When the 6-story Hotel Nevada opened in 1929, it was the tallest building in the state and its first fire-proof building. Guest speakers were Senator Tasker L. Oddie and Congressman Sam Arentz, and rooms rented for $1.50 and up, "All with private toilet; 85% with private bath."

Prohibition was in still in effect when the hotel opened, and from the beginning bootlegged refreshment and gambling were available 24 hours a day. "Bathtub Gin" made from raw alcohol, water, and flavorings and "White Lightening" was conveniently supplied by local individuals. On October 24 the Stock Market crashed and Depression struck and the Hotel Nevada leased commercial space to a bank and drug store as well as providing illegal gambling and booze. When Gambling was again legalized in 1931, the owners immediately installed blackjack tables and slot machines.

Bud Simpson bought the hotel in 1956 and he and his wife, Pinky, promoted and managed the business until 1963. They established the Ely Travel Service to promote the Hotel Nevada, offering Salt Lake tourists a "round-trip bus ride to Ely, a free room at the Hotel Nevada, a free round of drinks — all for eleven dollars. And in Ely, four dollars is refunded." Simpson knew most of those taking advantage of the offer would spend more money on food, drink and gambling, which would substantially offset the travel service's offer. He also knew that an "average player will stay to lose, but won't stay to win."