February 7, 2013
Undercover drug and prostitution stings prompt new nightclub security measures
The Nevada Gaming Commission signed off Thursday on a $1 million fine against the Palms to settle compliant issued by the state’s Gaming Control Board resulting from an investigation that discovered rampant drug sales and prostitution at clubs on the property.
It’s the third-largest fine ever approved by the commission.
Under the deal, the Palms will also pay $78,000 to cover the cost of the control board’s investigation. The commission voted 4-0 to approve the fine, with Commissioner John Moran Jr. abstaining.
“We are very sorry to be appearing before you today,” George Maloof, minority owner of the Palms, told the commission. “We take these (charges) very seriously and have implemented many changes to prevent these issues from happening again.”
The violations contained in the 17-count complaint made public Jan. 11 were gathered during five undercover operations last year by board investigators and Las Vegas police.