This is a RUSH transcript from "The O'Reilly Factor," June 10, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Kelly File" segment tonight: A new commercial by the far-left group Drug Policy Alliance, funded by our buddy, George Soros, pretty much says the USA should give up the war on drugs.

(BEGIN VIDEO CLIP)

GEORGE SOROS, PHILANTHROPIST: I support the Drug Policy Alliance because it fosters debate on drug policy.

STING, SINGER/SONGWRITER: Because the war on drugs represents an extraordinary violation of human rights.

MONTEL WILLIAMS, PRODUCER: Because whether you use drugs or not, you deserve to be treated with respect, kindness and dignity.

STING: I support the Drug Policy Alliance because I believe in the right to sovereignty over one's own mind and body.

WILLIAMS: Because I believe in personal freedom and personal choice.

(END VIDEO CLIP)

O'REILLY: Love to get that Sting guy on here. Here now to analyze, Fox News anchor Megyn Kelly. You can see her on "America Live" at 1:00 p.m. each weekday.

You know what galls me about this? Sting, OK? We have sovereignty of our own bodies. Seventy percent of child abuse and neglect in this country is substance-abuse driven, most of it, narcotics.

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MEGYN KELLY, HOST, "AMERICA LIVE": Exactly right. They actually say it could be even higher than that because, you know…

O'REILLY: You know, what do you have to say about that, Sting? All right. About the rain forest, put that aside and look at a child abuse once in a while.

KELLY: There sits in the ivory tower. He's not even an American, first of all.

O'REILLY: That's all right. I don't mind that he's…

KELLY: Save your opinions on our domestic policy for, you know, your own domestic policy. And you know, when he's not working on a tantric sex, apparently, he's thinking about America drug policy, and you know, he doesn't…

O'REILLY: But that clears your mind? Doesn't it? The tantric thing clears your mind?

KELLY: I will defer to Sting on that. But he, so he sits over there in his ivory tower. This guy has more money than god. He's not going to be affected by it if, you know, this…

O'REILLY: No, he wants to get stoned. He's going to get stoned.

KELLY: No, but listen, this organization that he's joined in with, the Soros organization, this is what they say they stand for, Bill. They believe in social and economic justice. They consume drugs responsibly. They're sick and tired of people who have suffered indignities and injustices of the war on drugs. And they talk about how they are sick and tired of being stigmatized for their drug use. When you speak to the issue of how people go to jail for drug use, they say it's racist. The war on drugs is racist, and then they talk about how the children of inmates really struggle.

O'REILLY: The children of inmates struggle.

KELLY: And that's the fault of the police for prosecuting the druggies.

O'REILLY: That still they get the hell beat out of them by intoxicated parents. Look, the reason that the war on — this is — I fervently believe this. The reason we have a war on drugs is to protect people from people who get intoxicated and do terrible, terrible things. Now, we have alcohol. That's legal. You don't compound the problem, but anyway, this should make us on forever.

KELLY: Cocaine is not the same thing as alcohol. Seventy-five percent addiction rate of people who try cocaine…

O'REILLY: And heroin is even worse.

KELLY: Ten percent on alcohol.

O'REILLY: And methamphetamine?

KELLY: These people want it all legal.

O'REILLY: Right.

KELLY: All of it. Crack, the…

O'REILLY: That meth stuff? Kids are getting the hell kicked out of them.

All right. Now, Tampa, we did this story in Iowa, you may remember. We got the state law changed where you can't be a minor and work in a strip club. Now, in Tampa, 16-year-old, right?

KELLY: Uh-huh.

O'REILLY: She's found in there. And the Tampa club says, hey, she gave us an ID that says she was 18.

KELLY: It says she was 27. I had no idea. Sixteen and 27 looks the same to me.

O'REILLY: This is the girl.

KELLY: Yet, even if that were true, you mean, if she does look 27, you see her face. It doesn't matter. They're liable. They could be criminally prosecuted for exploitation of a minor, for child pornography because there were recordings of it.

O'REILLY: Right. It doesn't matter whether somebody produces a phony ID.

KELLY: No.

O'REILLY: The club itself…

KELLY: The way the statute is written the club is now in trouble.

O'REILLY: In Florida?

KELLY: Yes.

O'REILLY: Has to check it out, has to know exactly who's working there.

KELLY: Yes, of course, because they want to protect the minor.

O'REILLY: Has the girl been arrested?

KELLY: No. The girl hasn't committed a crime, only the club.

O'REILLY: Really? So the 16-year-old doing this in Florida, state of Florida, that's not a crime?

KELLY: No. As I look at the statute, I don't see her in legal trouble. But should criminal charges have been filed? I don't think so. This isn't one of those situations. But no criminal charges are pending against the strip club, maybe they will be, but right now, what's happened is the mother of the 16-year-old has filed a civil case, which she's allowed to do in Florida, going after these folks for $150,000 or $15,000.

O'REILLY: Wait a minute, this is the mother, right? Wait a minute, where did the mother think her daughter was?

KELLY: She was a runaway.

O'REILLY: So, the daughter ran away from home.

KELLY: According to the mother's lawyer, the daughter ran away moments after like the day after the mother found out that she was working at the gentleman's club and then continued to work at the gentleman's club, and an undercover vice officer found her, saw her, and actually was the one who…

O'REILLY: All right. So, the mother is suing the club?

KELLY: Uh-huh.

O'REILLY: All right. And you think she's got a case?

KELLY: Oh, yes. She's got a great case.

O'REILLY: All right. Now, Joran van der Sloot, we obviously say that we believe he is a serial killer. And we are, by the way, having a huge investigation. We'll have it tomorrow. Geraldo's on it. You really need to watch this. We're going to break some new stuff tomorrow on this. What is the latest on this case and how were you handling it in the afternoon?

KELLY: We're covering it as a story but not a huge one. I mean, our show is not that focused on crime. We're more focused on politics right now. But we cover it, because you know, the nation, I think, is interested in this guy. We care about a life in this country. The nation got invested in the life of Natalee Holloway for whatever reason.

O'REILLY: Right.

KELLY: And everyone knows that this guy is behind her murder. And now we find out there are more. The latest in this information today in this case are No. 1, now, it looks like he specifically targeted this Stefany Flores because she won big at the casino. So, the earlier reports have been she won a thousand. Now, they're saying she won up to $10,000. He saw it, targeted her, became friends with her, and now we saw the new video released today of when she came up to him the night that they went in this hotel room earlier in the casino, sat down next to him. They were quite chummy and, you know…

O'REILLY: Yes, there's casino video.

KELLY: But let me just say this, this is her sitting next to him at the casino moments, you know, hours before she would be dead.

O'REILLY: Right.

KELLY: Now, today in the case, the police and the courts have finally released the affidavit in support of the criminal complaint against Joran van der Sloot in America for the extortion of Beth Holloway Twitty. You remember how while he's working on this woman in Peru, he's trying to extort Beth Holloway to try to get thousands of dollars from her in exchange for telling where the body of Natalee is.

O'REILLY: Right.

KELLY: She pays 25 grand. Now we see from the criminal complaint, according to the investigator, he says his father buried Natalee's body in gravel in front of a home in Aruba that was under construction at the time he killed Natalee.

O'REILLY: OK. We're going to have more on this. We're going to have more on this.

KELLY: It wasn't true.

O'REILLY: No. We're going to have the FBI and the criminal complaint, all of that tomorrow. Megyn Kelly, everybody.

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