Resort faces $0.5 million fine over club
Posted by Gavin Smith on 13 Jul 2009 at 16:07
Planet Hollywood Resort and Casino has said it will pay a $0.5 million dollar fine to gambling enforcement in Nevada over slack policing of unlawful activity at an independently-run nightclub at the resort.
The Associated Press (AP) reported that Planet Hollywood said it would pay another $250,000 in 12 months if the way the night club is run is not appropriately altered.
Planet Hollywood said it was at fault for problems inside the Prive club, which leases space in the resort. It is the first company to admit some responsibility for the actions of such clubs - which have recently been coming under the spotlight of regulators.
Quoted by AP, Frank Schreck, Planet Hollywood's lawyer, told the Las Vegas review-journal: "We didn't execute proper supervision and we're the message being sent to the rest of the industry,"
Nevada's gaming commission will now vote on the settlement on July 23.
According to AP, Gaming Control Board member Randy Sayre said: "Planet Hollywood took this matter seriously.
"Sadly, they should have addressed some of these events sooner."
The report also said Prive employees were accused of ejecting customers who were drunk and leaving them unattended in the casino, and of assaulting customers physically and sexually.
Other accusations levelled at the venue include admitting people who were under-age and giving jobs to people who had criminal records.
The gaming board also said that prostitution became more common around the club and that nothing was done to stamp it out.
AP also said Sayre added a number of other hotel casinos were being looked at regarding activities inside their clubs and other venues.
Changes already instigated between planet Hollywood and Prive include the fact Planet Hollywood security staff can now go into the nightclub without a club employee.
