The exclusive Las Vegas nightclubs generate hundreds of thousands of
dollars in revenue every month as the famous Las Vegas clubs attract more visitors than any other form of
entertainment in Sin City. Unfortunately some of these unique clubs are
also becoming a headache for the Las
Vegas operators. Not long ago, the I.R.S intervened
two of the biggest and most fashionable clubs on the Strip, Pure at Caesars
Palace Las Vegas and LAX at the Luxor Hotel and Casino. Then, the Internal
Revenue Service confiscated several computers, paperwork and interviewed
several employees in an effort to gather evidence against the clubs’ employees
and managers for tax evasion and other illegal practices. The investigation
then demonstrated that some Las Vegas clubs employees were asking tips from customers
to let them get inside the clubs, and that no tips have been reported to the IRS as an
income. However, several gaming and business authorities have said that the
I.R.S acted abusively and that there was no reason to raid the clubs.
State Gaming Control Board
Chairman Dennis Neilander said his agency closely followed the IRS
investigation and is prepared to take legal actions over supposed violations. Several
Las Vegas
hotel and casino operators have also expressed that they are running internal investigations
on the employees’ tip practices at the nightclubs operating at their establishments.
The IRS and the companies involved are refusing to reveal what type of actions
they would take; however, Pure Management released a statement in where they
say that they are “fully cooperating” and they are looking for a “quick and
satisfactory resolution.”
A huge percentage of the
customers visiting the Las Vegas nightclubs such as Pure and LAX have to make
big lines and wait for long periods of time just to get in, and paying the
doorman a few bucks have become a habitual practice among partygoers. But it
doesn’t stop there, many people also have to pay to simply get a table or pay
an extra for services usually covered by the club’s charge. The Las Vegas nightclubs have become substantial for many Las Vegas hotels and casinos as some clubs operators can make from $10 to $50 million in revenue every year,
making them an attractive target for the I.R.S authorities.
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