Arnold Rothstein, nicknamed "the Brain", was a Jewish-American racketeer, businessman and gambler who became a kingpin of the Jewish mob in New York City. Rothstein was widely reputed to have organized corruption in professional athletics, including conspiring to fix the 1919 World Series.
Background
Arnold Rothstein was born into a comfortable life in Manhattan, the son of a well-off Jewish businessman, Abraham Rothstein, and his wife, Esther. His father was a man of upright character who acquired the nickname "Abe the Just". Arnold was highly skilled at mathematics but was otherwise uninterested in school. His older brother, on the other hand, studied to become a rabbi.
Education
Rothstein was known to be a difficult child and harboured a deep jealousy over his older brother Harry. Rothstein's father believed that his son always craved to be the center of attention and would often get frustrated when he was not. His father pointed to an event in 1890 (when Rothstein was 8) to prove this. Rothstein's mother had gone to visit her mother across state, she took her eldest son Harry and her newborn daughter with her, leaving Rothstein. The night she left, Rothstein's father found him crying in the bottom of a closet, Rothstein reportedly said, "She hates me and you hate me, but you all love Harry. Nobody loves me."
While still a child, Rothstein began to indulge in gambling, but no matter how often his father scolded him for shooting dice, Rothstein would not stop. In 1921, Rothstein was asked how he became a gambler, "I always gambled. I can't remember when I didn't. Maybe I gambled just to show my father he couldn't tell me what to do, but I don't think so. I think I gambled because I loved the excitement. When I gambled, nothing else mattered."
Career
By 1910, Rothstein at age 28 had moved to the Tenderloin section of Manhattan, where he established an important gambling casino. He also invested in a horse racing track at Havre de Grace, Maryland, where he was reputed to have fixed many of the races that he won. Rothstein had a wide network of informants, very deep pockets from amongst his father's banking community, and the willingness to pay a premium for good information, regardless of the source. His successes made him a millionaire by age 30.
There is a great deal of evidence for and against Rothstein being involved in the 1919 World Series fix. In 1919, Rothstein's agents allegedly paid members of the Chicago White Sox to "throw", or deliberately lose, the World Series to the Cincinnati Reds. He bet against them and made a significant profit in what was called the "Black Sox Scandal".
In another version of the story, Rothstein was first approached by Joseph "Sport" Sullivan, a gambler, who suggested Rothstein help fix the World Series. Rothstein supposedly turned down Sullivan's proposal but when he received Attell's offer, Rothstein reconsidered Sullivan's first offer. He figured that the competition to fix the game made it worth the risk to get involved and still be able to cover his involvement. David Pietrusza's biography of Rothstein suggested that the gangster worked both ends of the fix with Sullivan and Attell. Michael Alexander concluded that Attell fixed the Series "probably without Arnold Rothstein's approval", which "did not prevent Rothstein from betting on the Series with inside knowledge".
Leo Katcher said that "all the records and minutes of the Grand Jury disappeared. So, too, did the signed confessions of Cicotte, Williams and Jackson.... The state, virtually all of its evidence gone, sought to get the players to repeat their confession on the stand. This they refused to do, citing the Fifth Amendment." Eventually, the judge had no choice but to dismiss the case. Katcher went on, "Thus, on the official record and on the basis of State Attorney Maclay Hoyne's statement, Rothstein was never involved in the fixing of the Series. Also, on the official record, it was never proved that the Series had been fixed." All eight White Sox players were forever banned from the game of baseball. Despite all his denials, though, Katcher notes that "while Rothstein won the Series, he won a small sum. He always maintained it was less than $100,000. It actually was about $350,000. It could have been much – very much – more. It wasn't because Rothstein chickened out. A World Series fix was too good to be true – even if it was true."
Under the pseudonym "Redstone Stable", Rothstein owned a racehorse named Sporting Blood, which won the 1921 Travers Stakes under suspicious circumstances. Rothstein allegedly conspired with a leading trainer, Sam Hildreth, to drive up the odds on Sporting Blood. Hildreth entered an outstanding three-year-old, Grey Lag, on the morning of the race, causing the odds on Sporting Blood, to rise to 3–1. Rothstein bet $150,000 through bookmakers, allegedly having been informed that the second favorite, Prudery, was off her feed. Just before post time and without explanation, Hildreth scratched Grey Lag from the starting list. Rothstein collected over $500,000 in bets plus the purse, but a conspiracy was never proven.
On November 4, 1928, Arnold Rothstein was shot and mortally wounded during a business meeting at Manhattan's Park Central Hotel at Seventh Avenue near 55th Street. He died on November 6 at the Stuyvesant Polyclinic Hospital in Manhattan. The shooting was reportedly linked to debts owed from a 3-day long, high-stakes poker game in October. Rothstein hit a cold streak and ended up owing $320,000 ($4.5 million in 2016 dollars). He claimed the game was fixed and refused to pay his debt. The hit was intended to punish Rothstein for failing to pay his debt. The gambler George "Hump" McManus was arrested for the murder, but later acquitted for lack of evidence.
According to Kevin Cook in the book Titanic Thompson (2010), the poker game was fixed by gambler Titanic Thompson (real name Alvin Clarence Thomas) and his associate, Nate Raymond. Due to some complicated side bets, by the end Rothstein owed $319,000 to Raymond (much of which Raymond was due, by secret agreement, to pass on to Thompson); $30,000 to Thompson; and approximately $200,000 to the other gamblers present. McManus owed Rothstein $51,000. Rothstein stalled for time, saying that he would not be able to pay until after the elections of November 1928, when he expected to win $550,000 for successfully backing Herbert Hoover for President and Franklin D. Roosevelt for Governor. Thompson testified at McManus's trial, describing him as "a swell loser" who would never have shot Rothstein. According to Cook, Thompson later told some of his acquaintances that the killer had not been McManus, but his "bag-man", Hyman Biller, who fled to Cuba shortly afterwards.
In his Kill the Dutchman! (1971), a biography of Dutch Schultz, the crime reporter Paul Sann suggests that Schultz murdered Rothstein. He says this was in retaliation for the murder of Schultz's friend and associate, Joey Noel, by Rothstein's protégé, Jack "Legs" Diamond.
On his deathbed, Rothstein refused to identify his killer, answering police inquiries with "You stick to your trade. I'll stick to mine", and "Me mudder (my mother) did it. Rothstein was buried at Ridgewood's Union Field Cemetery.