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Liquor license rejections force Planet Hollywood clubs to close

Gaming Commission approves $500,000 fine against resort


Sun file photo

The Prive nightclub at Planet Hollywood.

Updated Thursday, July 23, 2009 | 5:44 p.m.

Map of Planet Hollywood Resort and Casino

Planet Hollywood Resort and Casino

3667 S. Las Vegas Blvd., Las Vegas

The Clark County Department of Business License has denied the liquor license applications for the Prive and Living Room clubs at Planet Hollywood, forcing the clubs to cease operations when their temporary licenses expire next week.

The license denial is the first in recent memory to involve a leased venue within a major casino and follows a Gaming Control Board complaint against Planet Hollywood for allowing illegal activities in Prive including drug use, prostitution, underage drinking and assault.

“The evidence of improper management oversight and disregard for the duties of the licensee is overwhelming and points to only one decision – denial of a liquor license," Clark County Business License Director Jacqueline Holloway said Thursday. "We expect consistent compliance and cooperation from our privileged licensees for the benefit of our citizens."

Today, the Nevada Gaming Commission unanimously approved a $500,000 fine against Planet Hollywood. The property, which admitted it knew or should have known about the violations, must pay an additional fine of $250,000 if the Gaming Control Board files a similar complaint against the property before July 31, 2011, based on events prior to July 31, 2010. Such a complaint could involve allegations against any nightclub venue, regardless of ownership or management, at Planet Hollywood.

The clubs had been operating under temporary liquor licenses, which effectively serve as the operations' business licenses, while Metro Police investigated the clubs. Prive's license expires July 28 and the Living Room's license expires July 30.

The county typically allows businesses to operate under temporary licenses while undergoing background checks. Metro had completed its investigation a couple of weeks ago and the county had been reviewing the results and awaiting the results of today's Gaming Commission vote.

The county's business license department previously issued three notices of violation against Prive for stalling agents who were conducting a compliance inspection, interfering with agents during the course of a routine inspection and for allowing "topless and lewd activity."

County code requires license holders to "maintain and conduct all activities upon the premises in a decent, orderly and respectful manner and shall not knowingly permit within or upon the licensed premises any lewd activity, nudity or topless activity ... Disorder, disturbances or other activities which endanger the health or safety of the patrons."

Club operators have 30 days to appeal the denial with the Clark County Commission, which meets Aug. 4.

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