How Gambling in Vegas Saved FedEx from Bankruptcy

FedEx is now a global shipping powerhouse, but few know how close it came to collapsing in its early days. One bold, almost unbelievable decision by its founder Fred Smith made the difference between shutting down and becoming a multi-billion dollar brand.

This is the true story of how a weekend blackjack run in Las Vegas saved FedEx.

The Situation: FedEx Was Almost Out of Fuel, Literally

In the early 1970s, FedEx was just starting out and burning through cash quickly. Here’s what things looked like:

• Only $5,000 left in the bank

• A looming $24,000 fuel bill due Monday

• No new investors in sight

• No plan B

It was the kind of crisis that would cripple any early-stage startup.

Fred Smith’s Wild, Desperate Move

Faced with no other options, FedEx founder Fred Smith didn’t go to a boardroom. He went to Las Vegas.

• Took the last $5,000 from the company account

• Flew to Vegas that weekend

• Sat at a blackjack table

• Walked away with $27,000

It wasn’t just luck. It was a bet on the survival of the company itself.

The Impact of That Weekend

That $27,000 wasn’t a long-term solution, but it did one crucial thing:

• Kept planes flying for another week

• Gave the team enough time to secure new funding

• Allowed FedEx to keep operations alive just long enough to pivot and scale

Soon after, investors came through, and the company took off, literally and financially.

Lessons from the FedEx Vegas Story

Fred Smith’s blackjack story isn’t about gambling. It’s about grit.

• Believe in your idea even when the odds are stacked against you

• Take bold action when you’re out of traditional options

• Sometimes, survival is the only priority

• Your next break might be one brave decision away

Today: A $60 Billion Company

From a desperate Vegas gamble to global dominance:

• FedEx is worth over $60B

• Operates in 220+ countries

• Ships millions of packages daily

And it nearly didn’t happen.