"They did have dinner, but they are just friends," says the rep, adding that the LA Ink star, 28, and James, 41, first met "a while ago" since both of their shows are on TLC.
"They've always remained good friends," says her rep. "There is no romance there with Jesse."
The tattooed twosome were spotted dining at Palm Casino Resort's N9NE and holding hands Saturday night but the outing, according to the rep, was "just good friends catching up. She's been seen holding hands with friends before."
On Sunday, the two visited Bodies … The Exhibition at the Luxor Hotel and Casino, where they continued to hold hands and acted "very affectionate," a source says. The two discreetly toured the exhibit together, but James continued into another gallery, avoiding the cameras as a staff member asked the LA Ink star to take a picture.
James's divorce from Sandra Bullock was finalized in June. Kat Von D has been in an on-again, off-again relationship with Motley Crue bassist Nikki Sixx, who does make an appearance this season on LA Ink.
With reporting by MARK GRAY and CYNTHIA WANG