Palms casino in Vegas faces $1M fine in drug sting

Palms casino in Las Vegas faces $1M fine; undercover agents provided with prostitutes, drugs

http://news.yahoo.com/palms-casino-vegas-faces-1m-233045741.html

LAS VEGAS (AP) -- The company that owns the Palms Casino Resort said Friday it will pay $1 million in fines after employees of casino nightclubs accepted payments to supply prostitutes, cocaine and pain pills in a series of stings last year.

The Nevada Gaming Control Board detailed the shady dealings in a complaint filed Friday, and the owner of the Palms, FP Holdings LP, said it would to pay the penalty for failing to prevent the illegal transactions.

Among other offenses, the complaint said employees of NM Ventures LLC and NM Ventures II LLC, which operates the nightclubs, offered to sell undercover agents ecstasy, the prescription painkiller oxycodone, and $18,000 worth of cocaine last March.

In one sting, a bottle runner at Rain nightclub agreed to track down prostitutes for a patron. After failing to find the women, the runner reached into a front pocket and produced $100 of cocaine for the undercover agent.

A Moon nightclub host responded to an undercover agent who asked for "party favors" by offering up "$100 of blow."

The commission worked with Metro Police on the stings. Police held off on making arrests during the operation, but some are now imminent, according to Lt. Dave Logue of the department's criminal intelligence section.

Authorities said they targeted the Palms because they suspected its nightclubs. The last comparable operation took place at the Hard Rock Hotel & Casino three years ago, Logue said.

Casino bosses were "concerned and disappointed" to learn of the activities apparently rampant at their nightclubs, Palms spokesman Alex Acuna said in a statement.

"We are resolved to address these problems comprehensively and decisively," he said.

At the time of the sting, the subsidiaries that ran the nightclubs were only partially owned by the Palms. "They're now fully owned (subsidiaries) so we have a lot more oversight and visibility into the organization," Acuna told The Associated Press.

He said the Palms is also implementing mandatory drug testing, setting up a whistle-blower system and making changes in its security department to discourage employees from straying outside the law to meet customers' requests.

The casino just west of the Las Vegas Strip is also installing "amnesty boxes" at club entrances, where patrons can dump drugs before entering the casino without fear of legal repercussions.

The $1 million fine must be approved by the Nevada Gaming Commission. The Palms has also agreed to pay $78,000 for investigation expenses.

On the bright side, one could say that they really do go all out to keep their customers happy. lol

The casino just west of the Las Vegas Strip is also installing "amnesty boxes" at club entrances, where patrons can dump drugs before entering the casino without fear of legal repercussions.


Probably some local dealers (pun intended) would volunteer to empty the amnesty boxes. :)

Quote: EdgeLooker

Casino bosses were "concerned and disappointed" to learn of the activities apparently rampant at their nightclubs,
.

LOL, sure they were..

yeah, lol.

Guaranteed there will be some funny comments over at yahoo on this.

"So they're going to forfeit 5 hours of revenue as a punishment? That'll teach the crooked sunsabitches."

"Who has ever heard of someone dumping drugs that they paid for? Now that's funny."

"Somebody forgot to pay someone off..."

"They should have paid for "protection" like the other casinos do. It would have been cheaper."

What a ridiculous non-story. I assume this goes on multiple times per night at every casino on the strip. It's part of the Vegas Experience for high-rollers who tip well to get what they want. Who cares? Why is this a story NOW?

Next up, "Stallone caught with steroids in his locker!" oooohhhhhh! or "Housecats caught looking out window!"

I remember a couple years ago when Bruno Mars was caught doing coke in the Hard Rock bathroom and wondered just how mouthy he must've gotten with security for him to actually be busted doing something that, hell, everyone does in the bathroom, but the rest of us manage to hide it discreetly. But he got arrested, and he's a celebrity. What a moron.

No wonder the tables were crappy the other day; they're trying to make the money back up!

I'd say the Palms is providing excellent customer service. Well Done.

When things get too blatant the Gaming Board steps in with either speeches or enforcement stings that make headlines.

When did it become a crime to have drugs and whores in Vegas???

Quote: FleaStiff

When things get too blatant the Gaming Board steps in with either speeches or enforcement stings that make headlines.

"Mission
The Nevada Gaming Commission and the State Gaming Control Board govern Nevada's gaming industry through strict regulation of all persons, locations, practices, associations and related activities. We protect the integrity and stability of the industry through our investigative and licensing practices, and we enforce laws and regulations, while holding gaming licensees to high standards. Through these practices, we are able to ensure the proper collection of taxes and fees that are an essential source of revenue for Nevada. . . ..

We act with a high degree of integrity, honesty and respect in carrying out our duties and in our interactions with our stakeholders. . . .
We are committed to protecting the confidentiality of all information entrusted to us by applicants, licensees and other stakeholders.
Our objectivity, independence and impartiality are beyond reproach. We avoid all personal or professional circumstances or conflicts that would call these into question.
Our processes ensure that actions, decisions and policies are consistently applied and do not result in advantages or disadvantages to any party to the detriment of another.
Our investigations, audits and tests, while comprehensive, are objective and fair-minded. Written reports of such actions are made with a high degree of care with special attention to accuracy.
We carry out our duties in a rigorous and thorough manner and utilize the resources provided to us wisely and only for the legitimate purposes of the agency."

As it seems that not even a single person was reported arrested or otherwise sanctioned, $1 million can sure take care of everything. Pretty damn reasonable.

Quote: MakingBook

When did it become a crime to have drugs and whores in Vegas???

These Palms' hosts and employees were dealing drugs and pimping.

Quote: Paigowdan

These Palms' hosts and employees were dealing drugs and pimping.

How interesting Las Vegas is.

At least they are enforcing against a drug that is known to have killed someone at least once.

Quote: Paigowdan

These Palms' hosts and employees were dealing drugs and pimping.

Yeah, I get that; but I still do not see the problem?

Don't all hosts and employees supply drugs and whores? If not, just what the hell do they do all day?

Quote: Paigowdan

These Palms' hosts and employees were dealing drugs and pimping.

Why not sweep up the hoards of porn slappers on the strip? Not only are they mostly illegals, but they're also pimping in plain sight...

Quote: MakingBook

When did it become a crime to have drugs and whores in Vegas???

When the state made gambling taxes the major source of revenue and did not do anything to tax drugs or whores.

Quote: MakingBook

When did it become a crime to have drugs and whores in Vegas???

When the state made gambling taxes the major source of revenue and did not do anything to tax drugs or whores.

Exactly, if the state taxed both drugs and prostitution, they both would be safer. The gov't would make Billions in tax revenue. Not to mention the crime aspect of these industries would be eliminated. Don't think so...see "prohibition"... So no more drug related drive-bys. Let's face facts, people are going to do drugs and engage the services of prostitutes. Morality aside...it makes a lot more sense to regulate these industries than laughably try to enforce impossible to enforce regulations.

And there's still people who believe the video poker and video keno machines are not altered at all by casino management for fear of their doors being locked by the Nevada Gaming Commission? What a joke.

Quote: iluvdisco33

And there's still people who believe the video poker and video keno machines are not altered at all by casino management for fear of their doors being locked by the Nevada Gaming Commission? What a joke.

Well, there is a BIG difference between losing $1MM and losing the ability to continue operating at all.

Since when is it legal for a casino to host "amnesty boxes"??

Quote: FleaStiff

When the state made gambling taxes the major source of revenue and did not do anything to tax drugs or whores.

I would like to add something to that answer, but it is so damn perfect already !

>>When the state made gambling taxes the major source of revenue and did not do anything to tax drugs or whores.
>I would like to add something to that answer, but it is so damn perfect already !
Well, thank you. Back in the thirties(?) when Nevada was gearing up for legalized gambling casinos had peanuts, sawdust, craps tables and undoubtedly a great many men saw no need to trek to Pahrump for female companionship. I doubt gambling would have grown in such a spectacular manner if prostitution had been under strict regulation as well. This was before unions were powerful and before teachers unions even existed. There were no claimants to tax funds other than gambling. A one industry state with all state revenue clearly comimg from gaming meant that prostitution had to be officially discouraged but its clear that it has always been a part of the Vegas experience. Hotel operators know that and Gaming board members know it.

>>When the state made gambling taxes the major source of revenue and did not do anything to tax drugs or whores.
>I would like to add something to that answer, but it is so damn perfect already !
Well, thank you. Back in the thirties(?) when Nevada was gearing up for legalized gambling casinos had peanuts, sawdust, craps tables and undoubtedly a great many men saw no need to trek to Pahrump for female companionship. I doubt gambling would have grown in such a spectacular manner if prostitution had been under strict regulation as well. This was before unions were powerful and before teachers unions even existed. There were no claimants to tax funds other than gambling. A one industry state with all state revenue clearly comimg from gaming meant that prostitution had to be officially discouraged but its clear that it has always been a part of the Vegas experience. Hotel operators know that and Gaming board members know it.

Quote: vendman1

Exactly, if the state taxed both drugs and prostitution, they both would be safer.

I was under the impression that prostitution was somehow taxed, or at least heavily regulated (outside of Clark County).

As am I. Outside of Clark County, Prostitution was taxed and regulated. When did THAT change, and cite the regs.

Quote: rdw4potus

Well, there is a BIG difference between losing $1MM and losing the ability to continue operating at all.

That's the point. No matter how egregious the violation, the Gaming Commission will NEVER shut down any casino anywhere near the size of the Palms or bigger, because of any violations. Period.

Quote: 98Clubs

As am I. Outside of Clark County, Prostitution was taxed and regulated. When did THAT change, and cite the regs.

That's like selling beer in Reno, but only allowing beer parties in Vegas, where they won't sell beer.

(or something, but anyway, driving outside of Vegas for legal prostitutes is kind of crazy)

...Or perhaps, legal prostitutes would degrade the family friendly atomosphere of Vegas. The family friendly atomosphere of gambling the family finances away at the craps table while gettin' your free drinks and tarring up your lungs with chain smoking.

(i should be in advertising)

Quote: rxwine

That's like selling beer in Reno, but only allowing beer parties in Vegas, where they won't sell beer.

(or something, but anyway, driving outside of Vegas for legal prostitutes is kind of crazy)

Which is why the brothels will send a ride for you.

+1 GH, and yes, they most certainly do.

Anyone make the leap the Maloof brothers are being targeted? I know in Cleveland, the city totally screwed their ownership of a building the Horseshoe wanted by declaring the building condemned and demolishing it by declaring it an emergency. It's just a really fishy story just like this one.
http://www.cleveland.com/business/index.ssf/2012/12/stanley_block_building_in_down.html