Casino to pay $300,000
fine
The Hard Rock hotel-casino in Las Vegas agreed Wednesday to pay a
$300,000 fine -- the maximum permitted by law -- to settle a state
Gaming Control Board complaint over its edgy advertising campaigns.
(PRWEB) April 25, 2004--Edgy ads prompted Gaming Board complaint
The Hard Rock hotel-casino in Las Vegas agreed Wednesday to pay a
$300,000 fine -- the maximum permitted by law -- to settle a state
Gaming Control Board complaint over its edgy advertising campaigns.
The settlement addresses inferences of the Hard Rock condoning cheating
at gambling and illegal drug use and not the sexual content of the
advertisements that raised the ire of community activists who packed
a Nevada Gaming Commission hearing in March.
The settlement also directed the Hard Rock to pay closer attention
to an in-house compliance committee to review "questionable elements"
in its promotional materials. By agreeing to the settlement, the Hard
Rock waives its right to a public hearing on the complaint.
The five-page settlement document, signed by Kevin Kelley, chief
executive officer of the Hard Rock, and representatives of the Gaming
Control Board, said the Hard Rock's efforts to present a satirical
message went too far.
"The Hard Rock had a subjective belief that the advertisement
described ... was satirical in nature and never acted intentionally
to promote or encourage cheating at gambling through that advertisement,"
the settlement said. "However, the Hard Rock now understands
and agrees that as a gaming licensee, there are some subjects such
as condoning cheating at gambling that are not suitable for its commercial
expression."
The settlement document had a similar statement related to the promotion
or encouragement of the abuse of drugs or any other illegal activity.
Kelley was not available for comment today.
The two ads addressed in the settlement were noted in the initial
Gaming Control Board complaint, filed in January. One ad shows a man
and a woman on a gaming table, surrounded by playing cards and poker
chips, with the caption, "There's always a temptation to cheat."
The other ad reads, "At the Hard Rock Hotel, we believe in your
Monday night rights: large quantities of prescription stimulants (and)
having wives in two states ... Tell your wives you are going; if they
are hot, bring them along."
The settlement's directive on the Hard Rock Compliance Committee
is broad in scope, warning the company to be wary of producing ads
that could be offensive, but it doesn't explicitly say that the company
had to quit producing suggestive ads. It warned that the company --
not the compliance committee -- is ultimately responsible for public
ad content.
" ... Tdvertisement," the settlement said. "However,
the Hard Rock now understands and agrees that as a gaming licensee,
there are some subjects such as condoning cheating at gambling that
are not suitable for its commercial expression."
The settlement document had a similar statement related to the promotion
or encouragement of the abuse of drugs or any other illegal activity.
Kelley was not available for comment today.
The two ads addressed in the settlement were noted in the initial
Gaming Control Board complaint, filed in January. One ad shows a man
and a woman on a gaming table, surrounded by playing cards and poker
chips, with the caption, "There's always a temptation to cheat."
The other ad reads, "At the Hard Rock Hotel, we believe in your
Monday night rights: large quantities of prescription stimulants (and)
having wives in two states ... Tell your wives you are going; if they
are hot, bring them along."
The settlement's directive on the Hard Rock Compliance Committee
is broad in scope, warning the company to be wary of producing ads
that could be offensive, but it doesn't explicitly say that the company
had to quit producing suggestive ads. It warned that the company --
not the compliance committee -- is ultimately responsible for public
ad content.
" ... The role of the Hard Rock Compliance Committee is one
of an advisory board that meets quarterly to develop compliance recommendations,
while the Hard Rock management has the full responsibility for all
of the Hard Rock in-house promotions and public advertising,"
the settlement says.
"The Hard Rock management had a subjective belief that the role
of its compliance committee review of its compliance committee review
of 'questionable elements' was only applicable to in-house promotions
designed to prevent the reoccurence of inappropriate incidents on
the property of the Hard Rock and not to its public advertising,"
the settlement says.
"The Hard Rock management agrees to consider the best practices
recommendations of its compliance committee in conduct of both its
in-house promotions and its public advertising, while reserving the
ultimate conduct of both its in-house promotions and its public advertising,
while reserving the ultimate decision-making and responsibility to
comply with federal, state and local law to itself."
The original Gaming Control Board complaint cited two ads, in billboards
and publications.
One, which appeared just prior to the National Finals Rodeo in Las
Vegas, depicted a woman shown from the knees down with her underwear
falling to her angles, with the text saying, "Get readhe role
of the Hard Rock Compliance Committee is one of an advisory board
that meets quarterly to develop compliance recommendations, while
the Hard Rock management has the full responsibility for all of the
Hard Rock in-house promotions and public advertising," the settlement
says.
"The Hard Rock management had a subjective belief that the role
of its compliance committee review of its compliance committee review
of 'questionable elements' was only applicable to in-house promotions
designed to prevent the reoccurence of inappropriate incidents on
the property of the Hard Rock and not to its public advertising,"
the settlement says.
"The Hard Rock management agrees to consider the best practices
recommendations of its compliance committee in conduct of both its
in-house promotions and its public advertising, while reserving the
ultimate conduct of both its in-house promotions and its public advertising,
while reserving the ultimate decision-making and responsibility to
comply with federal, state and local law to itself."
The original Gaming Control Board complaint cited two ads, in billboards
and publications.
One, which appeared just prior to the National Finals Rodeo in Las
Vegas, depicted a woman shown from the knees down with her underwear
falling to her angles, with the text saying, "Get ready to buck
all night."
The other, displayed last summer, showed a naked woman holding a
pair of dice over her nipples, with the caption reading, "We
sell used dice."
Assistant Attorney General Antonia Cowan, who filed the original
complaint on behalf of the Gaming Control Board, said the sexual content
of the ads was not the primary issue, but the public raised the issue
on those billboards and others around the city at the same time the
complaint was filed.
Cowan said the original complaint was concerned with the Hard Rock's
internal policing policies and the settlement addressed that issue.
Gaming Control Board member Bobby Siller did not sign off on the
settlement, but said he was happy that the Hard Rock acknowledged
wrong-doing and was assessed the maximum fine allowable.
Siller said his concern with the settlement is that he does not believe
the Hard Rock did not know that it needed to take responsibility for
its public advertising and not just in-house promotions.
"My concern is that the Hard Rock doesn't have an appreciation
of the seriousness of the impact of this type of advertising on the
community and there is more concern about maintaining a competitive
edge," Siller said.
The sexual content of the Hard Rock ads and of those from other hotel-casinos
brought dy to buck all night."
The other, displayed last summer, showed a naked woman holding a
pair of dice over her nipples, with the caption reading, "We
sell used dice."
Assistant Attorney General Antonia Cowan, who filed the original
complaint on behalf of the Gaming Control Board, said the sexual content
of the ads was not the primary issue, but the public raised the issue
on those billboards and others around the city at the same time the
complaint was filed.
Cowan said the original complaint was concerned with the Hard Rock's
internal policing policies and the settlement addressed that issue.
Gaming Control Board member Bobby Siller did not sign off on the
settlement, but said he was happy that the Hard Rock acknowledged
wrong-doing and was assessed the maximum fine allowable.
Siller said his concern with the settlement is that he does not believe
the Hard Rock did not know that it needed to take responsibility for
its public advertising and not just in-house promotions.
"My concern is that the Hard Rock doesn't have an appreciation
of the seriousness of the impact of this type of advertising on the
community and there is more concern about maintaining a competitive
edge," Siller said.
The sexual content of the Hard Rock ads and of those from other hotel-casinos
brought dozens of protesters, many with their children in tow, to
a Nevada Gaming Commission meeting in March. The commission, a five-member
panel, writes the state's gaming regulations and has the ultimate
authority over whether a company is disciplined.
The complaint against the Hard Rock served as a catalyst for the
more than 200 people who jammed the hearing to ask that suggestive
advertising be curtailed.
There are no other advertising complaints pending before the Gaming
Control Board, officials said.
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