Do you think what happens in Las Vegas, stays there? Think again.
Planet Hollywood Resort & Casino in Las Vegas found themselves in hot water with Nevada gaming officials this week over illegal activity that has been taking place outside a nightclub. The club is privately owned and leased from Planet Hollywood, but the resort is being hit with a large fine nonetheless. 
The club is accused of hiring employees with criminal records, allowing minors inside the club and permitting underage drinking, drug use, taking dangerously drunk customers and dropping them off unattended in the casino. Physical and sexual assault by nightclub employees has also taken place at the club, according to officials.
Apparently, the level of prostitution increased around the club and no one did anything to discourage or change the situation, according to Gaming Control Board officials.
Planet Hollywood, as a result, has agreed to pay $500,000 to Nevada gambling regulators for failing to police and control problems at the Prive nightclub inside of Planet Hollywood. They have also agreed to pay out an additional $250,000 in a year’s time if changes are not made in the operation of the nightclub. The Nevada Gaming Commission must still vote on whether or not to approve the fines.
Planet Hollywood is the first Las Vegas resort to ever acknowledge it was at fault for problems inside a nightclub that it doesn’t own.
The trendy resort is now being used as an example by regulators for the rest of the gaming industry. Hopefully, the sanction will send a strong message up and down the Las Vegas Strip for casinos to exercise stronger control over their party venues, even those operated by outside vendors.
The fine is large, even by gaming industry standards, but Planet Hollywood feels the penalty fits the crime.
“We didn’t execute proper supervision and we’re the message being sent to the rest of the industry,” said Planet Hollywood’s lawyer, Frank Schreck
Meanwhile, the current property lease between Planet Hollywood and Prive has had to be changed and rewritten and the Planet Hollywood security officers can now enter the nightclub without being accompanied by a club employee. This is done in an aim to reduce illegal activities in their own property.
Jacqueline Hollaway, Director of Business License for Clark County, released a statement that reads in part:
“…Privè has been operating on a limited license, which expires July 28. We are evaluating whether to extend that license or not. If there is no extension, Privè will be forced to close its doors since it cannot legally operate without a business license…”
Planet Hollywood’s fine is large but is not the largest issued by the Gaming Control Board. In 2003 MGM Mirage was fined $5 million for a problem with currency transaction reporting. In 1988 Imperial Palace was fined $1 million for building a private suite celebrating Hitler.
Now, the added kicker: Many other Las Vegas hotel-casinos are also now under active investigation over the activities happening inside their nightclubs and other entertainment venues.
Perhaps it is best to take some checkers and other board games with you when traveling to Las Vegas- just in case.
continuing to be hammered by a sour economy, Herbst Gaming has filed a prepackaged Chapter 11 bankruptcy reorganization plan that will result in the company losing ownership of its casinos but retaining control of its Nevada slot machine route. 
Vegas Backstage Access (VBA) 