Cheating scandals downtown were rare but the Pioneer Club, under owner Margaret Elardi, was embroiled in one in 1968.

On Friday July 19, 1968, the Pioneer Club was closed by Nevada Gaming Commission agents who said the club removed face cards from a blackjack deck.

“The board called a shift boss, a dealer, owner Margaret Elardi and manager Wendell Tingley into its office for an investigative hearing last Thursday. (July 18, 1968) Then about noon Friday, Frank Johnson, control board chairman, said he told local enforcement agencies the casino would be closed by the state later that night — the first closure in recent Las Vegas history.”
{from Reno Gazette-Journal (Reno, Nevada) • Sat, Jul 20, 1968 • Page 10)

July 30, 1968 the Nevada Gaming Commission fined the club $1,000 and allowed it to re-open. Wendell Tingley had his gaming license revoked and he resigned. Mrs. Elardi denied any knowledge of the cheating.

“The owner, Mrs. Margaret I. Elardi, paid a $10,000 fine Tuesday and was allowed to reopen with slot machines only.
Frank Johnson, control board chairman, said Mrs. Elardi can get other games in the downtown casino either by selling the club or getting investors to join her in applying for a new state gambling license.”
{from Reno Gazette-Journal (Reno, Nevada) • Wed, Aug 7, 1968 • Page 37}