In the 1980s, Nevada was the fastest growing U.S. state as the population grew by an average of more than 3,300 people a month to 1.2 million by 1990. The early part of the decade was a time of concern for both Reno and Las Vegas because Atlantic City had legalized gaming in the late 1970s, which ended the legal monopoly Nevada had owned for more than 45 years. Added concern was provided by the MGM Grand fire in Las Vegas and Harvey's Hotel-Casino bombing in Lake Tahoe, which provided a terrible rash of bad publicity for Nevada gaming operators.

But by the end of the decade everything was about to change as a Las Vegas icon took what was considered the state's biggest gamble by building a $750 million “mega-resort,” ushering in a new era in Las Vegas gaming. November 1989, Golden Nugget owner Steve Wynn opened The Mirage to much fanfare, attracting attention from around the globe. The Mirage was considered the most elegant property in Las Vegas. Its exterior centerpiece was a manmade volcano with waterfalls facing the Strip entrance to the hotel. The theme carried into the casino and hotel by strategically placed indoor plantings, a white tiger habitat and 20,000 gallon aquarium, creating the illusion of a South Pacific paradise. Even though the International was large and had integrated entertainment and Caesars Palace was luxurious, both primarily focused on the casino. The Mirage's focus was on providing a luxury resort experience that happened to have gaming.

The opening of The Mirage sparked what was to be one of the largest regional construction and population explosions the United States had ever seen.

In 1988, the U.S. Congress formally recognized but limited the right of Native Americans to conduct gaming operations with the passage of the Indian Gaming Regulatory Act (IGRA). Northern Nevada would ultimately feel the effects of reservation gaming after the year 2000 upon California's acceptance of Native American gaming establishments.