Gagliano was born in New Orleans, Louisiana. He became a member of the New Orleans LCN family under infamous crime boss Carlos Marcello. His son Joseph Gagliano also become a member of the New Orleans family during the 1990s. He was the owner of Frank's Deli in New Orleans. In 1990, Carollo became the new boss of the New Orleans family and made Gagliano his underboss. In 1995, Gagliano and four other mobsters pleaded guilty to charges of racketeering and conspiracy for skimming profits off Louisiana's video poker industry primarily through two company's that prosecutors said were mob fronts.