THE DEFINITION OF CASINO GAMBLING AS AN ACCEPTABLE RECREATIONAL DIVERSION OR AN IMMORAL AND CORRUPTING ACTIVITY RAISES TWO ESSENTIAL QUESTIONS: (1) HOW TO LEGITIMIZE, CAPITALIZE, AND CONTROL AN INDUSTRY THAT MUCH OF AMERICAN SOCIETY CONSIDERS A VICE, AND (2) HOW AN OWNER OR GOVERNMENT AGENCY CAN CONTROL AN INDUSTRY THROUGH WHICH SO MUCH MONEY FLOWS. THESE QUESTIONS ARE ANSWERED BY TRACING THE RISE OF CASINO GAMBLING IN LAS VEGAS, NEV., WITH EMPHASIS ON SOME OF THE MAJOR PROBLEMS AND ISSUES FACED BY THE STATE AND CASINO OWNERS ALIKE: CHEATING AND SKIMMING, PROSTITUTION, ORGANIZED CRIME CONNECTIONS, LICENSING, COLLECTION OF TAX REVENUES, AND COMPULSIVE AND OBSESSIVE GAMBLING. THE CONTROL MECHANISMS AND PROCEDURES CODIFIED BY GAMING BOARDS AND CASINO OPERATORS ARE OUTLINED, BOTH IN TERMS OF THE CASINO-LEVEL REGULATION OF INDIVIDUAL GAMBLING FLOORS AND INDUSTRY-WIDE MEASURES TO PREVENT CORRUPTION, AUDIT CASINO MANAGEMENT, AND IDENTIFY AND PRECLUDE MANIPULATIONS AND HIDDEN INTEREST FACTORS ENCOURAGED BY SUCH HIGH FINANCE OPERATIONS. THE EXPLICIT AND IMPLICIT CODES OF CONDUCT THAT FORM THE BASIS FOR THE MORAL, SOCIAL, AND ADMINISTRATIVE REGULATION OF THE GAMBLING INDUSTRY IN THE U.S. ARE EXAMINED, ALONG WITH THE NEW JERSEY CASINO GAMBLING CONTROL ACT. THE AMERICAN SYSTEM OF CASINO CONTROL IS COMPARED WITH THE BRITISH SYSTEM, WHERE THE GOALS OF STATE CONTROL DIFFER SHARPLY. AN INDEX AND REFERENCE NOTES ARE INCLUDED. (KBL)