Recently, the Reno Gazette Journal published an article remembering the legalization of gambling. It quoted an article form 1931: “By vote of the legislature and with the support of the state administration,” Nevada State Journal publisher J.G. Scrugham wrote, “Nevada is embarking upon an era of what may be termed ‘legalized liberality.’” And so, on March 19, 1931, Reno and Las Vegas were off to the races. In fact, the original article said that “Hammers, saws and cement mixers were industriously at work last night as a night shift of workmen continued its rush toward completion of enlarging and renovating the Bank Club downtown gambling resort.” The Bank Club was already operating, as were others, but now fully legal, it was ready to “attract sporting crowds.”
In the beginning, it was like a race as the two ends of Nevada competed to be the gambling capital of the state, and by default the capital of the nation and the world. Reno was already crowned the “Divorce Capital of America.” The same day that wide-open casino gambling was legalized, Nevada Governor Fred B. Balzar also signed a bill shortening the residency requirement, to qualify for a divorce, to a scandalous six weeks. In the midst of the Great Depression, Reno was positioned for success.
Las Vegas had something bigger in its bag of tricks, Hoover Dam. The workers that built the dam also built Las Vegas. They took their paychecks to town and few other cities in the country had that much cash on the loose. Las Vegas also had the mob and Hollywood on its side. By the 1950s, the Nevada gambling wars were over and the world had declared Las Vegas the winner.
Reno was still second in the nation until 1978 when Atlantic City joined the fray. Atlantic City quickly claimed second place and at times, it even threatened to overtake Las Vegas. Reno quietly slid into the background, no longer a contender. But Reno and its casinos continued to prosper until the advent of Indian gaming. The National Indian Gaming Regulatory Act passed in 1988, but it took a few years before the consequences reached Reno. When California Governor Pete Wilson signed the first Indian gaming compact with the Pala Tribe in 1998, it put the exclamation mark on Reno’s relationship with tribal casinos in its feeder markets.
Before Indian gaming, Reno had been on a long growth curve. Using slot machines as a measure of gaming activity in Reno and Washoe County gives a picture of the trends. In 1963, there were 7,200 slot machines in the county. In 1990, that number had reached 28,000. In 1999, just before the tidal wave from California hit Nevada’s shores, there were 33,000 slot machines in the region. Today, that number is 18,000.
Reno faced some very difficult years in the beginning of the 21st century. The crisis was topped off with the Great Recession, when Reno and its casino industry seemed destined for the scrap heap. However, just as the garbage trucks were arriving, Reno caught a break. Outsiders with a different vision saw in Reno not disaster, but a potential gold mine. The most famous of those outsiders were Tesla, Panasonic, and Amazon. Those three, along with other high-tech companies, started a process of reimagining, rebranding, and revitalizing Reno. The Biggest Little City was suddenly on the radar of companies that before would not have considered it.
Besides the techies, two others saw an opportunity for casino gambling rethought: Alex Meruelo and Jeff Jacobs. Their visions are different, but their budgets are both in the billions. It is the kind of investment that Las Vegas attracts, but never before Reno. Meruelo is an entrepreneur with a history of building businesses in different industries, from food to media, sports to casinos. He bought the Grand Sierra (now called the GSR) in 2011 and has spent years slowly improving the property and building up the businesses. In 2024, the process was put into high gear. Meruelo announced a billion-dollar project.
Meruelo says his vision is to transform the GSR into a destination where community, sports, and entertainment come together. And he says the resort will be the result of a long-held dream and unlike any other resort we might have seen.
Jacobs is a developer and casino owner. He cut his development teeth in Cleveland, Ohio. After losing an election, Jacobs committed to development. He bought property in Cleveland and is credited with bringing life back to its downtown. By the time he came to Reno, Jacobs’s company had casinos and slot routes in several other states. In Reno, he bought the Gold Dust West.
The Gold Dust is the polar opposite of the Grand Sierra. The Grand Sierra opened in 1978 as the MGM Grand and had more rooms than any other casino north of Las Vegas. It was a resort from the get-go.
The Gold Dust, on the other hand, was a converted grocery store and motel, nothing grand to be seen. Jacobs waited more than 10 years before beginning the process of redeveloping an entire section of downtown Reno. He just finished and opened a 60-unit housing project and announced the next phase, a $200 million project with housing and retail. Jacobs now has two casinos in the district, including the former Sands Regency; he is not planning a megaresort. Instead, his plan is a mixed-use district with housing, retail, entertainment venues, and casinos.
Reno has lost three-quarters of its casinos. But there is a new energy in the city and it includes casinos with grand visions.
