Nevada gaming officials put in place sweeping new regulations for nightclubs this week, increasing their oversight of a crucial but sometimes risky component of business at Las Vegas casino-resorts.
Under the set of rules adopted by the Nevada Gaming Commission on Thursday, casino operators must make at least one employee in charge of monitoring their nightclubs and a broad set of club employees need to register in the same way as casino workers, among other requirements. The regulations were hashed out in previous workshops that included the Gaming Control Board members and industry representatives.
The registration requirement applies to “all supervisors, managers, security and surveillance personnel, servers, server assistants, bussers, restroom attendants” and anyone employed or contracted to offer hosting or VIP services, according to a draft of the regulations.
Security and safety requirements are included, too. The regulations say operators need to “regularly assess” their calendars to consider their impact on attendance and “determine and engage appropriate security personnel.” Clubs must also abide by certain requirements for emergency medical support, depending on the anticipated size of their events.
Other parts of the regulations deal with the registration of independent hosts and promoters, the written policies and procedures of nightclubs, regulators’ access to the clubs and “unsuitable methods of operation.” The rules also detail requirements for when operators must report suspected criminal activity.
By putting the nightclubs under stricter regulatory scrutiny, regulators hope to prevent repeats of what Commission Chairman Tony Alamo described as “very difficult complaints” regarding the venues in the past.
For example, in 2014, Mandalay Bay agreed to pay $500,000 to settle charges from the Gaming Control Board that undercover agents were provided with drugs and prostitutes at the House of Blues Foundation Room in 2012. And the Palms was hit with a $1 million fine in 2013 over drug and prostitution charges at clubs there.
Resort nightclubs have become a big draw for Las Vegas tourists, particularly the younger ones who are likely to spend more of their time on the Strip drinking, dancing and enjoying entertainment offerings than gambling. The casino industry is adapting to meet those tastes: More than 60 percent of the Strip resorts’ revenue last year came from nongambling departments, according to the UNLV Center for Gaming Research.
“These clubs are a shot in the arm for the industry. No doubt about it,” Alamo said. “But they need to be controlled and regulated.”
The commission also adopted new regulations Thursday for associated equipment — which includes various devices that affect gaming or casino operations — and sports wagering from “business entities.” The latter regulations allow groups of individuals to place bets at race and sports books if they meet certain requirements.