I always assumed it was Las Vegas as I'm sure many have but the more I look at it the more I am starting to think it doesn't resemble Las Vegas whatsoever. If anything it seems like it resembles the Palm Desert of Southern California. You know, the cities of Palm Springs, Cathedral City, and Indio. Those don't have many casinos (at least I don't think they do) and neither does Lucky Palms if you don't have the Lucky Simoleon Casino, but even if you did have that. The Palm Desert still isn't without a major casino as it also has Morongo. I can't get any more Las Vegas vibes from this world since now it just feels more like this particular part of the world.
What were the actual inspirations behind the creation?
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Are there any Arizona or New Mexico references as well?
I didn't really recognize anything that specifically reminded me of Arizona or New Mexico, unless we consider what looks like the Colorado River on the border itself. The desert looks more like the Mojave than what you would find in the Sonoran desert and beyond. You find some joshua trees in western Arizona, but they are not that common.
Anyway, it's very plausible.