Hard Rock Casino settles with regulators in drug case

Posted on: December 31st, 2010 9:18 am | By: Jeremy Schrute

The Hard Rock really knows how to party! According to Nevada regulators, though, they are a little too eager to help customers party, even if it involves something illegal.

On Wednesday, the Hard Rock Hotel & Casino agreed to pay the Nevada Gaming Control Board $650,000 to settle a casino involving the supplying of drugs to casino customers. The settlement includes a $500,000 fine and $150,000 to pay for the cost of the investigation.

According to the complaint raised by state regulators, who have the power to strip the Hard Rock of their casino license, VIP hosts and security staff supplied drugs to undercover agents at the Body English nightclub, which is now closed, and the Vanity nightclub, which is located in the Vegas casino’s HRH Tower.

According to the complaint, undercover police offers and regulators were able to buy cocaine, marijuana and ecstasy and use the drugs in their bathroom. The VIP hosts and security staff, perhaps a little too accommodating, also let guests have sex in the nightclub bathrooms, which, though not illegal, violates gaming regulations.

By agreeing to the settlement, the Hard Rock Hotel & Casino avoided the case going to a regulatory hearing, where their license may have been in jeopardy. The casino did not admit guilt in the settlement, but says that they have fired all involved employees identified by regulators.

In addition, the casino stated that they have instituted a new program similar to secret shoppers, where people enter the premises like a normal customer to observe and report employee behavior. The casino ha also randomly drug tested all of their security personnel, nightlife personnel and vice presidents, with 97.5% passing.

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