Binion had a brother, Jack, and three sisters: Becky, Brenda, and Barbara.
In 1964, Benny Binion regained full control of the Horseshoe after previously selling his interest to cover his legal costs defending himself from tax evasion and other charges. Since he was a convicted criminal, Benny was no longer allowed to hold a gaming license. His sons Jack and Ted took over the day-to-day operation of the casino. Jack filled the role of president, while Ted became the casino manager. In that role, Ted was the face that was most seen during the peak evening hours of the casino operation and became well known as the host of the Horseshoe's poker tournaments. Binion loved living the high life and partying, schmoozing with high-profile guests of the Horseshoe, and flirting with attractive women.
While growing up, Ted spent summers at the family's Montana retreat, a cattle ranch in Jordan, to work with the ranch hands. Later, in the 1970s, Benny sent his three grandsons -- his daughter Barbara’s sons -- to Montana to run the ranch. By the 1980s, Benny had amassed an ranch, according to the county recorder’s office. The last parcel he purchased was in 1985. The family sold all the parcels in April 1998 to John Hillenbrand.
Ted was an avid reader and read magazines and books. He was a history buff, particularly American Civil War history, and enjoyed both reading and watching History Channel and Discovery Channel programming. In addition, he was mathematically gifted - easily able to mentally calculate odds or the "house take" in gambling transactions with no aid. He was known to help people he knew to be in difficult financial straits.
Binion was once the target of a near-kidnapping, a dramatic attempt that left bodies strewn across the desert. Later in life, he developed a severe heroin and marijuana problem. The dealers knew when he was around due to the telltale odor of marijuana smoke whenever he used the eye in the sky to keep an eye on the action.
He was arrested in 1986 on drug trafficking charges and began drawing attention for his connection to organized crime figure "Fat Herbie" Blitzstein. From that point on, Binion was in hot water with the Nevada Gaming Commission.
Besides his drug problems and association with mob figures, the Gaming Control Board suspected that he was using his live-in girlfriend, Sandy Murphy, as a bagwoman. Binion had met Murphy while she was working at Cheetah's, a topless club. His dalliances with her had caused his estranged wife and daughter to pack up and leave for Texas.
In 1996, he was provisionally banned from participating in the management of, or even entering, his family's casino. He struggled to avoid falling afoul of Commission drug tests, and at one point shaved off every hair on his body to avoid a hair test that would reveal his history of usage. In 1998, Binion's gaming license was permanently revoked, and he was never to be associated with the family business again. Inside the basement of the casino was Ted's silver collection, housed in a floor-to-ceiling vault at the Horseshoe Club. When Ted’s ties to the family casino were severed, he had to either sell the silver or relocate it to a secure spot.
After Binion lost his license and the family sold the Montana ranch, he became even more involved in drugs, especially marijuana, Xanax, and the street drug tar heroin. When he took heroin, he "chased the dragon" (inhaled the smoke).
After Ted Binion was banned from the casino, he contracted construction of the underground vault with MRT Transport, a trucking company owned by Rick Tabish. MRT trucks were used to transport the silver to the vault, and the only two people who had the combination to the vault were Binion and Tabish.
The vault was discovered two days after Binion died, whereupon Nye County sheriff's deputies arrested Binion's associate Rick Tabish and two other men unearthing the silver.
Binion's death was initially treated as a probable suicide. His live-in girlfriend, Sandy Murphy, said that Binion had been suicidal ever since losing his gaming license a few months earlier. His sister Barbara, afflicted with the same kinds of drug problems as her brother, committed suicide in 1977, which also helped contribute to the perception that Ted could have been vulnerable to suicide as well. However, his sister Becky discounted any talk of suicide, saying that in her conversations with him that he didn't sound despondent.
Las Vegas homicide detectives suspected that the scene had been staged, as his body didn't show the typical signs of a drug overdose. However, despite the urgings of Becky Behnen and Jack Binion, they refused to open a full-scale homicide investigation. Later, chief medical examiner Lary Simms ruled Binion had died of a heroin and Xanax overdose. After six months, however, the coroner's office reclassified Ted's death a homicide on May 5, 1999. Although there were no specifics, law enforcement sources cited evidence that the death scene had been staged, as well as witness statements implicating Murphy and Tabish. Detectives had suspected for some time that Murphy and Tabish had been romantically involved, and had learned that Binion suspected Murphy was cheating on him.
In June 1999, Sandy Murphy and Rick Tabish were arrested for Binion's murder, as well as for conspiracy, robbery, grand larceny and burglary. The prosecution's case stated that Murphy and Tabish had conspired to kill Binion and steal his riches, drugging Binion into unconsciousness and burking him, a form of manual suffocation. They were each charged with murder and burglary charges connected to the removal of his fortune from the vault on the desert floor in Pahrump.
The case attracted national media attention. After two months of trial, Murphy and Tabish were found guilty, after nearly 68 hours of deliberation. Tabish was sentenced to 25 years to life in prison, while Murphy received 22 years to life.
Later that year, David Roger, who prosecuted the case, was elected Clark County district attorney and David Wall, who second-chaired the prosecution, was elected district judge.
However, in July 2003, the Nevada Supreme Court overturned the murder convictions, ruling that Clark County District Court Judge Joseph Bonaventure erred in deliberation instructions to the jury. The justices found that Tabish should have received a separate trial for the assault and blackmail of another businessman. While the prosecution was never able to prove a link between this crime and Binion's murder, the justices said, testimony regarding the separate assault prejudiced the jury against Tabish. The justices also ruled that jurors should have been told to consider statements by Binion's estate attorney as statements of the attorney's mind, not fact.
The defendants were granted a new trial, which began on October 11, 2004 in Judge Bonaventure's courtroom. This time, Murphy, who was represented by Michael Cristolli, and Tabish, represented by famed civil rights lawyer J. Tony Serra, were each acquitted of murder but were convicted on lesser charges of conspiracy to commit burglary, burglary and grand larceny related to the Binion case. Murphy was not returned to prison, because of time served. Tabish is expected to come up for parole in 2009 and if granted parole then he will roll over to a 12 to 60 month conviction and if paroled from that he will roll over to another 12 to 60 month sentence.
A prosecution death theory, which the jury ultimately rejected, formed the basis for "Burked", a September 27, 2001 episode of the TV series CSI. After the jury in the re-trial found Tabish and Murphy not guilty of murder, news accounts reported that jurors had been unwilling to find them guilty because the forensic evidence introduced by the prosecution had not met the standards of the television show.
The case will be covered in a TV movie due to be released in late October 2008 called "Sex & Lies in Sin City". It is the intent of the makers to stick closely to the facts of the case. All the principal characters will be given their real names. Actor Matthew Modine is set to star as Ted Binion.