The latter was opened by Sumner Laughton, who later changed the name to Lawton's Hot Springs, reflecting a common misspelling of his surname.
Developer George Benny planned to reopen the resort in the early 1980s and added an A-frame casino structure to the property.
In 2020, the River Inn was sold to businessman Lawrence McNutt, who planned to make it his personal residence.
[15][16] Lawton's Hot Springs was popular among celebrities, including boxers Max Baer and Jack Dempsey.
[23] The new Holiday Lodge opened in 1963, with 100 newly constructed motel rooms and a casino,[24][25][26] the latter eventually closing in September 1964.
[27] Security National Bank of Nevada sued the Holiday Lodge lessees in 1965, alleging it was owed $30,000 on a promissory note.
[28] Subsequent legal troubles emerged between the lessees and the Yori family, which regained control of the resort in March 1966.
[32] Mark Yori said, "We've done a lot of remodeling and fixing to put it back to where it once was as an attraction for Reno families as well as for the tourists".
[41] In 1977, a judge ruled that the River Inn was not liable for the death of an intoxicated woman who drowned in one of the hot spring pools two years earlier.
[42][43] During the 1970s, the resort was owned by a group of businessmen from Orange County, California,[44] through companies known as Civic Center Enterprises and later Leisure Time Development.
[45][46][47] In 1977, the River Inn defaulted on a loan from Valley Bank of Nevada, which attempted to foreclose the property.
At the time, gaming operations were handled by DGS, Inc., run by 1940s Boston Red Sox pitcher Emmett O'Neill.
[48] In January 1978, the Washoe County Commission ordered the River Inn to stop the spread of effluent water and spray from its sewer lagoons.
The wastewater had been flowing for years into Reno's main water source, the Truckee River, posing a potential health risk.
The revamped property would use a package sewer plant, although opponents argued that its leach fields would threaten their wells and the Truckee River.
He had been found guilty of mail fraud and racketeering after he schemed lenders out of $40 million to finance his real estate projects.
[58] California developer Jack Fleming offered to buy Benny's properties, including his leasehold interest in the River Inn.
[67][58] Fleming planned to bring back the Yori family as operators,[68] and they would also serve as financial partners.
[57][71] In 1988, he announced new plans to demolish the existing 83 motel rooms and build new lodging accommodations, although he would retain the A-frame casino structure.
[87] Shortly after taking ownership, McNutt advertised camping on the site to gauge the public's interest in such a feature, although the city sent him a cease and desist order, noting that he lacked a business license.
The resort's location along the Truckee River also presented strict city codes relating to amenities such as sewer.