First time I heard that story.
AND:
I do not believe that story.
And would not believe it unless I read it in the gaming commision minutes.

Gaming commission came into being in 1955.
IMO there is no way a casino would have operated in the late 70's for a year without a license.
All of their minutes are available. I have copies of them for the 1st 5 years.

Soulds like one of those "Nevada Boys" stories to me.