On December 3rd 1951, the Nevada State Tax Commission approved a probationary gambling license for Binion which would go into effect on January 1st 1952. In order to get the license Binion had to agree to several conditions--one of which was that he had to swear out an affidavit stating that he was not involved with gambling in any state where gambling is illegal.

Binion held a gambling license for the Horseshoe until he forfeited it in December 1953 when he officially transferred ownership of the Horseshoe to Joe W. Brown prior to pleading guilty to Federal tax violations which sent him to Leavenworth Penitentiary. He never held a gaming license again.