Gaming industry voices opposition to Biden's proposed crackdown on resort fees
President Joe Biden is going after extra costs, often known as "garbage" fees, that hotels and casinos usually slap on at the end of the booking process. However, the primary casino lobbying group, the American Gaming Association (AGA), thinks Biden's mission is too intense.
In comments to the Federal Trade Commission (FTC) for the consumer protection agency’s public notice on its “Deceptive or Unfair Fees Trade Regulation Rule,” the AGA states that the Biden administration is misguidedly concentrating its efforts on an industry already under heavy regulation.
The AGA argues that fees charged by its members are neither hidden, nor worthless, and thus should be disregarded in any future FTC rulings.
The AGA represents a variety of gaming operators, manufacturers, and suppliers, sportsbooks, gaming tech and payment processing firms, with notable members like MGM Resorts, Caesars Entertainment, Las Vegas Sands, Penn Entertainment, Wynn Resorts, DraftKings, FanDuel, Seminole Hard Rock Gaming, and the Cherokee Nation.
Casinos Defend Disclosures
In Las Vegas and other prominent casino resorts, resort fees often involve a nightly add-on covering amenities such as Wi-Fi, local calls, gym access, boarding pass printing, and a daily newspaper. On the Las Vegas Strip, these charges are around $50 a night at top properties like the Bellagio, Wynn, and Caesars Palace.
While the AGA backs the government making hotels and casino resorts disclose their prices openly, the group opposes forcing them to eliminate resort fees.
Resort fees at our members' properties cover services that significantly enhance customers' stay and set us apart from standard lodging options,” Miller stated to the FTC. “These added services and amenities offer an enhanced travel experience, with attention to detail that guests appreciate.”
Miller asserts that such fees are a hint to customers that they will get more than just a nicely furnished room. The extra value these fees cover, Miller adds, makes them "inherently valuable" and thus should not be classified as a "garbage fee."
Casino Disclosures
Resort fees in Las Vegas have faced harsh criticism for years.
Previously criticized resort fee coverage from 2017 drew a passionate and harsh response from the public, with complaints about the added charges.
The backlash led to Las Vegas casinos providing better exposure of the resort fee during the booking process. MGM Resorts and Caesars Entertainment, which manage most of the Strip’s casinos, now reveal the resort fee early on in the online booking process.
This transparency, the AGA claims, should meet the federal government's demand for hotels to fully disclose the cost of overnight accommodations before a customer enters their personal information and payment details.
“With clear disclosures, consumers are equipped to make their own choice about their traveling priorities — many hotels don’t charge resort fees and, in fact, advertise that they don’t. Additional regulation could put resorts at a disadvantage if consumers would be unaware of the amenities at one property versus the other,” Miller concluded.
