The creation of the State Gaming Control Board (GCB) in 1955 represented a critical paradigm shift in Nevada history, moving the state's relationship with casinos from passive tax collection to active law enforcement.

The Catalyst

Precipitated by the Thunderbird Hotel scandal (which revealed hidden ownership by mobster Meyer Lansky) and the threat of federal intervention following the Kefauver Hearings, Governor Charles Russell championed the legislation to legitimize the industry.

Professional Oversight

The GCB was established as a full-time, professional investigative body with the power to audit, surveil, and recommend licensing actions, distinct from the layperson-staffed Tax Commission. For the first time, experts would police the industry.

The Privilege Doctrine

This legislation established the legal doctrine that a gaming license is a "privileged revocable status" rather than a property right, granting the state broad powers to deny applicants based on reputation and association. Licenses could be pulled at any time.

Foundation for the Future

This regulatory infrastructure laid the groundwork for the 1959 Gaming Control Act and the eventual corporatization of Las Vegas, making the GCB the prototype for modern gaming regulation worldwide.