HOB is leased, but MGM is still responsible
A sting operation at the House of Blues Foundation Room, located at Mandalay Bay in Las Vegas, revealed a pattern of illegal activity among hosts that has resulted in a half-million dollar fine for a subsidiary of MGM Resorts International.
Mandalay Corp., the subsidiary that runs the resorts, has agreed to pay a $500,000 fine to settle the five-count complaint, filed by the state Gaming Control Board. The owner will also pay $17,000 to reimburse law enforcement for investigative expenses.
Mandalay Corp. President and Chief Operating Officer Charles Bowling signed off on the agreement, according to the Las Vegas Review-Journal.
The Foundation Room is a New Orleans-themed restaurant and lounge operated by the House of Blues at Mandalay Bay. Though MGM is only the landlord, it is responsible by law for activities of the tenant.
Starting in the summer of 2012, undercover officers bought quantities of illegal drugs from a number of Foundation Room hosts. Over the course of the investigation, they bought cocaine and Ecstasy, and also were introduced to four women who said they were willing to have sex for money.
The Review-Journal reported that 10 House of Blues employees and at least five non-employees were involved in the activities, most of which occurred in public areas.
