Las Vegas was only a trading stop at the time. This is how Nevada’s gambling history began. Another attempt in 1869 succeeded in allowing certain forms of gambling. When Nevada became the 36th state in 1864, the Nevada State Legislature tried to legalize and regulate gambling but failed. Illegal gambling was rampant, and no amount of fines would change that. History tells us that Nye had a firm stance against gambling and other games of chance, but also that Nevada’s people, much like the desert, were untameable. But then came a day when James Nye was appointed Nevada Territory Governor, which marked the beginning of the territory’s turbulent relationship with gambling. So, how did it all start and what was the first casino in Las Vegas? Las Vegas: The Beginningsīack in the day, the citizens of Nevada and Las Vegas were no strangers to gambling. No one could have predicted back in 1905 that a small stopover town between Los Angeles and Salt Lake City would turn into a mega-resort and the gambling capital of the US that it is today.