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 SinCity. 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.