Frank Costello - Years As Consigliere

Years As Consigliere

In 1931, after the Masseria and Maranzano murders, Luciano became the leader of the new Luciano crime family, with Genovese as underboss and Costello as consigliere. Costello quickly became one of the biggest earners for the Luciano family and began to carve his own niche in the underworld. Costello controlled the slot machine and bookmaking operations for the Luciano family with associate Philip "Dandy Phil" Kastel. Costello placed approximately 25,000 slot machines in the bars, restaurants, cafes, drug stores, gas stations, and bus stops throughout New York. However, in 1934, New York Mayor Fiorello La Guardia confiscated thousands of Costello's slot machines, loaded them on a barge, and dumped them into the river. Costello's next move was to accept Louisiana governor Huey Long's proposal to put slot machines throughout Louisiana for 10% of the take. Costello placed Kastel as the overseer of the Louisiana slot operation. Kastel had the assistance of New Orleans mafioso Carlos "Little Man" Marcello, who knew every place in New Orleans that could take one of Costello's "one-arm bandits". Costello brought in millions of dollars in profit from slot machines and bookmaking to the Luciano Family. In fact, Costello and Frank Erickson, the overseer of Costello's bookmaking operations, are credited with starting the layoff and odds systems used by bookies and gamblers all across North America.

In 1936, Luciano was convicted of running a prostitution ring and was sentenced to 30 to 50 years in state prison. Luciano attempted to rule the crime family from prison with the help of Costello and Lansky, but found it too difficult. Luciano finally named Genovese as his underboss. However, in 1937, Genovese was indicted for a 1934 murder and fled to Italy to avoid prosecution. Luciano then appointed Costello as acting boss.