In this episode of Stuff You Should Know, hosts Chuck Bryant and Josh Clark explore the 1980 bombing of Harvey's Casino in Lake Tahoe, Nevada. The episode details how an elaborate bomb disguised as IBM equipment, containing roughly a thousand pounds of stolen dynamite, led to a $3 million ransom demand and ultimately resulted in a massive explosion that left a 40-50 foot hole in the casino floor.
The hosts trace Harvey Gross's role in developing Lake Tahoe as a gambling destination, and examine the FBI investigation that followed the bombing. The investigation revealed John Burgess Sr., a gambling addict who had lost $750,000 at the casino, as the mastermind behind the plot. While Burgess Sr. claimed the bombing was part of a larger insurance fraud scheme, the FBI's evidence pointed to a straightforward extortion attempt.

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On August 26, 1980, an elaborate bomb disguised as IBM equipment was delivered to Harvey's Casino in Lake Tahoe, Nevada. The extortionists demanded a $3 million ransom and warned against tampering with the device. The sophisticated bomb, containing roughly a thousand pounds of stolen dynamite, was equipped with multiple anti-disarmament mechanisms. Despite evacuation efforts and FBI intervention, an attempt to disarm the bomb 35 hours later resulted in a massive explosion, creating a 40-50 foot hole in the casino floor.
Harvey Gross transformed Lake Tahoe into a gambling destination, starting with a small cabin and six slot machines before expanding to Harvey's Lake Tahoe – the area's tallest building by 1963. According to hosts Chuck Bryant and Josh Clark, while Gross faced some legal troubles with the IRS and gaming board, he was generally regarded as a legitimate businessman content with his single location. During the 1970s and early 1980s, Lake Tahoe casinos became attractive targets for criminal schemes, including smoke bomb threats and ransom demands.
The FBI investigation identified John Burgess Sr., a Nazi sympathizer and gambling addict, as the mastermind behind the bombing. After losing $750,000 at Harvey's Casino and being demoted from the high-roller suite, Burgess Sr. recruited his sons and others to execute the bombing plot. Though he claimed the bombing was part of a larger insurance fraud scheme involving loan sharks and casino executives, the FBI found no evidence to support this theory. Burgess Sr. was ultimately sentenced to 20 years in federal prison and life without parole in state prison, with his sons receiving reduced sentences for testifying against him.
1-Page Summary
On August 26, 1980, Harvey's Casino in Lake Tahoe, Nevada, found itself at the center of an extortion plot when two individuals delivered equipment disguised with an IBM cover, later revealed to be a bomb. Accompanied by a note, the extortionists warned against moving or tilting the bomb and demanded a $3 million ransom. Instructions directed authorities to locate a beacon for the money drop, but the agents could not find it.
The bomb, stolen from a power plant in California, was laced with dynamite and contained sophisticated anti-disarmament mechanisms including a float switch, an atmosphere pressure switch, and triggers attached to screws. Any attempt to disarm or manipulate the bomb risked detonation. The FBI found the bomb had roughly a thousand pounds of dynamite, presenting a challenge to safely defuse it.
Guests at Harvey's Resort Hotel and nearby Harrah's casino were evacuated without a chance to collect belongings, and the media quickly became involved, turning the situation into a spectacle.
An attempt to disarm the bomb took place 35 hours after the discovery. Despite recognizing the risks, the bomb squad proceeded with a special charge but was unable to defuse the device safely. The resulting explosion left a significant hole in the casino, scattering shrapnel, cash, and debris throughout the interior.
1980 Harvey's Casino Bombing Details and Aftermath
Lake Tahoe's transformation into a gambling and tourist hub is largely attributed to the vision and business acumen of Harvey Gross, despite his encounters with the law and challenges during an era rife with criminal activities targeting casinos.
Harvey Gross began his venture with Harvey's Wagon Wheel Saloon and Gambling Hall, which was initially a small cabin with six slot machines. However, Gross's ambitions quickly led to the expansion of his business, and by 1963 he unveiled Harvey's Lake Tahoe – an 11-story building that hailed as the tallest in the area at the time.
While Gross encountered legal issues, such as being hauled before the IRS for tax evasion, commentators Chuck Bryant and Josh Clark convey a positive image of Gross, characterizing him as a "good guy" and not a stereotypical mafioso figure. Despite his run-ins with the IRS and the gaming board, Gross was regarded as a man satisfied with his single location, with the mindset of a businessman content with his lot, showing no interest in unnecessary expansion.
The addition of gambling in Lake Tahoe had a substantial impact on the area's development. What was an area lacking basic services was rapidly transformed into a prominent tourist destination, thanks in large part to the gambling industry's influx. Gross's casino, strategically located on the California state line, capitalized on attracting visitors from out of state, contributing to the economic growth of the region.
Harvey Gross and Gambling History in Lake Tahoe
John Waldo Burgess Sr., identified as a Nazi sympathizer and gambling addict, was apprehended and investigated for his role in a bomb plot targeting Harvey's Casino.
The FBI's investigation zeroed in on John Burgess Sr. after he lost approximately $750,000 through gambling, predominantly at Harvey's Casino. The humiliation of being demoted from the high roller suite to a regular room on New Year's Eve fueled a vendetta against the casino. Burgess Sr. recruited his sons and associates to commit the bombing in an attempt to recover his losses and exact revenge on the establishment.
After a year of gathering evidence, John Burgess Sr. was arrested. His sons, John Jr. and Jimmy, were also taken into custody and later offered leniency in exchange for their testimony against their father. Representing himself in court, Burgess Sr. was sentenced to 20 years in federal prison and life without parole in state prison, ultimately dying after 16 years behind bars.
John Burgess Sr. claimed the bombing plot was orchestrated by a loan shark he owed money to, in collusion with top executives of Harvey's Casino and the mafia, as part of an insurance fraud scheme. However, the conspiracy theory lacked evidence, and the FBI determined the act to be a personal attack against Harvey's Casino rather than an indiscriminate act of terrorism. While the insurance funds were used to rebuild the casino, this fact did not substantiate the existence of a la ...
Arrest and Investigation of Bombing Mastermind John Burgess Sr. and Accomplices
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