Paris Banned from Vegas

In light of her arrest Friday for possession of cocaine, socialite Paris Hilton has been banned from the Las Vegas resorts Wynn and Encore, a spokesman for the properties confirmed to PEOPLE.

The ban comes after several Las Vegas insiders claimed that the heiress might be blackballed from nightclubs. After the car in which she was riding was stopped, Hilton, 29, was taken inside the Wynn, where it was allegedly discovered that she had cocaine in her purse.

When a little white baggie fell out of the purse she was carrying, Paris Hilton had an explanation for Las Vegas police.

"She had not seen it but now thought it was gum,” said an officer's report.

It turned out the baggie actually contained .8 grams of cocaine, and now Hilton faces felony drug-possession charges with a Oct. 27 arraignment.

While speaking to police following a weekend traffic stop, Hilton denied the baggie belonged to her. In fact, she said, the purse wasn't hers either; she had borrowed it from a friend.

Mugging for the Camera

Paris Hilton was arrested Friday night in Las Vegas for possession of a controlled substance after cocaine was found in her purse, a police spokesman says.

Hilton, 29, was arrested shortly before midnight on Las Vegas Boulevard after police pulled over a vehicle that Hilton was in. The hotel heiress was not driving.

Public Information officer Marcus Martin said the vehicle was stopped after officers believed marijuana smoke was coming out of the car in front of the Wynn Hotel, where Hilton’s boyfriend, Cy Waits, operates a nightclub. After a search of Hilton, cocaine was found in her purse, Martin said.

Hilton was booked into the Clark County Detention Center early Saturday morning but later released. The male driver of the car was arrested on DUI drug charges.

This was the third drug-related incident involving Hilton this summer. In July, Hilton was held by police on the French island of Corsica and caught with less than a gram of marijuana in her purse but released without being charged. Earlier in July, she was questioned by South African police at the World Cup after she was allegedly caught smoking marijuana. Her rep called it a "complete misunderstanding," and Hilton wasn't charged.

Talk About a Bad Hair Day!

Paris Hilton was hit with a $35 million lawsuit on Wednesday by a hair-extensions company that claims she breached her contract with them by wearing a competitor’s fake locks. The company, Hairtech International Inc., which manufactured the Dreamcatchers hair extension line that Paris fronted beginning in 2007, is seeking damages of 10 times what Hilton was reportedly paid under the contract. In addition to sporting a rival product in 2008, Hairtech claims Hilton missed a launch party for a new product in 2007 because she was in jail. Hilton, 29, so far hasn’t commented on the suit.

Paris Loves Her Champagne

Who knew I had so much in common with Paris?

Continuing her European vacation, the heiress was spotted hitting the bottle (of bubbly) in Saint-Tropez, France. From a seaside romp to a party at the swanky La Voile Rouge, at least she wasn't breaking out any illegal substances.

And a bottle or two (or three) wasn't quite enough for the heiress. Alongside a few seemingly random party pals, Hilton guzzled down the beverage from a magnum bottle – after getting down and bubbly with the popped bottle.

Who needs a spray tan when you can get misted with champagne?