Mandalay Bay to pay $500K in drug, prostitution sting

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LAS VEGAS • The Mandalay Bay Resort plans to pay a half-million-dollar fine amid accusations that employees at an upscale Las Vegas Strip lounge provided prostitutes and drugs to undercover officers.

A proposed settlement between the casino and the Nevada Gaming Control Board was filed this week. It's awaiting approval by the Nevada Gaming Commission.

Authorities say undercover officers bought cocaine from a host at the House of Blues Foundation Room in June 2012. Officials say employees also connected officers with four prostitutes, cocaine and a private room for sex during a visit in July, and helped an officer get Ecstasy in August.

Officials with Mandalay Bay parent company MGM Resorts say the employees involved in the activities have been fired, and the lounge has increased its training procedures to prevent future misconduct.