Nevada Increases Nightclubs Oversight

Nevada nightclubs that are located inside casinos no longer will be treated as wholly separate entities by state regulators, and the casinos that house them are more responsible for ensuring no illegal activity occurs inside them, under new regulations approved by the Nevada Gaming Commission in November. The commission new requires casinos to designate employees to oversee nightclubs and ensure compliance.

Nevada casino operators will be more accountable for what occurs inside the nightclubs that do business inside them.

The Nevada Gaming Commission in November approved stricter regulations for casino nightclubs, which now must have a designated casino official in charge of monitoring and overseeing nightclub operations to ensure compliance with state laws and reduce or eliminate illicit activity.

The new regulations also require independent promoters and nightclub hosts to register with the Nevada Gaming Control Board and file written agreements for professional conduct.

The new regulations also require increased reporting of illegal conduct at nightclubs, including sexual assaults and drug trafficking. The aim is to reduce instances of illegal activity and help to ensure the integrity of casinos.

Virtually all casino nightclubs in Las Vegas are owned and operated by separate entities, many of which hire independent contractors to fill seats and bring in high rollers for VIP services.

But many nightclubs have closed after complaints of illegal activities, including drug trafficking, prostitution, and sexual activity, and state gaming regulators are making casinos more liable for putting a stop to it.