On March 19, 1931, Governor Fred Balzar signed Assembly Bill 98, ending Nevada's 21-year gambling prohibition. The legislation, introduced by Assemblyman Phil Tobin of Humboldt County, would transform a struggling desert state into the gambling capital of the world.

The Bill's Provisions

Assembly Bill 98 established a county-level licensing system with remarkably low barriers to entry. Annual license fees were set at just $300 for table games and $100 for slot machines—affordable sums that encouraged widespread adoption. Counties retained licensing authority and enforcement power.

The First Licensees

The Northern Club on Fremont Street received license number one. Within months, establishments like the Boulder Club, Las Vegas Club, and numerous smaller operations obtained licenses. Many operators had been running underground games for years; legalization simply moved them into the light.

The Regulatory Gap

The 1931 law created minimal oversight. There were no background checks, no gaming control board, and no systematic auditing. This regulatory vacuum would persist for over two decades, creating the conditions for organized crime's eventual infiltration of the industry.

The Foundation

Despite its limitations, Assembly Bill 98 laid the foundation for everything that followed. The decision to legalize, regulate, and tax gambling—rather than futilely prohibit it—became the template other jurisdictions would eventually follow.