FedEx Was Funded by a Las Vegas Blackjack Run

By late 1973, Federal Express had been flying for eight months and was hemorrhaging money. Fuel costs had spiked after the Arab oil embargo. The company's bank account held roughly $5,000 — not enough to cover a coming fuel bill that would ground the fleet. Fred Smith, who had founded FedEx with an $8 million inheritance and $80 million in loans and equity from investors, flew to Las Vegas with the remaining cash and played blackjack.

He came back with $27,000. It was enough to keep planes in the air for a few more days, which was enough time for his team to close another round of emergency financing. Smith confirmed the story in later interviews, describing the trip as a decision made out of options rather than optimism. "What the hell else could I do?" he told one interviewer.

FedEx lost money for its first three years of operation, burning through roughly $30 million before breaking even in 1976. The company went public in April 1978 at $3 a share. By 1983, annual revenues had crossed $1 billion, making FedEx one of the fastest companies in history to reach that threshold organically. The blackjack winnings were not the reason FedEx survived — additional investor capital was — but they were the bridge that kept the option open.