Lawsuit Against Atlantic City Casino Hotels Tossed OutPlaintiffs Alleged Price Fixing, Company Denies Accusations |
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A federal judge in New Jersey dismissed a class action lawsuit this week that alleged Atlantic City casinos had colluded to overcharge guests for hotel room rates.
U.S. District Judge Karen Williams ruled that the plaintiffs in the case did not present enough evidence in the case to move forward with a trial. Her ruling came with prejudice, meaning that it can’t be refiled. The lawsuit included some of the casino industry’s largest operators, such as Caesars Entertainment and MGM Resorts. The companies have denied the allegations.
In the suit, the plaintiffs argued that the hotels’ software served “as their shared pricing brain” that “does all the hard work for them.” The suit also added that “while the AI-driven technology at issue may be fairly novel, the underlying conduct is not.” The plaintiffs argued the platform allowed the hotels to see critical real-time hotel occupancy and room rates to set prices.
The lawsuit recently received the backing of the Federal Trade Commission and the Justice Department’s Antitrust Division.
“The two agencies argued that the company’s use of the algorithm can still violate antitrust law even if the companies never directly communicated, responding to one of the legal arguments used by the defendants,” the Wall Street Journal reported. “The FTC and DOJ also said in their statement that the companies could have still violated U.S. law by using the algorithm to set a starting price, even if they ended up charging different amounts.”
However, the judge in the case didn’t believe there was enough evidence. A recent ruling in Nevada also rejected a similar suit alleging price-fixing among hotels in that state as well. The plaintiffs are appealing the case.
In other Atlantic City-related gaming news, a judge in New Jersey recently ruled that casinos had no obligation to stop compulsive gamblers from betting.
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