By 1950, the state's population was just shy of 160,000 people. Casino and hotel construction flourished throughout the state, with more than 13 major casino openings.

Besides the tremendous growth of the industry, the 1950s introduced what would become the template for all other gaming jurisdictions to follow in regulating gaming. By 1952, commercial gambling had eclipsed mining and agriculture to become Nevada's largest revenue-producing industry. As Nevada's economy became more and more dependant upon gaming as an economic engine, the fear of federal gaming prohibition and negative public sentiment grew larger. This prompted the Nevada State Legislature to create the Gaming Control Board in 1955. A division of the Nevada Tax Commission, the board's primary purpose was to oversee the licensing and operation of Nevada casinos, all the while eliminating the unsavory elements that threatened the industry's existing and future integrity. In 1959, the legislature passed the Gaming Control Act, which established the Nevada Gaming Commission. The commission acted upon the recommendations of the Gaming Control Board and was the final arbiter of all gaming licensing matters. In addition, the gaming regulators created the now famous Black Book. The Black Book is a listing of nefarious characters and cheaters who are not allowed in casinos. This was a direct result of Nevada's commitment to further protect the industry's integrity.

Nevada's gaming regulatory system has been an integral part of Nevada's success and has become the standard upon which all other national and international gaming regulatory agencies are based.