Las Vegas, a city that became part of the state of Nevada in 1905, was originally built for railroad purposes. Five years after its inauguration, there were only 800 residents in Las Vegas according to United States census data.

However, in the 1950s, Las Vegas turned into a famous gambling tourist spot with various top celebrity performances. There are many more factors and stories behind Las Vegas' success as a gambling center, from the arrival of workers to federal projects in Nevada, the crackdown on illegal gambling in Los Angeles, to the migration of the mafia to Vegas.

The following is the history of Las Vegas until it became a very famous gambling center.

The role of former police officers In 1931, the Nevada government legalized gambling with the aim of increasing state revenues and responding to the economic hardships that occurred during the Great Depression. At the same time that gambling was legalized, the government also built the Hoover Dam project.

Then, project workers traveled about 25 miles to Las Vegas to enjoy gambling on Fremont Street, which was the center of Vegas before the Strip. During World War II, the opening of a magnesium plant near Henderson, Nevada, also brought a large population of workers looking for weekend recreation. However, the arrival of gamblers every two weeks is not enough to make Las Vegas a gambling center.

For this reason, people who are experienced in running a gambling business are needed, namely the gambling business mafia. One of the most influential was Guy McAfee, an LA police officer in the vise force who fled California to avoid prosecution for running a gambling and prostitution racket in between his duties.

When Nevada legalized gambling in 1931, McAfee saw a great opportunity and moved to Las Vegas. He brings extensive experience running illegal gambling businesses in Los Angeles.  McAfee's arrival brings great benefits to the development of the gambling industry in Las Vegas.

He helped establish the casinos and resorts that became an integral part of Las Vegas' transformation into a leading gambling center.

Another major turning point came in 1941, when a hotel-casino merger along Highway 91 was later nicknamed The Strip by McAfee. The Strip became successful because it helped make gambling a part of Vegas tourism.

This success encouraged many people and investors to open hotel-casinos in Las Vegas. Several new casinos began appearing on Fremont Street called Glitter Gulch in 1946. After a boom in casino construction, McAfee and other casino owners founded an unincorporated town called Paradise in Nevada to avoid taxes.

Gambling is managed by the mafia

At the same time as McAfee and his associates were building gambling resorts, and looking for ways to avoid taxes, a new group of people began to see the potential of opening their own Vegas casinos.

One of the first mafia figures in the Vegas gambling industry was Benjamin "Bugsy" Siegel, who helped open The Flamingo in 1947 on The Strip. After Siegel's murder, other mafia figures began to become involved in the city's gambling industry.

Geoff Schumacher, vice president of exhibitions and programs at The Mob Museum in Las Vegas, said the city is a lucrative haven for criminal mobsters. First, mobsters who have run illegal gambling rings in other cities can make money legally from gambling in Las Vegas.

Until the 1970s, Nevada was the only state with legal casino gambling. Second, smuggling. The mafia can easily profit from the proceeds of the casino business without being taxed. 

In the 1950s, mobsters brought celebrity shows to Vegas as a way to lure more people to the casinos by creating various nightclubs. Since the mafia runs nightclubs in many major cities, they have connections with top celebrities.

In addition to celebrity appearances, many Las Vegas resorts began using nuclear testing as a way to attract tourists to the casinos. The city is about 65 miles from the Nevada nuclear test site.

Before nuclear tests were conducted, many resorts held parties to celebrate the tests. The party will sell special drinks which are even named atomic cocktails and there will also be a beauty contest called Miss Atomic Energy.

In this way, these mafias take advantage of existing opportunities to attract the attention of tourists to come to Las Vegas. Also read: Receiving criticism, Japan approves construction of first legal casino.

Casino Competition

In the mid-1960s and 1970s, resort ownership in Las Vegas began to change.

Howard Hughes purchased the Desert Inn in 1967, as well as many other properties there. Hughes' purchase helped drive out several mafia figures who became hotel and casino owners. The same year that Hughes purchased the Desert Inn, Nevada also passed the Corporate Gaming Act which made it easier for companies to manage casinos.

This paved the way for companies to purchase resorts in Las Vegas once again displacing the mafia owners. After Atlantic City opened its first casino in 1978, Las Vegas faced more intense competition in the gambling industry.

Many areas in the United States are starting to legalize casino gambling to increase revenue and attract tourists. This has led to the emergence of more gambling destinations across the country thereby reducing dependence on Las Vegas as the only major gambling center. Las Vegas responded with diversification and expansion in the form of grand resorts offering a variety of entertainment in addition to gambling.  Even now, Las Vegas is still one of the leading gambling destinations in the world.