Like I said, the operative word is "tolerated".
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As of July 2004, brothels are illegal under county or municipal law in Carson City (which encompasses the entire county), Douglas County, and Lincoln County. Eureka County neither permits nor prohibits licensed brothels and does not have any. The other 11 counties permit licensed brothels in certain specified areas or cities
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The big casino towns of Reno and Las Vegas have worked to expand their tourism base by attracting families to the hotels and casinos. Accordingly, the state legislature has made prostitution illegal in both Clark and Washoe Counties and law enforcement agencies have tried to eliminate the once rampant street prostitution
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And that's just from skimming...