By 2000, Nevada's population was nearly 2 million people, with nearly 7,000 people moving monthly to Las Vegas. The resort industry was running strong up until the fateful day of September 11, 2001. In a few hours of tragedy, Nevada's resort industry felt the effects. Once considered recession proof, Nevada's resort industry showed its vulnerability and the state's budget suffered dramatically. Secondary to the tragedy beheld by New Yorkers, many resort employees were laid off as U.S. travel became a trickle of what it was just weeks before. Hotel rooms were empty, entire areas of casinos were quiet and Nevada faced one of its greatest challenges: how to inspire travel back to Nevada.

Through the intensive and extensive efforts of the Las Vegas Convention and Visitors Authority, Nevada Commission on Tourism and Reno/Sparks Convention and Visitors Authority, Nevada steadily regained its position as the nation's favorite playground. Unfortunately, the damage was done. The state faced a budgetary crisis due to the reduced resort-related tax revenues. But by 2005, the tax revenues were back on track and so was the industry.

As Reno experienced a significant population boom, Reno refocused itself not exclusively as a gaming destination but also as an outdoor/adventure destination embracing the areas' plentiful natural surroundings. Californians who once only gravitated to Las Vegas were finding Nevada's tax benefits were statewide.

Las Vegas' popular “Only Vegas” campaign, which used the now famous “What happens here, stays here™” tagline, found a new market of young travelers seeking a complete resort experience. Ultra lounges, mega-nightclubs and world-class restaurants began opening at a fevered pace. Las Vegas had once again retained its place as the city the rich and famous came to play.

MGM MIRAGE acquired Mandalay Resort Group in 2005, making it the largest resort operator in Nevada. Soon after, Harrah's Entertainment acquired Caesars Entertainment, making Harrah's the largest gaming company in the world. A number of properties opened during the 2000s, including, but not limited to: Wynn Las Vegas, Green Valley Ranch, Resort and Spa, Red Rock Resort and Spa, THEhotel, Palms, Trump International, Encore, The Palazzo, M Resort, and ARIA (CityCenter).