Historical Perspective of Nevada Casinos

When you think of the state of Nevada what comes to mind? The beautiful landscapes? UFO sightings and Area 51? We’re willing to bet it’s none of the above. What comes to mind when the majority of people think about the great state of Nevada is one thing and one thing only - gambling! Las Vegas. Reno. And every other small town in between. Gambling and Nevada go hand in hand like peanut butter and jelly. It’s no wonder Nevada - and Las Vegas in particular - is known as the entertainment capital of the world.

Most people see Las Vegas today and think that’s what gambling has always been in the state of Nevada. But they’d be wrong. The history of gambling in Nevada has taken many twists and turns, dealt with resistance - and answered that with resilience - has a somewhat checkered past and beginning, and constantly finds itself adapting to new technology and changes in society.

That’s why today, we thought it’d be a fun idea to give you an in-depth look at the history of gambling in Nevada. From its history, to the changes in casinos and the impact it all has on tourism and the local economy. So let’s get read to take a trip back in time!

The History of Gambling in Nevada

When people think about gambling in Nevada they automatically think about the glitz and glam of the Las Vegas strip. The lights. The action. The resorts. But that’s not always how things were. The beginnings of gambling in Nevada have a somewhat humbling beginning and can be traced back to one of the most important and impactful moments in American history - the Great Depression.

Like most of the country, Nevada found itself struggling mightily. Jobs were scarce. Residents were hurting. Things were bad. The state needed to do something in order to pick up the pieces and not only get their residents back on their feet with jobs, but also to bring in visitors to help stabilize and support the state’s economy. So, in order to achieve that, the Nevada Legislature made the decision to legalize many forms of gambling in 1931. This was a bold step for many reasons. The first being that up until that decision, gambling was seen by many as unlawful. Casinos were kept hidden in basements or out of the public view. It was seen as a vice and not something that legitimate businesses took part in.

This decision by the Nevada Legislature changed all of that. Suddenly, people began to think as gambling not as something to keep hidden in the shadows but something that could be proudly and - more importantly - legitimately displayed for all to see and enjoy.

Soon after that decision, what is widely thought of as the first legal casino opened in Nevada. It was known as the Pair-O-Dice Club and was located on Highway 91 - better known today as the Las Vegas strip. The success of the Pair-O-Dice Club brought with it a slew of other casinos, and soon, Nevada - and Las Vegas in particular - was embracing gambling and advertising it across the country.

And this is where the checkered past of Nevada gambling comes into play. There was people who saw the success legalized gambling had - and the money it brought in - and wanted a piece of the action. Nevada was growing, population was booming and small desert towns like Las Vegas were now bustling with business. It was only a matter of time before unsavory characters wanted to get a piece.

And that was the Mafia.

The Mafia was at its height in the 1940s and 1950s, having pieces of just about every major business across America. It only made sense that they looked at the gambling industry as a way to make a lot of profit - and make it legitimately. Infamous Mob figures like Bugsy Siegel, Meyer Lanksy and Frank Costello were some of the many who got involved with not only developing the gambling industry in Las Vegas but also helping it grow.

The Flamingo Hotel, one of the most iconic hotels in all of Las Vegas, was built by none other than Bugsy Siegel. It marked the start of the Mob’s influence, bringing in bigger and more grand hotels and casinos. The era’s biggest stars would routinely visit these casinos, bringing in more money and more attention. It was an open secret that the Mob had its hands in the casino business in Las Vegas, but because of the rapid growth, it was always brushed aside. That’s why you can’t ignore the fact that Las Vegas owes a great deal of its success to the Mob in those early years. Without their influence and willingness, it’s very possible that the Las Vegas we know today wouldn’t exist.

But despite the clear connection between Las Vegas’ success and the Mob, it soon became clear that having the Mob connected with the gambling industry was bad for business. The state knew it needed to start distancing itself from the Mob and all of its associates, so in the 1960s they began to do just that. The introduction of regulatory bodies like the Nevada Gaming Control Board and the Nevada Gaming Commission marked a major shift in the industry.

These regulatory bodies were established to oversee the industry and to ensure transparency and legitimacy. More importantly, they were established to clean up the gambling industry. By this point, gambling and Las Vegas went hand-in-hand with the Mafia. But with these regulatory bodies taking a closer look at how these businesses operated, the Mafia saw that their time was up.

So as the Mob’s influence began to dip, major corporations saw an opening. Land was for sale. Hotels and casinos were for sale. It was a good investment. And in 1967, billionaire Howard Hughes purchased the Desert Inn, marking a new era for Las Vegas and gambling in Nevada as a whole. Soon, it would be corporations that dominated the city and with it came a complete shift in the city and state’s image.

As time went on, the image of Las Vegas and Nevada gambling continued to change. Instead of small desert hotels that dominated the landscape, there were more and more mega-resorts being built. The Mirage. Bellagio. Caesars Palace. The Venetian. These impressive developments not only offered gambling but also top rated restaurants, entertainment and amenities.

As more and more of these resorts began to pop up, the Las Vegas strip began to take shape and become the entertainment capital of the world as we know it today. Las Vegas went from a Mafia run town to a family friendly destination where millions of people enjoy top quality gambling, entertainment, dining and shopping. But without those humble beginnings, gambling in Nevada - and in Las Vegas - would look much different.

Evolution of Casinos in the State

Whether it’s Las Vegas, Reno, or any other town in Nevada, when you think of casinos you think of lights and extravagant and impressive decor, large sculptures and amazing fountains. Going to a casino nowadays is really a sight to behold. But those casinos didn’t always look that way. In fact, things have come a long way in a relatively short amount of time.

As we mentioned above, one of the first casinos in Las Vegas and Nevada was established in 1931. The Pair-O-Dice Club was a pretty simple building. It offered gambling, drinks and dancing. There wasn’t much pizzaz or bright lights. It was a simple white structure and if you didn’t know it was a casino, you’d probably drive right past it. Those early casinos were more worried about allowing visitors to gamble than they were in building an impressive casino. If it had 4 walls and a roof then it was good enough to offer gambling.

But as things started to take off and legalized gambling started bringing in immense amounts of money, people began to realize that having an impressive casino ALONG with gambling could bring in even more business.

It was around the 1960s and 1970s when Las Vegas really began to embrace this notion and people started seeing casinos evolve. One of the major moments in this trend came in 1966 with the opening of one of the most iconic casinos in all the world - Caesars Palace. When it opened, Caesars Palace set a new standard for casinos. It was extravagant and beautiful. It offered players and visitors top quality gambling along with luxurious hotel rooms, spas, world class entertainment and renowned dining.

Caesars Palace opened the door for the Las Vegas we know today. Soon after, more and more of these “mega resorts” would pop up along the Strip. Visitors were suddenly able to enjoy an immersive, themed casino experience which offered so much more in terms of experience and grandeur than the early casinos. These new casinos weren’t just about gambling. It was the experience as a whole, giving players something they’ve never had before.

But although the experience of going to Las Vegas had grown and now gave players and visitor more to see and do, the main attraction was still gambling. People still dreamed about hitting it big and catching that lucky break that would change their lives. And while table games have changed very little - if at all - in hundreds of years, one main gambling option has changed - Slots.

Players were used to the traditional mechanical slots known as ‘One Armed Bandits’. They would pull the lever and the 3 reels would spin. There were only one payline and that’s the extent of it. Don’t get us wrong, when slots came onto the scene they were seen as revolutionary and helped the gambling industry grow. But as time went on casinos knew they needed to offer players something different.

Enter the video slot. These new slots offered much more in terms of gaming experience. They had lights, and sounds and themes and graphics. Players could get immersed in their sessions. And another thing they offered were more chances at winning. These new video slots offered players more chances with more paylines, wild symbols, bonus features and more bet sizes.

Soon, casino floors did away with the traditional slots and their floors were lined with the bright lights and sounds of the video slots we know today. Players loved them, with all their extra features and potential for huge payouts, video slots soon became the most popular gaming feature at casinos.

Along with the changes to slot machines, casinos also started to update their table game offerings. While the classics like Blackjack, Roulette, Poker and Craps have been and always will be mainstays, casinos started to offer games like Sic Bo, Baccarat and others. And along with these games, casinos started to incorporate specialty games like War, High Low, Wheels of Fortune and many others. These specialty games brought a new sense of energy to the casino floor that wasn’t there prior.

And casinos didn’t stop there. With these new games and technological improvements, they saw another area where they could not only make their customers happy but also keep the bets flowing. Enter the VIP and Loyalty Rewards programs. These program were introduced for players who made frequent stops to the casino and wagered regularly. The thought process was that the casino would offer extra perks to those players in exchange for their continued visits - and wagering. It didn’t take long for this rewards programs to become a hit and every casino to start offering them. They are free to join and any action at a casino - whether it be gambling or buying dinner - will get a player points on their rewards card. Those points add up and give players special perks such as free play on slots, discounts on various amenities and even free rooms, dinners and tickets to events. Special sweepstakes were also introduced that saw casinos giving away huge amounts of money, cars and extravagant trips.

And we can’t ignore another major addition to the casino - the Sportsbook.

Sports gambling has always been a mainstay in the gambling industry. But like gambling as a whole, it was long seen as something that should stay in the shadows and something that was illegitimate. But when Nevada legalized gambling, they soon followed by legalizing sports gambling. And with that came the addition of the sportsbook to every major casino. These sportsbooks are almost like casinos within the casino. They have bars, chairs, betting windows and huge monitor displays that show more sporting events than one person could comprehend. It’s an experience that is truly like none other.

All in all, the casino experience has come a long way since its start. What began as simply a handful of gaming options has morphed into an immersive experience with countless gaming options, player rewards and perks.

Impact on Local Economy and Tourism

It’s no surprise that the gambling industry is one of the main pillars - if not the most important one - of the Nevada economy. Without it, Nevada would look much different and one questions if it would have the same appeal and population that it does today.

The revenue created by casinos - from the gambling, sportsbooks, hotels and other events - actually contributes a HUGE amount to the Nevada state budget. These funds help fund public services AND goes to infrastructure development and projects. And on top of that, the taxes that casinos must pay on gaming related activities accounts for a large amount of the income for the state government. That income then is used for services such as education, health care and public safety. Without these funds from casinos, Nevada would be severely hampered and their public services and infrastructure would be suffering.

A lot of people thing casinos operate on their own and are somehow immune from taxes. At the end of the day ‘the house always wins’. But the reality couldn’t be further from that assumption. Casinos, like any other legitimate business, pay their taxes. And with the gambling industry such a major factor in the state of Nevada, those taxes help the state function properly.

Along with helping the state function in terms of infrastructure and public service, the other main advantage to casinos to the state is employment. If you’ve ever been to a casino in Las Vegas or even Reno then you know how large they are. There are hundreds - even thousands - of jobs required to help make sure the casino runs smoothly and properly. Dealers. Pit Bosses. Security. Hotel Management. Cleaning Services. The list goes on and on and on. These casinos offer residents of Nevada a secure employment and one that can help them provide for themselves and their families.

And the casinos themselves aren’t the only ones that benefit here. Because of their large operations, other businesses such as catering, transportation, rental cars and hotels benefit as well. The large reach of casinos and they opportunities they create for not only their own workers but workers in the state in general is something that can’t be dismissed.

If Nevada gives their own residents job opportunities it’s because they are catering to the biggest reason for the need - tourists. Tourists from all over the world flock to Nevada yearly in order to enjoy everything it has to offer. It’s no secret that the allure of Las Vegas - with its casinos, hotels, entertainment and dining - is the main attraction, but the overflow is real.

Nevada has so much more to offer than just gambling, and oddly enough, it’s BECAUSE of the gambling industry that tourists can experience it all. Hiking, camping, horse back riding, extreme sports, professional sports - it’s all there to be had and experienced in Nevada. Major events like the NFL Draft and even the Super Bowl are held in Las Vegas, and one can argue that if it weren’t for the gambling industry, events like that would not taking place in Las Vegas.

There’s also the newest attraction - The Sphere. With its dazzling displays and world class entertainment, it’s just another attraction that tourists can enjoy when they arrive in Las Vegas.

The reality is, no matter what you want to experience, Nevada has it to be enjoyed. And if it weren’t for the gambling industry and the casinos that populate the state, none of it would be available today. The gambling industry is often seen and problematic and as a vice, but as we can see, it can help make communities better by offering steady employment while also giving other businesses and industries a chance to attract tourists as well.

Conclusion

Without the gambling industry, the entire state of Nevada would look much different today. Las Vegas would certainly not be the global entertainment destination that is today. But as we can see, the gaming industry and the state are interlocked. They have both benefited from each other - whether it be in tourism, taxes or regulatory bodies - one cannot operate without the other. The casinos that populate the state and the Las Vegas strip have changed so much over the years. From their humble beginnings in 1931 to the Mob owned resorts that populated the desert in the 40’s and 50’s to the mega resorts that we all know today, the casino industry has changed and changed for the better. It gives players top quality gaming experiences and continually updates and adapts to what players want and the technology that is evolving.

And as that technology advances and casinos face competition from online casinos, they will continue to offer experiences that you can only get in person. That experience or walking onto the casino floor, of seeing a show live or hitting it big with fellow players is what will keep players coming back year after year. And the entire state of Nevada will be benefiting along with the entire gambling industry.