Luciano decided it would be best if Siegel went to the West Coast to escape his enemies and set up rackets in California. He met many Hollywood stars and studio owners. He met Jack Warner & Louis B. Mayer who he would contact later to get money from. He met Virginia Hill who was a money runner from the Chicago mob who blackmailed Hollywood Stars. Luciano & Lansky called him for elimination purposes.
When Siegel was in his mid 40's he used $5 million of syndicate money to establish the first casino and hotel. It was called "The Flamingo" in Las Vegas, Nevada. At the opening of the casino, it didn't make as much money as expected. Luciano demanded for Siegel to return the $5 million he had used. Siegel thought he was as big as Luciano, so he didn't do it. Luciano ordered to have Siegel killed. They think Lansky called Siegel to warn him and tell him to return the money, but Siegel refused. On June20, 1947 Siegel was shot three times in the head in Hill's living room. Hill and his other Hollywood friends did not attend his funeral.