The recession wasn't the tipping point to make that economic transition and this won't be either. The truth is the people running the state and the city are just not that smart. Business is focused on one thing...the casinos did diversify years ago and, even though nothing helps in a situation like this, the "profit pie" looks much different now than 15 years ago with the addition of revenue streams for high-end dining and clubbing plus the resort and parking fees.
The rest of the state is saddled with an educational system that was #50 in the nation, healthcare in the bottom five for all states and a state government that is completely inept ranging from getting an unemployment check out to the DMV. Throw in a questionable police force and corruption in the visitors bureau and the state's infrastructure can barely function day-to-day let alone be pro-active.
There's no re-invention if we don't have any capable inventors.