Nevada Casinos - A Complete Guide to NV Gambling Venues

All forms of betting were made illegal in 1910 due to a decision made by the Nevada Legislature. This came as a result of an ever-growing temperance movement that would also lead to the eventual prohibition of alcohol that would start in 1920. Just like prohibition, however, this betting ban wasn’t to last.

If prohibition wasn’t enough, the 1920s also saw the birth of The Great Depression. This brought financial ruin to millions across the country and was a truly devastating event for businesses and individuals alike. As an attempt to rise out of the Great Depression, Humboldt County Assemblyman Phil Tobin spearheaded legalization with great success, passing through the senate vote 13 to 3 in favor.

The famous Hoover Dam began construction in 1931 and brought in a massive workforce. This workforce needed some entertainment, which is what arguably kickstarted the casino boom for legitimate and mafia-linked organized crime operators to set up shop. While the development boom didn’t reach its full potential until after World War 2, this was the beginning of what would make Las Vegas the largest city founded in the 20th century.

It wasn’t until 1945 that Nevada casinos started being taxed by the government. This tax was fixed at an incredibly low 1% of all gross gaming revenue that surpassed $3,000. Illegal and criminally funded venues began springing up throughout the state during the 1940s, partially thanks to these low taxes. Benjamin Seigel made the headlines in 1947 for being connected to organized crime and getting shot dead after his Flamingo Hotel Casino project went over budget by an estimated 5 million dollars.

While the state had finally started taxing casino operators, it did little else to keep a watch over the industry. There was no regulatory body, only a Tax Commission that was responsible for ensuring the money was being paid. This lack of regulation kept the floodgates open to organized crime elements that took advantage of this major oversight. Notable Chicago mobsters like Jimmy Hoffa began pouring in money to develop this lucrative market that had little to no oversight.

A notable figure in the aviation industry, Howard Hughes began buying up portions of property throughout the city in 1966. This included casinos and resorts tied to organized crime, with an estimated spend of over $300 million. The vast takeover by Hughes marked a turning point with a departure from the rampant criminally tied activities and moving closer to the metropolitan casino haven we now see. He is said to be a major influence on the more legitimate representation we know Las Vegas to be today.

The ‘70s and ‘80s were the beginning of the end for the mafia’s grip on Nevada casino establishments. Numerous FBI crackdowns and media spotlights, along with the decline of the mafia’s overall influence, gave room for legitimate operations to take over. This was also the beginning of the megaresort era, with the construction of The Mirage taking center stage in 1989. Apart from a dip during the home mortgage crisis of 2007, Nevada has seen a continued boom of casino resorts that carries on today.