Hard Rock Vegas pays US$650,000 to settle drug, prostitution allegations

LAS VEGAS Hard Rock Hotel & Casino has agreed to pay US$650,000 to settle allegations that resort employees sold drugs and facilitated illicit sex. The Morgans Hotel Group property paid the fines without admitting guilt.

Nevada gaming regulators accused hotel security guards and VIP hosts of selling cocaine and ecstasy to guests and letting them use private nightclub bathrooms to engage in sex acts. According to the complaint, state and local vice agents visited the resort’s Vanity and Body English nightclubs on seven occasions, purchasing drugs and being promised “anything” they desired.

Joseph Magliarditi, CEO of the property, says steps have been taken to address the issues. “We remain committed to conducting our operations in accordance with all gaming regulatory requirements,” he says. All employees named in the complaint have been fired and the resort has instituted random drug testing for all workers. Additionally, the resort’s nightclub operations have been outsourced to Angel Management Group.

The resort has paid a US$500,000 fine, plus US$75,000 each to the Gaming Control Board and Metro Police to reimburse the costs of the investigation.