Regulator Says Las Vegas Casinos Responsible for Clubs and Pools

Las Vegas Strip casinos were warned by regulators to clean up the acts at pools and nightclubs, or face escalating fines.

A series of troubling incidents at nightclubs and swimming pools on the properties of Las Vegas casino resorts has led state regulators to affirm that gambling operators are responsible for whatever occurs on their property, even if the space is leased to tenants. Randall Sayre of the Nevada Gaming Control Board says the town runs on rules, and the regulators will not allow loopholes to prevent enforcement.

The Sapphire pool at the Rio Casino had been leased to a strip club to manage, with the expectation that topless strippers getting an afternoon tan before work would draw hotel clientele. But, in July, police raided the pool and arrested ten suspects for such charges as prostitution and drug usage.

The raids continued, as the Hard Rock Casino's pool club, Rehab, was hit over Labor Day weekend, resulting in another eight arrests.

And Planet Hollywood was fined a half-million dollars for a variety of offenses at the nightclub Prive, including reports of money laundering and sexual assaults.

Regulators decided to crack down as the out-of-control behavior spilled into casinos. The Planet Hollywood fine made it clear that no longer would the leasing of space be tolerated as permission to skirt gaming regulations.

Sayre told casino operators they would have to control conduct at clubs and pools, or face escalating fines and even potential closure.