PDF Summary:The Gambler, by William C. Rempel

From humble beginnings to extraordinary wealth, The Gambler by William C. Rempel chronicles Kirk Kerkorian's remarkable rise to prominence in the corporate world. Over decades, Kerkorian transformed industries like aviation, hospitality, and film—building his fortune through an innate entrepreneurial spirit, tenacious commitment to hard work, and a talent for recognizing undervalued assets.

The biography provides an intimate glimpse into Kerkorian's life. We learn of his hardscrabble youth, early experiences in business ventures, and significant deals that culminated in Las Vegas becoming a global entertainment capital and the revitalization of Hollywood studio MGM. The book also sheds light on Kerkorian's personal life and philanthropic endeavors benefitting his Armenian heritage.

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Kerkorian gained majority ownership of Western Air Lines.

Rempel highlights the instability of the airline industry, emphasizing its dependence on obtaining governmental authorization for its flight paths, even though the company initially experienced a period of success. In 1968, Kerkorian's lasting enthusiasm for flying prompted him to acquire a controlling stake in Western Air Lines after he sold TIA to the Studebaker Corporation. The CEO of Western, Terrell Drinkwater, vigorously opposed Kerkorian's influential strategic maneuvers.

Rempel emphasizes the character clash, pointing out that Kerkorian, who preferred to maintain the existing leadership of Western, was portrayed by Drinkwater as a forceful outsider. This clash highlighted Kerkorian's resolve, illustrating his willingness to confront challenges head-on and his unwavering commitment to achieving the best outcomes for the business, regardless of potential conflicts with current leadership.

He exerted control and maintained ownership interests in various airline operations.

Kerkorian's enthusiasm for aviation and his skill in managing business transactions led him to make investments in and influence the trajectory of various airlines throughout his career. Rempel emphasizes Kerkorian's ability to anticipate industry trends and his adeptness at establishing partnerships, including with rival companies. He anticipated the significant increase in leisure and business air travel that marked the shift from the 20th to the 21st century.

Ventures in the hospitality sector, including gaming operations.

Kerkorian's frequent visits to Las Vegas in the 1960s, coupled with his awareness of the city's swift growth, spurred him to start investing in the local real estate market, eventually leading to his first foray into the hospitality and gaming industries. Rempel describes the approach Kerkorian took in purchasing property, his meticulous attention to detail, and his willingness to collaborate with experienced experts, which all played a role in developing some of the most iconic and successful venues in the heart of the gambling world.

He assumed leadership and oversaw operations at a number of esteemed Las Vegas venues known for their hospitality and gaming.

In the early 1960s, Kerkorian began his venture into the hospitality and gaming sectors of Las Vegas by purchasing land that would eventually become the location for Caesars Palace. His acquisition of the struggling Flamingo Hotel in 1967 signified the start of his significant efforts to transform the city's gambling landscape.

Rempel emphasizes Kerkorian's commitment to dismantling the deep-rooted influence of criminal organizations within the gambling hubs of Las Vegas. Kerkorian enhanced the Flamingo's success by recruiting seasoned managers known for their integrity, including Alex Shoofey, which resulted in profits tripling and signified a shift toward corporate-run industry dominance.

He founded the globally acknowledged largest hotel of its era, known as the International Hotel in Las Vegas.

His audacious vision was realized when the International Hotel welcomed its first guests in 1969. The vast 1,500-room establishment, situated adjacent to the Strip and erected through a $60 million investment that defied skeptics and revolutionized the norms of hotel construction in Las Vegas, stood as a monumental tribute to the enduring impact made by Kirk Kerkorian. Rempel emphasizes the project's immense scope, which garnered global interest, and its dependence on Kerkorian's thorough strategizing, coupled with his unwavering quest for funding, frequently facing significant opposition from various established and non-traditional financial institutions.

His competitive drive sparked a silent contest with Howard Hughes, the renowned pilot and magnate, who had initiated a series of acquisitions in Las Vegas. Hughes saw Kerkorian's grand hotel venture as a threat to his status and used his power behind the scenes to create economic and legal obstacles that would hinder its advancement. However, Kerkorian persevered, pushing ahead with construction and securing the necessary funding through a combination of personal resources, shrewd bargaining, and a successful stock offering.

The company expanded its commercial interests to include industries associated with leisure and wagering pursuits.

Kerkorian played a pivotal role in diversifying his investments by initiating the establishment of the first MGM Grand Hotels in both Las Vegas and Reno, which expanded his interests into the realms of entertainment and gaming. The writer highlights the pivotal role played by Kerkorian in transforming Las Vegas into an internationally acclaimed center for entertainment and gambling.

Transforming the movie industry.

Kerkorian embarked on his first foray into the movie industry by attempting to purchase the esteemed film company MGM. He ventured into a bold challenge, pitting his skills against the entrenched hierarchy of the film industry and the influential Bronfman family.

Acquired a controlling interest in the financially troubled MGM Studios.

Rempel narrates how Kerkorian employed forceful legal tactics to take control of MGM, a move that faced resistance from the Bronfman family until they yielded after an extended and expensive fight. Kerkorian utilized a sophisticated and diverse strategy to take ownership of MGM. He understood the iconic status of the studio and the vast potential offered by its array of cinematic gems, including eternal classics like Gone with the Wind, The Wizard of Oz, and Singin' in the Rain. Kerkorian perceived the latent value in movie archives at a time when their significance was not broadly acknowledged.

The revamped MGM concentrated on the extensive collection of its cinematic works.

Kerkorian set out to rejuvenate the faltering studio by modernizing its processes, enhancing efficiency, and divesting itself of any assets not essential to its core business functions. The decision to auction off a large assortment of studio memorabilia, such as props and costumes, attracted negative attention, particularly from the esteemed actress Debbie Reynolds.

He chose James T. Aubrey, known for his moniker "the Smiling Cobra," to take the helm at MGM. Aubrey's daring approach to cutting costs and challenging conventional practices in the industry, though effective in reestablishing MGM's financial footing, made him widely regarded as the least liked individual in Hollywood.

He engaged in multiple transactions involving MGM, securing earnings from every one of them.

Over many years, Rempel documents the strategy Kerkorian employed to repeatedly sell and subsequently repurchase MGM, capitalizing on market fluctuations and leveraging the company's assets to generate substantial profits. His most lucrative sale came in 1986 when he sold MGM/UA to Ted Turner for $1.5 billion. He capitalized on Turner's economic challenges a year later and repurchased the studio at a reduced rate compared to his original selling price.

Other Perspectives

• While Kerkorian's investments in various sectors were significant, it's important to consider the broader economic and social impacts of such concentrated ownership and control, which can lead to reduced competition and potential monopolistic practices.
• Directing capital towards the aviation industry can be seen as beneficial for economic growth and innovation, but it also raises concerns about environmental impacts, given the aviation industry's significant carbon footprint.
• The control Kerkorian had over Trans International Airlines and other airline operations could be critiqued for potentially stifling innovation and competition if his business practices were overly aggressive or if he had too much market power.
• Kerkorian's acquisition of Western Air Lines and his approach to business may have been seen as aggressive and could be criticized for potentially undermining existing company culture and leadership.
• The focus on Las Vegas venues and the gaming industry, while profitable, can be critiqued from a social perspective, considering the potential for fostering gambling addiction and other related social issues.
• The founding of the International Hotel in Las Vegas, while a significant achievement, could be critiqued for contributing to the city's water scarcity issues and for the environmental impact of such large-scale construction projects.
• Kerkorian's involvement in the movie industry and the subsequent focus on MGM's cinematic works could be seen as prioritizing commercial interests over artistic integrity, especially when considering the sale of studio memorabilia and the controversial leadership style of James T. Aubrey.
• The repeated buying and selling of MGM could be criticized as a form of asset stripping, which may not always be in the best interest of the company's long-term health, employees, or the film industry as a whole.

Kerkorian's private matters, social relationships, and charitable activities.

Rempel sheds light on the lesser-known facets of Kerkorian's life, emphasizing his tendency to avoid the limelight, his strong relationships with family and friends, and his substantial philanthropic donations.

Personal relationships

Kerkorian conducted his business dealings actively but always kept his personal life under wraps. Rempel illuminates Kerkorian's three marriages, highlighting his steadfast commitment to Una Davis and his profound affection for his children, thereby emphasizing the importance of family connections and loyalty in his life.

His spouses included Hilda Schmidt, Jean Maree Hardy, and Lisa Bonder.

Kerkorian married Hilda Schmidt, whom he had met during his pilot training, in 1942. Their union dissolved in 1951, having endured for a duration of nine years. In 1954, he wed Jean Maree Hardy, a dancer whom he met while in Las Vegas. They were blessed with a nearly three-decade-long marriage, throughout which they experienced the happiness of raising two daughters named Tracy and Linda.

Kerkorian's brief 1999 union with Lisa Bonder, an ex-tennis pro, spanned a mere thirty days and aimed to affirm his fatherhood of Kira Rose, whom he at first believed to be his biological child.

As time went on, she was the one who proposed that they should unite in matrimony.

Kerkorian's life was graced by the presence of Una Davis, who shared his passion for tennis and became a valued friend and trusted advisor over many years. Their bond endured through various highs and lows for more than ten years, culminating in Kerkorian's proposal of marriage in 2013. Rempel highlights the challenges stemming from their age difference and Una's intense pursuit of independence, as Kirk's strong preference for privacy initially hindered their efforts to establish a strong relationship. The wedding, initially set for November, was delayed due to discussions regarding the prenuptial agreement. Kirk's impatience led him to insist on a wedding in March 2014 alongside Una. The union, unfortunately, dissolved before a full month had passed.

A contentious legal dispute arose concerning whether he was the biological father of Kira, his daughter with Lisa Bonder.

Lisa Bonder's assertion that Kirk Kerkorian fathered Kira Rose sparked a heated legal battle over the child's parentage and financial maintenance, highlighting the complexities of Kerkorian's personal life. Initially, Kerkorian believed Kira to be his biological daughter and therefore he provided her with generous monetary support. Speculation that the high-living Hollywood notable Steve Bing could also be a paternal candidate prompted Kerkorian to covertly initiate DNA testing, which verified that Kira was not his biological child.

The revelation of this information set off a series of legal battles, during which Kerkorian's attorneys depicted Bonder as someone who engaged in deceit, pressure tactics, and manipulation, ultimately tarnishing her reputation.

He engaged in charitable endeavors.

Kerkorian's charitable activities were characterized by extraordinary generosity and a preference for maintaining a low profile. He established a philanthropic entity recognized for its dedication to confidential donations and a strategic, methodical method of charitable giving.

He established the Lincy Foundation, which is committed to advancing initiatives that improve the well-being of Armenians.

In the wake of allegations that he had neglected Armenia's suffering following the catastrophic 1988 earthquake, Kerkorian set up a charitable organization, which he named the Lincy Foundation in tribute to his daughters. Lincy was the primary channel for Kerkorian's charitable activities, which were bolstered by a fund that surpassed one hundred million dollars. Rempel underscores that the establishment of the foundation aimed to bolster Armenian efforts and ensure the strategic allocation of his philanthropic contributions.

He donated a sum exceeding one billion dollars to assist those affected by earthquakes and to bolster a range of charitable endeavors.

Kerkorian's philanthropic endeavors were largely facilitated by the Lincy Foundation, which distributed more than one billion dollars over its lifetime. A significant portion of the money was used to lessen the effects of the earthquake by offering steady assistance and aiding in the restoration of critical infrastructure and services.

He made the majority of his charitable donations anonymously.

Kerkorian consistently supported numerous charitable endeavors, often contributing anonymously to avoid public attention. He believed that the value of charitable donations diminished when acknowledged in public. Rempel recounts tales that illustrate the person's preference for discretion and his subtle approach to wielding influence, emphasizing the humility that often characterized his philanthropic efforts.

Legacy and impact

The biography by Rempel concludes by honoring the enduring impact of a philanthropic trailblazer and audacious individual who transformed the modern entertainment landscape and left a permanent imprint on the cinematic world as well as the renowned city of Las Vegas.

He transformed Las Vegas into a global leisure and gambling destination

Rempel gives credit to Kerkorian for his crucial role in turning Las Vegas into a world-renowned hub for entertainment and gambling. He emphasizes the tendency of Kerkorian to envision projects of immense scale, demonstrated by his involvement in the creation of three properties that were, during their time, among the largest hotels globally, defying conventional standards and setting new precedents for luxury and entertainment.

He revolutionized the movie business through his significant impact on MGM's prosperity.

Kerkorian's groundbreaking approach to business and his defiance of traditional industry norms, which originated during his leadership period at MGM, set the stage for an era where the value of film archives and intellectual property gained broad acknowledgment. He recognized that owning an extensive library of classic movies would open up substantial financial prospects, a strategy subsequently adopted by other studios, thus solidifying his impact within the movie industry.

He rose from modest origins to join the ranks of the wealthiest individuals in America.

Rempel emphasizes Kerkorian's rise from modest beginnings and limited formal education to become one of the most affluent people in the United States. He became the epitome of the American dream through his notable accomplishments and philanthropic efforts, highlighting its enduring appeal.

Context

• Kirk Kerkorian was married three times: first to Hilda Schmidt, then to Jean Maree Hardy, and finally to Lisa Bonder. His relationships were marked by significant events, such as his enduring marriage to Jean Maree Hardy and the brief union with Lisa Bonder, which led to a legal dispute over paternity. Additionally, his close bond with Una Davis, a friend and advisor, played a significant role in his personal life, despite their challenges. Kerkorian's personal relationships were complex and intertwined with his public image as a successful businessman and philanthropist.
• Kirk Kerkorian faced a legal battle over the paternity of his daughter, Kira Rose, with Lisa Bonder. Initially believing Kira was his biological child, Kerkorian provided financial support until DNA testing revealed otherwise. This revelation led to a contentious legal dispute over parental responsibilities and financial matters. The situation highlighted complexities in Kerkorian's personal life and the challenges that arose from the conflicting claims regarding Kira's paternity.
• The Lincy Foundation was established by Kirk Kerkorian to support charitable initiatives, particularly focusing on aiding Armenians. It was named after his daughters and became a significant channel for his philanthropic activities, managing a fund exceeding one hundred million dollars. The foundation played a crucial role in distributing over one billion dollars to assist those affected by earthquakes and support various charitable causes. Kerkorian preferred to make most of his donations anonymously to maintain a low profile in his charitable endeavors.
• Kerkorian transformed Las Vegas by envisioning and developing large-scale hotel projects that set new standards for luxury and entertainment, making the city a global entertainment and gambling destination. In the movie business, Kerkorian's strategic focus on acquiring film archives and intellectual property at MGM paved the way for recognizing the financial value of such assets, influencing industry practices and solidifying his impact on the movie industry.