Price-Fixing Lawsuit Targets Las Vegas Casino Resorts for Appeal
The lawsuit regarding the four largest casino resorts on Las Vegas Strip, featuring Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island, refuses to let go of the allegations of price-fixing.
Originally, a 2023 class action lawsuit claimed these companies were working together to increase the cost of their hotel rooms.
The legal battle has seen the case dismissed twice; the most recent time was last month. However, the latest dismissal by U.S. District Chief Judge Miranda Du has been brought to the 9th U.S. Circuit Court of Appeals in San Francisco, turning this issue into a significant frontier for algorithmic-pricing antitrust cases.
The case marks the first algorithmic-pricing antitrust case to reach an appeals court.
A Dispute Concerning Antitrust
The initial lawsuit, Gibson v. Cendyn, alleged these casino companies - which manage 26 out of the 33 resorts on or near the Las Vegas Strip - violated the Sherman Antitrust Act by conspiring to raise hotel room rates.
The suit pinpointed Rainmaker, a data-sharing software by Cendyn of Boca Raton, Florida, as the alleged facilitator of this conspiracy.
The accused companies insist they have not engaged in any illegal behavior. They maintain that Rainmaker’s role was merely to give them recommendations that they weren't compelled to follow.
Judge Du concurred with their arguments. She determined the lawsuit didn't establish a clear case of conspiring to set prices.
Her dismissal stated, "Plaintiffs’ allegations that Defendants entered into a tacit agreement to fix prices have not transcended from conceivable to plausible, even given the added allegations. This case remains a unique antitrust theory revolving around algorithmic pricing, waiting for substantiating evidence."
In the next stages of this case, both sides will present arguments and evidence. Additionally, interested parties will be able to make submissions. The final call will be made by a panel of three judges, with a verdict expected in the near future.
