Print
E-mail
Share
digg
Newsvine
Facebook
Stumble
Technorati
reddit
Fark
twitterDaily Memo: Gaming:
Big fine establishes hard line on nightclubs
Regulators take a tougher stance against Planet Hollywood than in past
Sun file photo
The Prive nightclub at Planet Hollywood.
Monday, July 27, 2009 | 2 a.m.
Sun Archives
Sun Coverage
Beyond the Sun
Map of Planet Hollywood Resort and Casino
Planet Hollywood Resort and Casino
3667 S. Las Vegas Blvd., Las Vegas
When posh nightclubs became a big profit center for casinos a few years ago, many wondered how far gaming regulators would go to police activity inside the clubs — where a combustible mix of free-flowing booze and scantily clad patrons and employees create potential, even inevitable, problems.
Regulators have a broad mandate to impose fines and revoke the licenses of casinos whose activities are “inimical to the public health, safety, morals, good order and general welfare” or bring “discredit” to the state or gaming industry.
The July 9 Gaming Control Board complaint against Planet Hollywood answers that question.
It must pay a $500,000 fine to settle claims that it knew or should have known about illegal acts — prostitution, drug use, underage drinking and assault — in the Prive nightclub. After the casino admitted to the acts as part of the settlement, the county denied the club a permanent liquor license, forcing it to shut down last week.
Regulators had encouraged compliance with warning letters. One sent by the Control Board in April stated that casinos are responsible for the activities in their leased venues and warned of disciplinary action. In the case of Planet Hollywood, warnings didn’t help.
Regulators have taken a laissez-faire approach to industry-shifting financial moves affecting thousands of Nevadans, including billions in debt accumulated to take companies private, mergers that consolidated power in two Strip companies and controversial tip-pooling practices.
Regulators must act when confronted with illegal activities. And yet, they have been reluctant to revoke licenses for anything but mob-like chicanery, such as refusing to obtain a license or rigging games.
Former regulators say sex and drugs aren’t sins on the level of cheating the state or gambling patrons, which go to the heart of regulators’ role: Protecting the integrity of the gambling enterprise.
After the Nevada Gaming Commission voted to approve the penalty against Planet Hollywood on Thursday, Chairman Peter Bernhard said it’s difficult to make generalizations about the panel’s decisions.
“It’s a process of progressive discipline,” he said. “We see if there’s repeated conduct and whether it gets corrected.”
That may explain the Control Board fine of $50,000 against Snick’s Place, a downtown slot bar that agreed to pay the fine in March for allowing sex acts. Regulators also suspended the bar’s gaming license for six months.
According to the Snick’s complaint, on one occasion a bartender helped disrobe a customer, who then crawled over to another naked customer to engage in a sex act.
Bernhard said that when levying fines, regulators take into consideration the size of the business. Planet Hollywood’s fine would have put a small bar like Snick’s out of business, he said.
Most commissioners said the Planet Hollywood fine was significant enough to force corrective action and get the attention of other casinos with nightclubs.
High-energy clubs are good for tourism but Planet Hollywood crossed the line when it “sacrificed” the health and safety of its customers, commission member Dr. Tony Alamo said before casting his vote Thursday.
Commission member John Moran Jr. suggested that fines of this sort should be “significantly higher” now that casinos are on notice.
(Under previous ownership, the Hard Rock Hotel in 2002 agreed to pay $100,000 for allowing nightclub patrons to have sex in “private” booths visible from the dance floor.)
Tame bars and clubs are bad for business. That’s why some casinos have taken a relatively hands-off approach to their nightclubs, compared with the heavy surveillance in gambling and retail areas.
Whether operators test regulators’ resolve is yet to be seen.
If the county doesn’t shut down their clubs, casinos likely will emerge with gaming licenses intact — though significantly poorer at a time when money is tight.
Discussion: 29 comments so far…
Post a comment
- Most Read
- Discussed
- Most E-mailed
- Wonder drug for men no success story
- CityCenter: One man’s concept of a real city
- Man, 18, arrested for DUI in crash that kills woman, 24
- Notebook: UNLV prospect Polee likes what he sees, and hears, at the Mack
- Man fatally shot during robbery attempt of woman
- Bellfield tolls again for UNLV in 76-71 win over Louisville
- Pitino doesn’t consider loss to UNLV a total loss
- Palin has a way of bringing out the anger in people
- The ball’s in Reid’s court: Passing the public option
- Binion’s to close all 365 rooms, lay off 100 workers
Blogs
The Kats Report
Planet Hollywood's Thomas McCartney headed for Tropicana (1 Comment)
Elsewhere
LV woman robs Kentucky strip club, police say (1 Comment)
Las Vegas Sands' Hong Kong IPO flops
The Kats Report
Monday List: Top 13 Moments and Observations From Thanksgiving Weekend (2 Comments)
Politics: Ralston's Flash
Tarkanian: Reid is liberal, out of touch, rude, poisonously partisan and a know-it-all (5 Comments)
The Kats Report
Barry Manilow off to Paris: Two-year deal starts March 5 at Le Theatre des Arts (9 Comments)
Politics: Ralston's Flash
Ensign survives radio interview with no follow-ups; partial transcript below (3 Comments)
Calendar »
- 30 Mon
- 1 Tue
- 2 Wed
- 3 Thu
- 4 Fri
-
DJ showdown at Prive
Prive | 10 p.m. to 11:59 p.m.
-
Rok Box with Mike Carbonell at Tabu
Tabú Ultralounge | 10 p.m. to 11:59 p.m.
-
DJ Riz at Jet
Jet | 10 p.m. to 11:59 p.m.
-
Football specials at Diablo's
Diablos Cantina
The Sun
Locally owned and independent for more than 50 years.
The clubs in Vegas are amongst the worse in the country. You basically get violated (including the bill) every which way when you visit them.
Hey, and what's the worst of it all, AND BELIEVE ME, THIS IS THE WORST, that's the entering ceremony. They line up the people in a way that they must start believing they'll enter heaven. Long lines that keep the crows in front of the door for hours sometimes increase the imagination that a club is something special. Ridiculous. Special is just the pricing and the way they run these facilities. I would never enter such a club under such conditions.
Snick's should have lost their gaming license forever! Casino Executive Management must be held accountable for the activities taking place in these nightclubs...they cannot and must not abdicate their responsibility. It should be embarrasing that the Gaming Commission has to step in to do the work of casino management, casino security, and casino internal audit / compliance. Pure Management should be next, based on the IRS activity of last year...results should be coming soon. But really...why should this be allowed and tolerated...the strip clubs, who catch bad press, do not allow sex, drugs, and prostitution. Suspend a casino executive's gaming license for a year, and you will see the other casinos fall in line real fast! This proves Nevada is a one industry state.
"The clubs in Vegas are amongst the worse in the country. You basically get violated (including the bill) every which way when you visit them."
"What happens in Vegas. Stays in Vegas" ....especially your money.
Free-flowing booze and scantily clad patrons??? Sounds like an Ensign party.
Based on the comments above, I must conclude I no longer live in Las Vegas.
The Libertarian character of Las Vegas is being stripped away little by little while we sleep, until one day when we wake up, Las Vegas will resemble nothing more than Irvine with casinos.
Nightclubs exist for one primary reason: As a sexually charged socializing environment. And in that regard, Las Vegas nightclubs are par for the course.
The Gaming Control Board simply has no business enforcing any kind of slippery "moral clause." Who would have ever thought "Dirty Dancing" could one day be filmed here? The mind simply boggles.
This kind of thing goes on in all LV Nightclubs. Was this just a way to thin out the herd? And you thought taking their license and with it your Club away could never happen in the USA! Who's next? Pure? LAX? Put up 30-100 million and risk it all now!
Most of the behavior of the young people visiting here is terrible. Yeah, it's Vegas and it's fun to party and drink and dance - but PLEASE have some class. And girls - don't walk around with your private parts hanging out OR be so drunk you can barely stand up!! Young people today have too much money and do not know how to act in public. We did some wild things when we were that age, too (and yes, it WAS drugs, sex and rock n roll), but compared to today's kids, we at least had some amount of maturity.
It was not too long ago when it was broadcasted everywhere that so and so was having their 18th birthday bash at pure or so nad so had their 20th birthday at jet. All underage teenagers. what do you really think they were served....diet pepsi? underage drinking is rampant in vegas' club
katie.... yeah right.
So Katie and others - are you sure that your parents thought you were so mature? Every generation points to the sins of the young. I tend to be very liberal and in terms of personal behavior I think that there should be freedom among consenting persons. It is, however, in the public's best interest to have some standards of modesty in public and to allow each person to be safe in public. They can also stay home!
James,
Vegas is not "Irvine with casinos".
Vegas is LA on Mars.
What's this about private parts hanging out? If my private parts get out it will have nothing to do with hanging!
This attack of Prive is so transparent. A more powerful competitor (starts with an L), put a little extra in the Crown Royal bag this month with a request, and next thing you know Prive is no longer.
It used to be just stand-alones like an ICE who risked being shut-down, now all the rules are off and these sharks are going after any and all competitors. Prive was killing it, can't have that.
Once again Liz Benston of the Sun does not dig beneath the cover story for the real story.
It should be known that Planet Hollywood does not own or operate Prive as it would seem in the way the Ms. Benston had written this article. As with most clubs in casinos it is a leased outlet.
Perhaps Ms. Benston should check all the facts before posting an article.
These clubs need to be burned badly with fines and stringently regulated. The party is over and the regulatory agencies and states need the money from these fines. Shame on them for looking the other way until now.
I've been here 13 years. This nightclub thing is just a phase. Something new and different will come along. Especially with people watching their pennies nowadays.
Personally, if I want a bottle of Absolut and some music, I'll just go to Albertsons and hook the Ipod up to my speakers.
Priceless.
Bottom line is safety for the patrons and keeping people who run these places on thier toes
viva las vegas!
Ps
stop the violence!
I was in Vegas two weeks ago and got kicked out of Rok Vegas due to "Dirty Dancing" with my wife. I am one of the customers the industry needs to survive, but after my pre-booked Halloween trip I will not be back.
The industry and the gaming board need to get a life, this place is not "Virtue City" it's "Sin City" or should I call it Cin-derella City?
The Gaming Control Board simply has no business enforcing morals of nightclubs.
Going into these clubs is a choice, if you do not like what's going on, go elsewhere. Just stop enforcing you high and mighty morals on everyone. This is still "America" at least for now.
Unk, that is exactly it and it's so transparent, I cannot believe the writer is not digging deeper.
Prive is owned by a Miami based group. I believe Prive is their only Vegas club (along with LR at PH), although I could be wrong. Prive is very popular, thus taking business away from clubs owned by two huge, local groups. One of these groups is/was under investigation already for vip staff/bouncers ripping people off...but magically that whole story has disappeared. Imagine that. This was the investigation that was supposed to take down the entire nightclub industry...where did it go? And now Prive gets shut down for violations of far less significance?
Hmmmmmmmmmmmmmmmm.
Prive simply didn't have enough juice to 'play ball' with the two local big boys.
There talking about Light Group for those of you that don't know.
What in the world is so special about standing in line for hours for the right to get into one of these places? You walk into a casino and they are lined up by the hundreds to pay exhorbitant prices in an overcrowded place, just so they can tell their friends back home that they "got in". Then they can buy a $20 bottle of wine for hundreds of dollars. We enjoy Toby Keith's at Harrah's, but the wait is reasonable, they serve dinner at a fair price and the entertainment is great! Who needs the "trendy" clubs anyway. That being said, If it's your thing, have a great time!
If it's "your" thing, you don't wait in line. That's what tourists do. And it's probably why they get all crazy inside. All that pent up energy.
Yes Jerry, but tourist dollars pay the majority of the bills for the Casinos that house the clubs and tourists are no longer going to pay these crazy cover charges. The clubs will be dropping them over time if they wish to survive.
What ever happened to freedom in Las Vegas. Between the county commission requiring that you seek their permission to do ANY business from them (after you have arranged your space and spent all the money to get to the point of an inspection), and the gaming commission getting upset over toplessness in the clubs where gaming DOESNT go on....
Definitely NOT a place to do business now. Literally you do your business investment and then the county and gaming commission tells you AFTER THE FACT that your business has to stop.
I, for one, would never start a business here that involved any investment, I can assure you of that.
I paid $20.00 to go into Light before it was The Bank at Bellagio, and after I was in there I thought wondered what the big deal was. I don't drink, but I thought if they make you pay it must be something special, and it wasn't.
The last time I was in Las Vegas and went to see "O" with friends we were going to have a cocktail at "Light" but decided not to spend over one hundred dollars for the four of us to have ONE drink there. That is just insane....and I am not a cheap person. you'd think they had the Crown Jewels on display!
and I've paid much less to see The Crown Jewels!