The casino was founded and half owned by Alfred Gronevelt, with the other half of the shares belonging to the Santadio crime family. After the Clericuzio family's victory in the Santadio war in 1964, Don Clericuzio sent Pippi De Lena to claim their shares, which he did, while also meeting his future wife, Nalene, then a showgirl. This began a successful alliance between the Clericuzio and Gronevelt.
After Gronevelt's death, his shares went to his protege, Cross De Lena. Cross ran the Xanadu for some time before being forced to give up his shares to the Clericuzio in 1997, as punishment for the murder of Dante Clericuzio.