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You're right. Like any other major city, prostitution is a thriving underground industry in Las Vegas, but it's not legal within the city or its circumscribing county (Clark). Prostitution is legal, however, in Pahrump (about 60 minutes west of the city), which is technically in the neighboring county of Nye, where brothels are big business. For an indepth look at the prostitution industry, check out Lora Shaner's Madam: Inside a Nevada Brothel.
How is Big Elvis doing and where is he performing now?