City Cast Madison logo

Uncovering the Ghosts of Madison’s Wonder Bar

Posted on August 20
Rob Thomas

Rob Thomas

A two-story brick building with boarded up windows and ivy growing up the side was the location of Wonder Bar Steakhouse. It now sits abandoned.

It may not be much to look at now, but in its heyday the Wonder Bar Steakhouse was a haven for mobsters and local luminaries. (Rob Thomas / City Cast Madison)

With its boarded-over windows, weed-choked grounds and cracked parking lot, the Wonder Bar Steakhouse at 222 E. Olin Avenue has certainly seen better days. No wonder that a developer wants to tear down the bar, which has been closed for five years, and the also-shuttered Coliseum Bar & Grill next door and build a project that includes housing, commercial space and a bike trail.

But some neighbors say that if the building is demolished, so will its colorful history. They want to see it preserved somehow for future generations.

That preservation plan had a big setback recently when the city’s Landmarks Commission recommended denying the building landmark status. However, the commission did say the site has historic value, which could add extra requirement permits to be secured before the building is demolished. [WMTV, WKOW]

Here’s a look at the Wonder Bar’s colorful history of mobsters and ghosts:

🔫 A Mobster’s Castle

The Wonder Bar was opened in 1929 by Roger “The Terrible” Touhy, an Irish-American mob boss in Chicago who was a rival of Al Capone. Some say Touhy was raking in over $1 million a year from bootlegging and gambling, and he opened the Wonder Bar as a place to launder his illicit gains out of state, and make more money smuggling booze into Wisconsin.

It was also an opportunity for Touhy’s bartender brother Eddie. The castle-like building was originally known as The Garden Lunch and then Eddie’s Wonder Bar, and its clientele supposedly included famous mobsters of the day, including John Dillinger and Baby Face Nelson. Although, as with so much surrounding the Wonder Bar, it’s hard to separate lore from reality. [ 🔒MJS, Cap Times]

🚨 Protection From the Law

The bar was often under surveillance by the FBI, and rumor has it that sections of the turret towers could be removed for mobsters to poke their tommyguns through in case of a raid. No shootouts were ever recorded.

There was also reportedly a tunnel that ran east towards Lake Monona that gangsters could use to smuggle booze and to escape if the “G-men” ever stormed the bar.

👻 Ghost Stories

Eddie “disappeared” sometime in the 1950s, and rumor has it that his body was buried under the fireplace on the second floor. Employees shared stories of hearing footsteps in the building in unoccupied areas, or finding objects moved from their original location. One manager said a friend of his went into the basement and felt like he was being choked. [American Ghost Walks]

🍸 A Shot of History

While the Wonder Bar’s mob ties were cut in the 1950s, its history made the bar a favorite of local luminaries, who ordered martinis and gathered around the bar’s roaring fireplace. It was especially popular among UW Badger fans, coaches and ex-players like Elroy “Crazylegs” Hirsch. The walls were decorated with remnants of its gangster past, including Frank Sinatra’s 1938 mug shot. [Cap Times, Madison Magazine]

⛔ End of an Era

The Wonder Bar closed in early 2021, a casualty of the COVID pandemic. Then-owner Dick Whelan was working with developers on building a $40 million, 18-story residential and commercial project. But those plans were put on hold by the Madison Plan Commission after a city preservation planner said the building had historic value. It’s sat unoccupied for the past five years, waiting for the last chapter in its story to be told. [WMTV]

The Madison City Council will take up the Landmarks Commission’s recommendation on Sept. 8.

Share article

Hey Madison

Sign up for your free daily toolkit to get the most of the city you love.

Can't subscribe? Turn off your ad blocker and try again.

Madison, Explained

See All
Madison, ExplainedSeptember 28

What To Know About The Proposed BECI Transmission Line

The 190-mile BECI high-voltage transmission line aims to secure Wisconsin’s grid, but locals and the Dane County Board are demanding dela...

Two large electric towers stand next to a white house.
Madison, ExplainedSeptember 22

Know the Constitutional Amendments On Your Fall Ballot

Wisconsin's Nov. 3 election features key governor and legislative races—plus three Republican-backed constitutional amendments. Learn wha...

Multiple red, white, and blue "I Voted" stickers are scattered on a white table.
Madison, ExplainedSeptember 21

Big Changes Planned For Madison’s Breese Stevens Field

As Breese Stevens enters its second century, its owners plan to increase the number of concerts and events. But some neighbors of the fie...

A band playing on an outdoor stage in front of an audience.
Madison, ExplainedSeptember 15

The House on the Rock Is Even Weirder Than You Think

Located about an hour west of Madison, The House on the Rock is one of Wisconsin's most infamous, and certainly oddest, tourist attractio...

People in a narrow room covered in glass.
Madison, ExplainedSeptember 15

How To Guard Against Ticks in Wisconsin This Fall

Tick season isn't over yet. Learn what to expect from fall tick activity in Dane County and get expert tips on how to protect yourself an...

A close-up photo of a small eight-legged insect on a human arm.
Madison, ExplainedAugust 31

How Voit Farm Will Transform Madison’s East Side

For 160 years, the 65-acre Voit Farm was a Madison fixture. Explore the ambitious new redevelopment plan bringing hundreds of homes, gree...

Two large blue buildings under construction.
Madison, ExplainedAugust 24

Test Your Madison News Knowledge!

This week's news quiz dives into everything from a new downtown restaurant to a big shake-up at UW-Madison. Can you get every question ri...

Francesca Hong and David Crowley stand on stages.
Madison, ExplainedAugust 18

Fitchburg Took Down Flock Cameras, But Will Test Others

Fitchburg ends its Flock Safety license plate reader contract over privacy concerns, testing alternatives from Axon and Motorola despite...

A city street on a winter's day with a Flock camera attached to a pole.

The latest in Madison

Food & DrinkSeptember 24

The Best New Restaurants in Madison

This month’s list of the area’s best new restaurants includes a new outpost for a wildly popular local pizza chain, a new sushi spot near...

People eating at booths in a restaurant with a glassed-in kitchen at the rear.
Madison's BestSeptember 23

‘Park People’ Will Satirize Madison’s Protest Culture

Madison filmmaker Corey Holl launches a crowdfunding campaign for his new political satire, "The Park People." Explore the proof-of-conce...

Two production staff members on the left hold equipment and a microphone for two actors sitting on a park bench being filmed.
Madison NewsSeptember 14

How the Historic Meta Settlement Will Impact Wisconsin

Get the details on Wisconsin’s $200M share of the historic $17B Meta settlement as Attorney General Josh Kaul joins City Cast Madison to...

Wisconsin Attorney General Josh Kaul stands at a podium
Food & DrinkSeptember 10

How the Essen Haus Has Avoided the Wrecking Ball...So Far

Celebrate Oktoberfest 2026 at Madison's iconic Essen Haus on Saturday, Sept. 12! Enjoy a full day of live indoor/outdoor music, German be...

The front of The Essen Haus - a grey building with gold trim. The restaurant sign is pink.
Madison NewsSeptember 9

How the U.S.-Canada Trade War Could Hurt Wisconsin Farmers

Canada has retaliated with $20 billion in tariffs against the U.S. following a breakdown in trade talks. Here is how these new trade barr...

a brown cow looks out through a holding pen.
Madison's BestSeptember 8

Ann Garvin Has a Surprise in Store For Her Readers

Madison author Ann Garvin shares her glee in throwing readers a curveball with her poignant, messy new novel, hitting stores September 8.

Author Ann Garvin poses in front of a red wall.
Food & DrinkSeptember 3

Where To Eat Halal in Madison

Madison’s first-ever Halal Restaurant Week runs Sept. 4-13. Discover local restaurants offering special menu options prepared in accordan...

A plate of meat and vegetables.
Madison's BestSeptember 1

What To Do in Madison in September 2026

Discover the best things to do in Madison, Wisconsin, in September 2026! From vibrant fall festivals to concerts and athletic events, pla...

A post for the theater show "Steady as She Goes" by Erica Berman. An illustration of a woman with blue flowing hair that looks like ocean waves.