Palms Casino in Vegas Caught Up in Drug, Prostitution Sting

LAS VEGAS -- Gambling regulators are fining the Palms casino in Las Vegas $1 million after nightclub employees provided undercover agents with prostitutes and drugs, including cocaine and prescription painkillers.

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 nightclubs at the Palms Casino Resort agreed to sell agents $18,000 worth of cocaine.

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

Acuna says the Palms is implementing mandatory drug testing, 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.