received orders from his superiors to set up a casino in the area.

Unlike the owners of the Calumet City resort and the Wisconsin casino, the Mob didn’t put a single cent into the Clarinda Drug Store. Instead, the criminals struck a deal with Clarida, compelling him to turn his pharmacy into a gambling den.

As Clarida told the court at Fazzini’s trial:

“They said, ‘We’re going to run it. You won’t have to do anything except collect some money that’s taken there.’ I says, ‘Well, I got a big family, and I got to have money to support them. I haven’t got it any other way, and I haven’t got it running a casino.'”

Clarida testified against Fazzini, sending his accomplice to prison. The drugstore’s lounge remained closed after the raid, and the main facility stopped selling drugs in 1970, relocating to a new address. The old building stood empty until the city bought it in 1974.

Today, this property houses Rock Island Parks and Recreation Department’s office. There are no signs of decay or abandonment; on the contrary, the place looks tidy and neat.

Visitors can use the building’s lobby to buy tickets and rent boats for Blue Grass Island, a public park and campground situated on Middle River, one of the Rock River’s branches. The island doesn’t feature a casino, but you can find some great betting sites if you .

Miami’s Silverbird – A Glitzy Casino That Drew Celebrities and the Mafia

Florida was off-limits for organized crime until the Havana government nationalized American-owned businesses in 1959. The state suddenly found itself flooded with Cuban refugees and the mobs that had controlled the city’s casino industry.

Three families vied for control of Miami’s underground scene: the Trafficante, the Gualtieri, and the Licavoli crews. All of them collaborated with the New York and the Kansas City families.

Miami’s criminal elite tried to replicate Las Vegas by building luxury resorts with casinos. One of those resorts was the Silverbird, a glitzy facility that attracted celebrities and mobsters.

Frank Sinatra was one of the club’s frequent visitors. So were Sam Giancana and Tony Accardo. The latter reportedly invested $200,000 in the business, persuading other mobsters to follow his example.

The club’s management promised an unforgettable experience to all visitors. In addition to slot machines, roulette, craps, and baccarat, the Silverbird featured burlesque shows, beauty pageants, and live music performances by famous artists, including Sammy Davis Jr. And the Supremes.

However, the Miami Beach Police Department accused the club of breaking a number of laws. The charges included serving alcohol to minors, employing underage dancers, and staying open 24 hours a day. The authorities shut down the Silverbird in September 1963.

The case went all the way to the Florida State Supreme Court, which ordered a lower court to hold a new hearing. The club reopened in March 1965 but met its end less than two years later. A fire broke out on the roof, causing $1 million worth of damage.

Although investigators dismissed the notion of arson, nobody attempted to revive the Silverbird. Part of the facility was torn down in the 1970s, making room for a parking lot. The theater part of the former club still stands, housing the Magic City I theatre and the AMC Magic Theatres complex.

The site also comprises two hotels: Hyatt Regency Miami Beach Resort and Spa and Ritz Carlton South Beach. Both offer a full range of casino games, although they are not your average brick-and-mortar casinos.

Instead of going to the gaming floor, you can request a room with a couch that folds out into a full-size bed. Behold… the room is your casino!

New Hampshire’s Clearwater Resort – Joe Kennedy Made His Son JFK Promise To Stay Away From Gambling

New England wasn’t immune to the Mafia’s gambling expansion either. The Boston branch of the organized crime group took over the local numbers rackets in the early 1960s before venturing into other fields.

Documents obtained through the Freedom of Information Act showed that the FBI had reasons to believe the New England Mafia ran a hotel-casino resort in New Hampshire in the 1960s. The agency launched an investigation in July 1965 after receiving information about suspicious transactions at the Clearwater Resort in Center Harbor.

The property belonged to Joseph Kennedy, the future US president John F. Kennedy’s father. Having made a fortune in stock speculations, Joe Kennedy decided to turn the mountainous lake region town into a tourist hotspot.

He acquired the Clearwater in the early 1950s and expanded it with additional cabins and cottages that could host 450 guests. According to some sources, Kennedy planned to buy more land in the area and create a tax-free municipality called Kennedyville.

The FBI found no indications of Mafia involvement in the Clearwater’s affairs. Agents concluded that Kennedy had leased the resort to a private company that might have hired outside help. JFK had vowed to his father to stay away from gambling, and there’s no evidence that he had broken that promise.

After Kennedy’s death in 1969, his wife sold the Clearwater. It changed hands many times in the following decades until finally closing down in the late 1980s. A fire destroyed what was left of the buildings in the early 1990s, leaving no trace of the resort.

Today, center Harbor is home to a handful of small inns and bed & breakfasts. Visitors can stay at Gingerbread House, Bayview Conference Center, Innesfree Launch Services, and Millfall Camping Cabins & RV Park. None of these properties has a casino, but there are a few gaming venues in nearby Laconia, which we will explore in the following chapter.

New Hampshire’s Foxdale Resort – Kenneth McCarthy Got 10 Years for Tax Evasion

While the FBI was probing the Clearwater, agents launched a similar investigation into another New Hampshire gambling resort known as Foxdale.

Like the Clearwater’s Joseph Kennedy, the Foxdale’s Ken McCarthy had political connections. He was a close friend of Governor Meldrim Thomson Jr., whose daughter had worked at the resort.

Similarities between the two cases did not stop there. Just like the Clearwater, the Foxdale offered lodging, restaurants, horseback riding, boating, and “social gambling,” as McCarthy called it.

However unlike Joseph Kennedy, McCarthy refused to cooperate with the authorities, claiming the resort’s financial records were none of the FBI’s business. Agents secured a warrant to search the premises and confiscate $577,000 in cash and $2 million worth of checks and money orders.

McCarthy faced several charges, including operating a gambling resort, evading taxes, and obstructing justice. He was acquitted of the first count but received a 10-year sentence for tax evasion. The Foxdale shut down shortly afterward.

Most of the resort’s land is now covered by Lake Kezar, a reservoir created in the 1960s to provide water to the Nashua area. The surrounding hills are home to the Bear Camp Lake Wayside State Park, which offers hiking trails and picnic tables.

If you’re looking for a casino, head to nearby Laconia, which boasts three gambling venues: Harrah’s Lanconia, Turtle Mountain Casino, and Kancagus Casino. All three offer slot machines and table games while the first one also runs a hotel with 150 rooms and suites.

Kansas – The Jayhawk International Casino – A Mob-Backed Business Run by Women

Hollywood movies often depict women as the weaker sex that mobsters use to cover their tracks and throw the police off their trail. Real life isn’t much different from the movies, as shown by the story of the Jayhawk International Casino.

Located in the town of Bonner Springs, just across the Missouri River from Kansas City, Kan., the Jayhawk was a mob-backed business run by women. The resort’s official manager was a Chicago resident named Shirley Sutton, who went by the stage name Pearl Kelly.

Authorities believed the real boss was Kathryn Tucker, a.k.a. Casey Teeter, a prominent figure in Kansas City’s criminal circles. The FBI had Teeter under surveillance due to her gambling, prostitution, and narcotics operations.

Agents learned that the Jayhawk was Teeter’s headquarters and requested a wiretap authorization to intercept her communications. The Justice Department denied the request, saying there was insufficient proof to connect the suspect to organized crime.

Undeterred, the bureau decided to use the Racketeering Influenced Corrupt Organizations (RICO) statute to bring down the Jayhawk and related establishments. Code-named Operation Lost Children, the sting targeted brothels, strip clubs, and other adult businesses.

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The authorities shut down the Jayhawk in April 1984. The subsequent raid of a nearby tavern known as The Kitchen resulted in the largest mass arrest in the Johnson County history.

Police rounded up 113 people, including some individuals previously cleared of criminal charges due to insufficient evidence. Among the arrestees were several politicians, judges, and law enforcement officers.

The building that once housed the Jayhawk International Casino still stands but is currently abandoned and heavily dilapidated. Most of the windows are broken, and plants are growing out of the facade.

Bonner Springs does not have any casinos anymore. The nearest gambling venues are the Hollywood Casino at Kansas Speedway and the Ameristar Casino Hotel Kansas City.

Minnesota’s Palomino Lounge – Robert “The Cook” Gaasch Ran a Mob-Controlled Casino

Nestled in the heart of downtown Hibbing, a small city in northern Minnesota, there used to be a bar called Palomino Lounge. The establishment gained notoriety in the 1970s after Robert “The Cook” Gaasch turned it into a mob-controlled casino.

Born in Finland, Gaasch moved to the US in 1957. After spending some time in Chicago and New York, he settled down in Hibbing, finding a job as a cook. Gaasch quickly rose through the ranks, gaining a reputation as an excellent chef.

His culinary skills helped him make contacts among the local mafia dons. Gaasch struck a deal with the Chicago Outfit, allowing the organized crime group to turn his employer’s bar into a casino.

Along with slots and table games, The Cook introduced live poker to the Palomino Lounge. Gaasch recruited attractive dealers from neighboring Canada, promising them well-paid jobs. Many agreed to come, drawn by The Cook’s charm and the opportunity to work in a casino.

Authorities kept a close eye on the Palomino but never managed to catch Gaasch red-handed. Then, in August 1977, the FBI received a tip that could break the case wide open.

Agents learned that The Cook was scheduled to pick up $25,000 in losing bet money from two Chicago mobsters. They staked out the meeting spot and arrested both criminals and their driver, who turned out to be Gaasch.

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A search of the vehicle uncovered a suitcase containing $19,748 in cash, mostly composed of one-dollar bills. Gaasch initially denied any wrongdoing but then changed his plea, admitting he was running an illegal casino.

The Cook avoided a lengthy prison term, receiving a one-year suspended sentence and two years of probation. The palomino was shut down, and its owner changed the business profile, turning it into a restaurant called Bob’s Big Bitty.

Gaasch continued to work in the hospitality sector. At some point, he managed nine Bob’s Big Bitty eateries in Minnesota, South Dakota, and Montana. The original location on East 28th Street still exists, now operating as Red Door Restaurant & Lounge.

There are no casinos in Hibbing, but you can play slots and table games at the Palace Casino in nearby Hinckley.

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Montana’s Omar’s Place – The Mob Took Over a Strip Club after the Owner’s Death

Montana’s Omar’s Place is the only establishment on our list that started as a full-blown strip club and ended up being managed by the mob. Unlike all the other casinos, Omar’s has not one but two colorful founders.

The club owed its existence to Omar Loesch and his girlfriend, a burlesque queen known as Tiny Alice. Born in Germany, Loesch joined the Luftwaffe at the age of 18. He fought in World War II, getting captured by the British army toward the end of the conflict.

Imprisoned in Scotland, Loesch learnt English and married a British soldier’s girlfriend. The wedding didn’t prevent his deportation to the US, where he faced charges of war crimes. Found guilty, Loesch received a symbolic one-year sentence and was immediately set free.

Undeterred, Loesch decided to stay in America. He settled in Billings, Montana, and opened a strip club named Omar’s Place. The business flourished, attracting up to 1,000 customers per night.

Loesch died in a plane crash in 1966, and his dancers/girlfriends took over the club, renaming it Tiny Alice’s Omar’s. Four years later, the FBI received intel suggesting organized crime figures from Chicago and Los Angeles had taken over the business.

Authorities launched an investigation, gathering enough evidence to obtain a warrant for searching the club. Agents found boxes of uncashed checks totaling around $400,000. Club executives explained they had never bothered to cash the correspondence because they deposited the money directly to the dancers’ bank accounts.

No one was charged due to insufficient evidence. Tiny Alice continued to run the show until retiring in the late 1980s. Omar’s Place changed owners many times but managed to survive until 2010, when a fire destroyed almost entire building, leaving only the façade untouched.

Local authorities want to raze the remnants of the old strip club and build low-income apartments there. Several companies have submitted proposals, and the city commissioners are expected to make a decision in January 2022.

Billings has seven casinos, the largest being Q2 Nightclub & Event Center, Metra Card Room & Poker Room, and Montana Lilac Casino.

Pennsylvania’s Cadillac Club – Named after the VIP Booth with a Stripping Stipper

Pennsylvania’s Cadillac Club is the youngest mafia casino on our list, having operated illegally during the late 1970s.

Run by Allentown’s bar king Frank Buysego, the Cadillac was a popular hangout spot for the Lehigh Valley elite. The club boasted a restaurant, a cocktail lounge, and a dance floor where strippers performed inside a glass-enclosed booth shaped like a Cadillac.

Buysego named the VIP section after the most expensive car in his fleet, charging $50 for a 15-minute session. The booth was so popular that the cadillac sometimes had two girls working together to meet customer demand.

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Despite generating over $1 million in annual revenues, the cadillac did not have a gambling license. And the Pennsylvania State Police knew it, launching an undercover operation dubbed “Goldstar.”

Officers posed as mobsters, striking a deal with Buysego to buy half of the Cadillac. The handover was supposed to happen on Jan. 10, 1979. Instead of finalizing the purchase, the police raided the club and arrested 66 people.

Buysego received the harshest sentence: five to twelve years in prison. After doing his time, he returned to the bar business, running Frank’s Steaks in Allentown until his retirement in the mid-1990s. The Cadillac’s booth is displayed at the Lehigh Valley Heritage Museum.

The museum is temporarily closed due to renovations. Visitors can check out the restored 1953 Cadillac Sedanette, which used to belong to the exhibit.

If you crave some casino action, head to Wind Creek Bethlehem, the largest casino in the state. It has over 3,000 slot machines and 200 table games, including baccarat, blackjack, pai gow, Spanish 21, and roulette.

New York’s La Rocca – Carlo Gambino Had Shares in the Carteret Amusement Co.

La Rocca is the only establishment on our list that still operates, albeit under a different name and without any shady ownership links.

Located on City Island in the Bronx, La Rocca opened in the early 1960s as a restaurant/nightclub. The resort’s founder and namesake was Gaetano “Tom” Luca, a well-known figure in the Bronx mafia.

Luca spared no expenses in decorating the venue, bringing sculptures, antique furniture, and chandeliers from Italy. The restaurant featured a 20-ft fish tank and an aquarium in the ladies’ room. The dance floor hosted live bands playing Italian and American music.

According to some accounts, Luca’s place was a front for a casino that generated millions of dollars in annual revenues. There’s no solid proof of that, though. The authorities never caught Luca red-handed, and a 1963 raid of the restaurant had yielded no gambling paraphernalia.

Undeterred, the FBI launched a wiretap operation aimed at Luca and several other New York mobsters. The bug picked up conversations mentioning La Rocca but never providing concrete evidence of illicit activities.

The bureau needed a bigger fish to fry, so to speak. Agents discovered that Luca’s partners included the then-boss of the Gambino crime family, Carlo Gambino. They had created a front company named Carteret Amusement Co. that reportedly owned a beach club in New Jersey.

Following a lengthy investigation, the FBI raided the Carteret club and found no traces of the Mafia’s involvement. Disappointed, the bureau abandoned the La Rocca case. Tom Luca died in 1967, officially of a heart attack.

City Island’s Joel Fish Restaurant & Bar now occupies the site of La Rocca. It serves seafood and fish specialties and occasionally hosts live music events. The venue does not have a casino.

The closest gambling parlors are the Empire City Casino at Yonkers Raceway and Resorts World New York City. The former offers over 5,300 slot machines and electronic table games as well as simulcast racing. The latter is the biggest casino in the New York City, featuring 100,00 square feet of gambling space with 1,400 slot machines and 150 table games.

Mohegan Sun & Foxwoods Resort – The Mashantucket Pequot Tribe Built Their Own Casinos

Mohegan Sun and Foxwoods Resort did not emerge as Mafia-controlled gaming venues but were preceded by illegal operations that bore some similarities.

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The story begins in the 1970s with Philip Russell, a Mohegan Indian and Army veteran who opened a roadside bingo hall. With the tribal council’s blessing, Russell expanded his business, setting up high-stakes bingo games that attracted thousands of players from Connecticut and other states.

The bingo parlors thrived despite several raids by local and state police. Authorities accused the tribe of breaking bingo and gambling laws but never had enough evidence to bring criminal charges.

Then, in 1983, the US Department of the Interior acknowledged the Moshuan Pequot Federation as a sovereign nation, thus putting its 1,600 acres of land in trust. The move meant the tribal government had exclusive authority over the reserved territory.

Encouraged by the federal acknowledgment, the Moshuans decided to enter the casino business. They launched a $65 million project called Foxwoods, which transformed an old horse track into a resort with a 514-seat bingo room.

Another tribe, the Mohegan, followed Foxwoods’ footsteps and embarked on a similar venture. The $650 million Mohegan Sun turned out to be the world’s largest dome structure, surpassing the Miami Herald Stadium and the Salt Palm in Dubai.

Today, Foxwoods and Mohegan Sun are thriving resorts that coexist peacefully. Foxwoods has 5,500 slot machines, 350 table games, a poker room, and high-stakes bingo. Mohegan Sun also offers slots, table games, and poker alongside unique attractions like a concert venue, a ballroom, and a buzzsaw rollercoaster.

Both resorts are members of the Consolidated Tribal Government of the Mashantucket Pequot Tribal Nation.

Final Thoughts

The Mob’s Adventures in Building Casinos outside Vegas was a lucrative business but also a risky one. While some mafia-affiliated resorts thrived, others struggled to stay afloat before closing down entirely.

Many of the surviving casinos changed their names and ownership structures to wash off the mob stigma. Some maintained their original monikers but cut ties with their shady past.

Today, these casinos operate legally, paying taxes and following strict regulations. And although their histories are stained with organized crime associations, they remain popular destinations for gamblers and history buffs alike.

Kevin Roberts, previously published under the pseudonym Noah Davis, is one of the more diverse writers at Like many of his colleagues, he's a huge sports fan, but he also writes about politics, television, and even some other topics.

When it comes to sports, Kevin likes to write about just about everything as well. You can find his work in our NFL, NBA, NHL, and MLB sections, as well as our sections devoted to golf, box office, and betting picks.

A native of Washington, D.C., Kevin lived in the same city alone for over a decade, and in that time, he couldn't help but develop a strong interest in the Washington teams, as well as teams from nearby colleges.

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On weekends, you'll probably find him rooting for his Washington Football Team or his Baltimore Orioles. Otherwise, you can probably find him writing about these teams, as well, here at