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Palms fined $1 million in drugs, prostitution settlement

Reported by: Sergio Avila
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Updated: 1/15/2013 10:51 am
LAS VEGAS (KSNV MyNews3) -- Gambling regulators proposed a $1 million fine for the Palms casino in Las Vegas because nightclub employees provided undercover agents with prostitutes and drugs, including cocaine and the prescription painkiller oxycodone.

The state Gaming Control Board detailed the transactions in a complaint filed Friday after agents conducted more than a dozen stings last March.

Among other offenses, the complaint says employees of the nightclub operators agreed to sell agents $18,000 worth of cocaine.

Palms spokesman Alex Acuna says in a statement the company is concerned and disappointed.

Acuna says the Palms has implemented mandatory drug testing, will soon set up a whistle-blower system and made changes in its security department to avoid future incidents.

The $1 million fine must be approved by the Nevada Gaming Commission.

The Palms will also pay $78,000 for investigation expenses.
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