The Diamond Lounge at Caesars Palace is a great place to just hang out and have a few drinks and snack as well. It is located by Laurel Collection checkin for Diamond and 7 Star players. There is sometimes a line to get in depending on when you go but it moves by fairly quickly as they do a good job with allowing more people in once people leave during busy times.
They have a few computers and a printer that you can use with Internet access that is really convenient since the Augustus tower has pretty spotty cell service (AT&T). All drinks are free (just need to tip) so feel free to drink your heart out! There is a bar area when you first walk in but also tables and couches throughout the lounge where you can sit as well. There are also TV's so it is a nice place to watch a game. They serve hot food (wings, meatballs) during dinner hours as well as salads, chips, and pastries during most other hours. It is set up at the back of the lounge in a buffet style setup.
The servers are pretty attentive and they are pretty quick with clearing the plates you are done with as well. It's definitely a great place to hangout and I'll definitely be back to grab a snack or just hangout!