Leroy's Horse & Sports Place

In 1978, businessman Leroy Merillat bought a sportsbook in a strip mall in Downtown Las Vegas, and named it “Leroy’s” after himself.[1][2] The following year, Nevada gaming regulators found Merillat unsuitable for licensing because of questions about the propriety of a land deal in California, and he was forced to sell the business.[3][4] Merillat sold the operation to his son-in-law, Vic Salerno, in 1979.[1][5]

Nevada sportsbooks at the time were predominantly independent operations, rarely found in casinos.[6][7] Around 1983, the popularity of sportsbooks began to boom and they started to become more common in casinos.[6][7] Salerno developed one of the first computerized sportsbook management systems to make his operation more efficient and able to compete with the large casinos.[8]

In 1984, Salerno and two partners formed CBS Computer Systems to market their system to other sportsbook operators.[1] The company, which shared the building with Leroy's, was soon providing systems to almost all of Las Vegas's bookmakers.[8] They sold CBS in 1989 to United Tote for $3.5 million.[9][10]

In June 1989, Nevada law was changed to allow outside operators for casino sportsbooks, and Leroy's quickly took advantage of the new law by beginning to open branches in casinos.[8][11][12] By 1992, Leroy's was the only independent sportsbook in the state, and had branches operating in 30 casinos.[13]

Leroy's was placed under a holding company, American Wagering, Inc. (AWI), and made its initial public offering in May 1996.[14][15] Leroy's had 35 locations at the time.[16] The funds raised in the IPO were used to complete the purchase of a 150-room Howard Johnson's hotel and casino near the Las Vegas Strip, which the company planned to remodel as a sports-themed resort.[17]

In October 1996, AWI bought CBS back from Autotote Corp. for $3 million, and renamed it as Computerized Bookmaking Systems.[18][19]

AWI agreed in April 1997 to buy Imagineering Systems, a maker of keno systems, for $3 million,[20] but canceled the deal in September 1997, deciding instead to build a progressive keno system in-house.[21] Imagineering sued AWI for breach of contract, and was eventually awarded $1.2 million.[22] Meanwhile, AWI launched The Game, a keno offering with progressive jackpots linked to multiple casinos, in August 1999.[23] The company closed its keno operations in 2002.[24]

In July 1997, AWI and International Game Technology jointly launched MegaSports, a parimutuel sports betting system offering high-value progressive jackpots to bettors at Leroy's and other Nevada sportbooks.[25][26] The company shut down the project in 2000.[27]

AWI, through an Australian subsidiary, launched an online site offering race and sports betting under the MegaSports name in 1999.[28] The site accepted wagers worldwide, except from bettors located in the United States.[28] It was believed to the first online gambling venture by a company licensed in Nevada.[29] Trouble arose, however, later that year, when the Nevada Gaming Commission accused MegaSports of accepting bets from an agent located in Las Vegas who went through a Canadian Internet provider.[30] AWI was ultimately forced to sell the site, or risk losing its Nevada gaming license.[31] MegaSports was sold in July 2002 to Eurast Ltd. of Perth for $2.8 million.[31]

The Howard Johnson's hotel was sold in July 1999 for $4.3 million.[32]

Michael Racusin, a financial consultant who assisted with the IPO, filed a lawsuit claiming he was not paid his full fee.[33] After a court awarded him $1.3 million in July 2003, American Wagering was forced to file for Chapter 11 bankruptcy protection.[33] Youbet.com attempted to buy the company out of bankruptcy for $9.5 million,[34] but eventually withdrew its offer.[35] The company emerged from bankruptcy in March 2005, with most debts having been paid in full, and shareholders retaining their equity in the company.[36][37]

The company acquired Sturgeon's Inn & Casino in Lovelock, Nevada in March 2006 for $1.8 million.[38][39]

In 2007, Leroy's began opening sports betting kiosks at its casino locations, allowing patrons with established accounts to place bets at all hours of the day.[40] The following year, the kiosks began being installed in bars and taverns as well.[40]

The company began releasing mobile betting applications for smartphones in 2010,[41] which proved popular.[42]

In June 2012, British bookmaker William Hill bought American Wagering for $18 million, along with Lucky's Race & Sports Book and the satellite sportsbook operations of Club Cal Neva.[42][43] Salerno was named chairman of William Hill U.S., overseeing 55 percent of the state's sportsbook locations, all of which were rebranded under the William Hill name.[44]