The SanPedro, Los Angeles and Salt Lake Railroad, (later sold to and absorbed by the Union Pacific) auctioned off 1,200 lots adjoining the "railroad townsite of Las Vegas," on a single day leading to the official founding of Las Vegas on May 15, 1905. The area is in today's downtown Las Vegas, or what is called "Glitter Gulch". (For more about the location, size, etc of these lots visit History of Las Vegas' Block 16).
I believe the Glitter Gulch phrase - and correct me if I'm wrong - was the winning phrase in a contest run by local business interests. The winner was a high school girl who got $50 and a miniature model of a slot machine. But accounts vary - some sources say the area was being promoted as Glitter Gulch in the 1940's - another account dates the naming to 1953.
Essortment has a nice brief overview of Las Vegas, including the fact it was the last western state to OUTLAW gambling in the 1900's, then the first to legalize casino gambling in 1931.
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