Judge Dismisses Las Vegas Casino Resort Price-Fixing Lawsuit

Las Vegas Casino Resort

A lawsuit accusing four major Las Vegas Strip casino resort operators of price-fixing has been dismissed, granting a victory to Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island.

U.S. District Chief Judge Miranda Du dismissed the amended lawsuit, which was a revision of one she initially rejected last October.

Judge Du stated that the amended lawsuit still failed to clearly demonstrate an agreement to conspire to set price points among the resort operators.

Misplaced Antitrust Allegations

The class action suit, filed in U.S. District Court in January 2023 by Seattle-based law firm Hagens Berman Sobol Shapiro, alleged that the four casino resort companies—controlling 26 of the 33 properties on or near the Las Vegas Strip—colluded to artificially inflate hotel room prices, violating the Sherman Antitrust Act.

The lawsuit claimed that this collusion was facilitated through a data-sharing software called Rainmaker, produced by the Florida-based Cyndyn Group (also a defendant in the suit).

In a competitive market, hotel operators typically price rooms independently to maximize occupancy. However, the lawsuit argued that the information shared and algorithms used by Rainmaker “displace normal competitive pricing and lead to increased room prices.”

Rainmaker’s proprietary software, Guestrev, was alleged to analyze hotel guest and room supply information, then artificially suppress supply to make dynamic pricing recommendations biased toward higher prices for the resorts.

Despite these claims, Judge Du noted in her dismissal that the resorts often do not even accept pricing recommendations from Rainmaker.

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