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The 1931 Legalization of Gambling

Nevada Bets on Its Future

The 1931 Legalization of Gambling
1931

On March 19, 1931, Nevada Governor Fred Balzar signed Assembly Bill 98, making Nevada the first state to legalize most forms of gambling since the Progressive Era. This decision would define the state's identity for the next century.

Depression Economics

Nevada faced economic devastation in 1931. Mining had declined, ranching was marginal, and the population was shrinking. The legislature searched for any revenue source—gambling seemed as good as any.

The Legal Framework

The 1931 law legalized table games, slot machines, and horse race betting, establishing a licensing system with modest fees. County governments controlled licensing initially, with no centralized state oversight.

The Divorce Trade

The same legislative session reduced the divorce residency requirement to six weeks, the shortest in the nation. This created a secondary industry: wealthy easterners seeking quick divorces would spend six weeks in Nevada, gambling away the time.

"We had nothing to lose. The state was dying. Gambling was a gamble on survival."— Phil Tobin, State Assemblyman

The Foundation

The 1931 legalization established Nevada as America's gambling haven, a status it would hold monopolistically until Atlantic City opened in 1978. Ninety years later, the decision remains the foundation of the state's economy.