Nevada Legalizes Gambling (1931)

1931

Date signed: March 19, 1931
Law: Assembly Bill 98 (Chapter 99, Statutes of Nevada 1931), the "Wide Open Gambling Bill"
Sponsor: Assemblyman Phil Tobin, a 29-year-old freshman Republican from Humboldt County
Signed by: Governor Fred B. Balzar
Senate vote: 13 to 3
Prior ban: Gaming was outlawed from October 1, 1910; illegal from 1913 to 1931 after a brief 1911 repeal
First Clark County license: Northern Club, 15 E. Fremont St., licensed to Mayme Stocker and Joe Morgan in 1931
State regulation: State licensing and a 1% gross revenue tax in 1945; Gaming Control Board 1955; Gaming Commission 1959
Same year: Nevada cut divorce residency to six weeks in 1931
Where to see it today: Fremont Street, where the first licensed casinos opened; The Mob Museum in Downtown Las Vegas

About

Nevada first legalized gambling in 1869, when the legislature overrode the governor's veto. Pressure from groups such as the Women's Civil League and the Anti-Gambling League of Reno led to a law banning all gaming from October 1, 1910. After a brief repeal in 1911, the ban returned in 1913, and gaming stayed illegal until 1931. The ban was unevenly enforced, and backroom games continued in many towns, including Las Vegas's Block 16.

By 1931 Nevada was in trouble: drought, a collapse in mining, cattle at 3 cents a pound and the Depression. Freshman Assemblyman Phil Tobin of Humboldt County introduced a bill to legalize and license gambling, arguing that it was too common to ignore and went untaxed. Opponents warned it would attract gangsters. Assembly Bill 98 passed the Senate 13 to 3 and was signed by Governor Fred Balzar on March 19, 1931.

In Las Vegas the effect was quick. The first gaming license in Clark County went to Mayme Stocker and Joe Morgan at the Northern Club on Fremont Street. The Meadows opened that May east of town, and small Western-themed clubs filled the blocks of Fremont Street between Main and Third. Hoover Dam workers, arriving in large numbers the same year, became regular customers. Nevada also cut its divorce residency requirement to six weeks in 1931, bringing more visitors.

For its first years the law left regulation to local governments. As casinos multiplied, the state began requiring licenses and taxing gross revenue at 1 percent in 1945. In 1955 the legislature created the State Gaming Control Board, with background checks for applicants, and the Nevada Gaming Commission followed in 1959. The Las Vegas Sun later called the 1931 bill the cornerstone on which the city's economy was built. Tobin became known as the father of modern Nevada gambling, though late in life he said he regretted slot machines spreading into supermarkets and restaurants.

What to expect

Fremont Street in Downtown Las Vegas was where licensed casinos first opened after 1931; the Northern Club stood at 15 E. Fremont, between Main and First. The Mob Museum, a nonprofit museum of organized crime and law enforcement in Downtown, lists museum hours of 9 a.m. to 9 p.m.; its mission is the public understanding of organized crime's history and impact, and its Underground speakeasy is surrounded by artifacts from the 1920s Prohibition era. Check its site for current hours and admission.

Before and after

El Rancho Vegas Opens (1941)

Good to know

Sources disagree on the Assembly vote: the Legislative Counsel Bureau records it as 24 to 1, while a 2008 Las Vegas Sun article gives 24 to 11. Both agree the Senate vote was 13 to 3.
Nevada had legalized nickel slot machines in 1905, before the 1910 ban, according to the Legislative Counsel Bureau.
The Northern Club's licensed owner was Mayme Stocker; the Online Nevada Encyclopedia says this was reportedly because the Union Pacific, which employed her husband and sons, frowned on employees in the gambling business.
Early casino games included faro and monte, card games no longer played in Nevada casinos, according to the Las Vegas Sun.
The Gaming Policy Committee was added in 1961 to advise the Control Board and Commission.

Questions about Nevada Legalizes Gambling (1931)

When did Nevada legalize gambling?

Nevada legalized gambling in 1869, banned it from 1910, and relegalized it with Assembly Bill 98, signed by Governor Fred Balzar on March 19, 1931. The 1931 law, often called the Wide Open Gambling Bill, is the one that made modern casinos possible and is the date usually given for legal gambling in Nevada.

Who was Phil Tobin?

Phil Tobin was a freshman Republican assemblyman from Humboldt County in northern Nevada who introduced the 1931 gambling bill. The Las Vegas Sun describes him as a 29-year-old cowboy and says he became known as the father of modern Nevada gambling, although he later criticised slot machines appearing in supermarkets and restaurants.

Why did Nevada legalize gambling in 1931?

The state was struggling with drought, a mining slump and the Depression, and illegal gambling was widespread and untaxed despite the ban. Supporters argued it made more sense to license and tax it. Opponents said it was a vice that would attract gangsters. The bill passed the Senate 13 to 3 and became law on March 19, 1931.

What was the first casino in Las Vegas?

The City of Las Vegas says the first gaming license in Clark County went to Mayme Stocker and Joe Morgan at the Northern Club on Fremont Street in 1931. The Las Vegas Sun names the Meadows, which opened in May 1931 east of Charleston Boulevard and Fremont Street, as the first of the new casinos to open after the law passed.

Who regulates gambling in Nevada?

Two state bodies. The Nevada Gaming Control Board, created in 1955, investigates applicants and administers the regulations. The Nevada Gaming Commission, created in 1959, is a five-member body appointed by the governor that acts on the Board's licensing recommendations and is the final administrative authority on licenses.

What else changed in Nevada in 1931?

The same year, Nevada liberalized its divorce law so that residency could be established in six weeks, and many short-term residents stayed at dude ranches. Construction of Hoover Dam also began in 1931, bringing thousands of workers to the region. Together these changes started a population and visitor boom in Las Vegas.