The Palms Fined $1 Million for Drugs, Prostitutes

The Palms faces a $1 million fine after undercover officers found easy access to cocaine and other illegal drugs, prostitutes and even hidden spots to do drugs during a three-month undercover sting. Thirteen nightclub hosts, security guards and bottle runners were all offering sex and drugs to the undercover officers, which were detailed in a 17-count complaint filed with the Gaming Control Board that involved Moon Nightclub, Ghostbar, the now-closed Rain Nightclub and Ditch Fridays pool parties.

The Palms will pay the fines as well as reimburse the state $78,000 in investigation fees and promised to overhaul its security staff and club operations.

Among the most titillating of complaints, undercover officers asked a VIP host at Moon Nightclub for some girls to party with "because they wanted to get laid" and price didn't matter. The host provided two girls and later asked if the undercover officer was happy with the girls because he could provide different ones.

Another incident at Rain Nightclub involved a bottle runner who provided 5.1 grams of cocaine to an undercover officer. He even offered to provide a pound of cocaine for $18,000.

Find the entire complaint Download file">here.

Reports note that the incidents in the complaint took place before the Palms took over ownership of the N9NE Group, which manages nightlife, restaurants and the pools at the casino in September.

Palms officials outlined a plan to prevent future infractions, that includes drug testing for employees, new security officers, an employee whistleblower hotline and "mystery shopper" services and "amnesty boxes" at club entrances that enable patrons to "dispose of any contraband without fear of reprisal prior to entering the clubs and the contents are then disposed by Metro (Police)." The game plan should be in place by the end of January.

No word on whether any of the 13 individuals involved will face criminal charges.

Two years ago, the Hard Rock Hotel paid $650,000 when undercover officers found similar problems.
· The Palms Agrees to Pay $1 Million to Settle Drug, Prostitution Charges [VI]