The Meadows later became a house of prostitution, operated by Eddie Clippinger. Then, in 1935, the property was sold to Dave Stearns, Sam Stearns and Larry Potter. The casino was leased in 1932 to Guido Marchetti, Frank Miller and Earl West. Because it was outside the Las Vegas city limits, the Las Vegas city fire department refused to fight the fire.

In September 1931, a fire broke out at the hotel. Cornero sold the hotel in July 1931 to Alex Richmond. However, because of a bootlegging conviction, the casino was licensed in the names of his brothers, Frank and Louis Stralla. The Meadows was owned by Anthony Cornero (aka Tony Cornero or Anthony Stralla), who was a major bootlegger during Prohibition, operating out of Los Angeles. Balzar signed into law Assembly Bill 98, which legalized gambling, and the Meadows was one of the first casinos to open after legalization.

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