Robert,
This law was passed by the legislature so on July 1, 1992, all new hotels in Nevada had to have at least 200 rooms in order to have unrestricted gaming on site. If I remember correctly, it was called "Screw the Indians law" by pundits because the spread of Native Indian gaming in other states was willy-nilly and Nevada wanted to keep the public policy of tourism and gaming being good for the state. Nevada wanted hotels to attract tourists to stay and gamble as well as see the "sights." I do remember many upstart Native American casinos in other states being very cheesy and dubious attractions not suitable for tourism. Of course as time has gone on that has changed dramatically but in many ways the State was prudent in enacting that law.