local newspapers. (Goldwater lost Nevada by 28,000 votes.) Still, the Laxalt-Cannon race remained far closer than expected. As he watched the returns come in from his home in Carson City, Laxalt was stunned when one of the television networks actually declared him the winner. The next morning he flew to Las Vegas where he was told that certain precincts reported late and that Cannon had won by 48 votes, among the narrowest margins in a popular election for the U.S. Senate. The race was the subject of intense controversy for years. Governor Laxalt then decided to challenge two-term Governor Grant Sawyer. Although the election would not take place until November of 1966, Laxalt launched his campaign in the middle of 1965. One of the most hotly debated issues during the campaign was the federal government's involvement in Nevada gaming operations. The Federal Bureau of Investigation (FBI) and Justice Department had deep suspicions about organized crime's involvement in the gambling industry. Sawyer took the position that the federal government should stay out of Nevada's affairs. Laxalt took the position that Nevada had to cooperate with "the Feds" in order to be in a position to regulate gambling credibly. (In fact, one of Laxalt's first moves after his election was to meet with FBI Director J. Edgar Hoover to express Nevada's desire to establish a cooperative relationship.) During the gubernatorial campaign, Laxalt also led a movement to purge members of the John Birch Society from the state Republican Party. Sawyer was defeated by an unexpectedly wide margin (nearly 6,000 votes). Laxalt served one term as governor, from January 1967 to January 1971. Laxalt's tenure as governor was noteworthy for coinciding with the purchase of several hotel-casinos by reclusive billionaire Howard Hughes. Laxalt allowed Hughes to secure his gaming license without appearing before the state's gaming regulatory authorities because he thought having an internationally acclaimed businessman involved in Nevada gaming would send a positive signal about the legitimacy of the industry. Laxalt also supported corporate ownership of gaming operations in Nevada, which helped pave the way for modern-day gambling. With the financial support of Hughes, Laxalt helped establish the state's first community colleges and Nevada's first medical school. Along with Gov. Ronald Reagan of neighboring California, Laxalt helped create the Tahoe Regional Planning Agency, to protect scenic Lake Tahoe. He also expanded the park system and promoted prison reform in Nevada. On one