Hard Rock Hotel will pay $650,000 to settle complaint

The Hard Rock Hotel in Las Vegas has agreed to pay $650,000 to settle a complaint from state regulators that employees sold drugs and let patrons use private restrooms for sex and drugs.

The Nevada Gaming Control Board said the hotel agreed to pay the fine without admitting or denying the allegations. But in the settlement the hotel acknowledges regulators could have proved their case at a hearing.

The settlement, reached Wednesday, consists of a $500,000 fine and $150,000 to reimburse police and Nevada Gaming Control Board investigators for the cost of an undercover investigation.

According to the settlement, the Hard Rock took significant steps to correct the drug problem, including firing employees and hotel executives.

"Hard Rock Hotel & Casino takes this issue very seriously, and has cooperated fully with the Gaming Control Board," President and CEO Joseph Magliarditi said in a statement. "We have entered into a stipulation and made a number of proactive changes to address and resolve these matters. We remain committed to conducting our operations in accordance with all gaming regulatory requirements."

The hotel also tested "all of its security personnel, all of its nightlife personnel and vice presidents," the complaint noted. The results showed 97.5 percent were drug free.

The proposed settlement will be presented to the state Gaming Commission for final approval at either its January or February meeting.