Hard Rock settles complaints over sex acts at club

Lisa Snedeker

Friday, July 26, 2002 | 11:10 a.m.

LAS VEGAS -- The Hard Rock hotel-casino paid a $100,000 fine to state gambling regulators Thursday to settle complaints, including public sex acts taking place in a nightclub.

Hard Rock President Don Marrandino told the Nevada Gaming Commission that action had been taken and the staff retrained to prevent future incidents.

"We want to make the Hard Rock a fun place within the rules," he said.

Commissioner Art Marshall wanted a stiffer fine to show that regulators are serious about preventing such behavior at other hotel-casinos that attract a similar clientele.

"A million dollar fine would have gotten everyone else's attention," he said. "If you want to be a licensee, we're not going to tolerate this behavior."

The commission voted to unanimously accept a settlement agreement that included corrective action and the fine.

State Gaming Control Board investigators have been investigating the Hard Rock for several months following complaints about risque behavior.

Investigators listed three counts of "inappropriate sexual conduct" by patrons at the hotel's Baby's nightclub, according to a July 12 gaming board complaint.

The complaint said surveillance tapes of Baby's revealed "overt sexual activity taking place in a seating area above the dance floor in a so-called 'private' booth visible to the public" -- a violation of state gambling regulations.

The "conduct occurred in the presence of security officers employed by the Hard Rock," the complaint said.

The complaint said public, inappropriate sexual conduct by patrons in the private booths was witnessed by board agents July 20, 2001, and recorded again by surveillance video July 22, 2001.

Also, surveillance cameras at the hotel were used inappropriately by staff. Cameras were turned on patrons "beyond the time necessary to reasonably determine whether illegal activities were occurring," inconsistent with normal surveillance protocol. Cameras also were inappropriately aimed at gambling board investigators.

The property also was cited for failure to make a timely application for approval of one of its officers. The company's director of finance James Brown did not file for licensing until June 20, 2001, though he had been elected as an officer in April 2000, the complaint said.

The complaint is part of a wider investigation of entertainment venues in Las Vegas, which appear to be creating risque environments to draw a younger audience, regulators said. Agents have not yet found problems at other properties.