Nevada didn’t legalize gambling by accident. It didn’t drift into it, stumble into it, or wake up one morning and decide to embrace vice. Nevada legalized gambling because a quiet rancher from Humboldt County introduced two bills in 1931, and those bills changed the entire future of the state.
His name was Phil Tobin, and he had no ties to gambling, no connections to Reno or Las Vegas, and no personal stake in the outcome. That was exactly why he was chosen. In a year when Nevada was broke, desperate, and politically cautious, Tobin was the perfect sponsor for a controversial idea that urban legislators didn’t dare introduce themselves.
This is the story of Assembly Bill 98 and Assembly Bill 99, the two legislative acts that legalized gambling and created Nevada’s first regulatory framework. It’s also the story of the failed 1929 attempt, the political forces behind the scenes, the primitive licensing system that followed, and the early steps toward what would eventually become the Nevada Gaming Control Board.
Nevada Before 1931: Illegal Gambling and Economic Desperation
Nevada outlawed gambling in 1909, but the ban was more symbolic than effective. Gambling thrived everywhere, in back rooms, saloons, mining camps, and second-floor joints where the stairs creaked and the games never stopped. Local law enforcement often looked the other way, or worse, profited from the activity.
Tobin later said he was “tired of the way illegal gambling was being conducted,” noting that the only people benefiting were “local police officers” and anyone “with a deck of cards and a blanket.” Legalization, in his view, would bring transparency and fairness to a system already operating in the shadows.
By the late 1920s, Nevada’s economy had collapsed. Mining was dead. Ranching was unreliable. The state’s population was shrinking. Hoover Dam workers were on the way, and Nevada needed revenue, fast. Gambling wasn’t a moral question anymore. It was an economic lifeline.
The Failed 1929 Gambling Bill: The First Attempt
Two years before Tobin’s effort, a bill to legalize gambling was introduced in the 1929 Legislature. It failed, but it planted the seed.
The 1929 bill lacked:
- urgency
- political strategy
- economic pressure
- coordinated support
But it made the idea less shocking. It softened the ground. It gave pro-gaming forces a blueprint for trying again, and doing it right.
Behind those forces were Bill Graham and Jim McKay, former casino managers from Tonopah who had moved to Reno in the mid-1920s. Graham had worked for Nick Abelman, a friend and partner of George Wingfield, the richest man in Nevada for decades. Wingfield had banks, real estate, political influence, and a vested interest in shaping Nevada’s future.
Graham and McKay had experience, connections, and the willingness to push the envelope. But they needed a clean frontman.
Why Phil Tobin Was Chosen
Tobin was a freshman assemblyman from Humboldt County, one of the “Cow Counties,” far from the influence of Reno and Las Vegas. His rural background and lack of gaming ties made him politically bulletproof.
Urban legislators feared that introducing the bill themselves would make it look like a self-interested power grab. Tobin made the effort appear statewide rather than city-driven. He was also expendable. If the bill failed, he could be the “sacrificial lamb.”
But Tobin embraced the role. He believed legalizing gambling would bring order to a chaotic system and help stabilize Nevada’s collapsing economy.
Assembly Bill 98: Legalizing Gambling Statewide
Tobin’s first bill, Assembly Bill 98, repealed the 1909 ban and legalized wide-open gambling across Nevada. It allowed counties to issue licenses, regulate games, and collect fees. Tobin said the bill would bring gambling “into the open and above board.”
The Public Morals Committee Fight
The bill was sent to the Public Morals Committee, where Tobin faced intense opposition. He recalled that “there must have been 200 women and ministers there” protesting the measure. Despite the moral outcry, the bill passed, largely because legislators believed regulated gambling was preferable to the unregulated status quo.
The Money Behind the Scenes
Bill Graham helped pave the way with cash, not just his own, but also that of Wingfield and several Las Vegas operators. Harold Stocker, owner of the Northern Hotel and Casino in Las Vegas, quipped that he sent Graham a suitcase full of money. Interesting enough, his wife received the first license issued in Las Vegas.
The bill passed 24–11. Not everyone was impressed with Wingfield’s money or Graham’s blatant attempt to sway votes, but the bill’s passage marked the beginning of Nevada’s third historical phase: the gaming era.
Assembly Bill 99: Nevada’s First Gambling Regulatory Framework
Legalizing gambling was only half the battle. Tobin’s second bill, Assembly Bill 99, established Nevada’s first statewide regulatory structure.
It created:
- a licensing system for gambling operators
- county authority to regulate games and collect fees
- rules prohibiting gambling in places where minors were likely to be present
- restrictions on slot machine placement
Tobin specifically wrote into the bill that slot machines could not be placed in grocery stores, meat markets, or hotel lobbies, a major step toward professionalizing the industry, though it took years for those changes to take effect.
AB 99 was the first attempt to bring order to Nevada’s gaming industry. It wasn’t perfect, but it was a start.
Sidenote: The Wild West of Early Licensing
In the 1980s, I sorted through boxes of gaming licenses at the Nevada State Archives with the help of Guy Rocha, the state historian. He explained the history, and I took the notes.
Gaming licenses were no more detailed than fishing licenses. There was no background check, no financial resume, no details. Many licenses were nothing more than a carbon duplicate or a handwritten note with location, name, and operator. Fees were minimal, well under $100 for a nice property like the Humboldt Hotel.
It was a friendly occupation, this gaming business. The licensee might be the property owner, someone running the club, or even a single game operator. Many licenses listed only a last name.
Oh, how the times would change.
A Primitive Precursor to the NGCB
The early regulatory framework created by AB 99 was minimal compared to the modern Nevada Gaming Control Board (established in 1955), yet essential. It prevented the “wide open” era from devolving into chaos and gave counties the authority to enforce standards.
Tobin later said that without the eventual creation of the Gaming Control Board and Gaming Commission, “we wouldn’t have gambling here now,” because the public would have become disgusted with the corruption.
The skim era of the 1940s and 1950s proved him right. Nevada needed oversight, and Tobin’s bills were the first step toward creating it.
Aftermath: Tobin’s Legacy and the Birth of Modern Nevada Gaming
Tobin served only one term in the Assembly and one unremarkable term in the Senate before returning to Humboldt County. Yet his impact was enormous.
His two bills:
- legalized gambling statewide
- created the first regulatory framework
- set the stage for the 1955 NGCB and 1959 Gaming Commission
- laid the foundation for Nevada’s transformation into a global gaming center
As historian David Schwartz put it, Tobin is “pretty much known for the gaming legislation, which is probably a big enough thing, because that changed the whole state.”
And he’s right. Tobin didn’t just legalize gambling, he legalized Nevada’s future.