Some social scientists contend that the nature, frequency and severity of a particular condition or issue are often grossly exaggerated in order to justify further economic or political action or to enhance the legitimacy of various affected organizations. The result can be a "moral panic," a situation in which public fears and state interventions greatly exceed the objective threat. The article reviews legislative records, media accounts, and official crime data in an attempt to determine whether the response to gangs in Las Vegas in the late 1980s constituted a moral panic. The article also considers the possible discrepancy between the perceived and the actual severity of the gang problem; describes factors that led to the onset and decline of the reaction to the perceived gang problem in Las Vegas; and discusses the events as they relate to the "threat" hypothesis and to the political and organizational response to youth gangs in other jurisdictions. Figure, tables, references