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IRS Probe Into Vegas Casino Nightclubs To Expand

LAS VEGAS (CelebrityAccess MediaWire) — Broader investigations in Las Vegas may be in the offing after two nightclub were raided earlier this year during an investigation on unreported kickbacks paid by patrons to club security staff for preferential access to the venue.

While IRS agents have been silent in the wake of the two high profile raids on two of Las Vegas' hottest nightspots, Pure and LAX nightclubs, a number of observers have stated that it is likely the probe will expand to the casinos themselves. The clubs are not officially owned by the casino, but instead, merely operate on a part of the casino's property as an independent entity.

As reported in The Sun, the business deals are much broader than a mere lease of space. The two casinos, the Luxor which plays host to LAX and Caesar's Palace, which houses Pure, both enjoy significant revenue to the tune of tens of millions from the nightclubs and have a say in virtually every aspect of the club's operations.

While external observers consider it unlikely that the heavily-regulated casinos themselves are involved in schemes to conceal revenues from the IRS but suggested that "rogue" employees of the casinos would be a much more likely scenario..

"I would think there would be a good opportunity to push up the chain of command, depending on how the money is distributed," David Landrum Jr., a retired IRS criminal agent told the Sun "Proving whether the casinos are connected to those particular crimes is part of the IRS’ job."

While casinos in question have pledged to cooperate fully with any ongoing investigations, the IRS has announced that it intends to undertake a review of such club agreements at Casinos around the country. – CelebrityAccess Staff Writers