A federal appeals court ruled against hearing a class action lawsuit alleging price fixing against several Las Vegas casinos.
As a result, the lower court’s ruling against the plaintiffs was confirmed when the 9th U.S. Circuit Court of Appeals declined to hear the case. The judges ruled that using the same software for room reservations was insufficient to prove that properties had colluded on prices.
Courts Rule Hotels Act Independently
The plaintiffs argued that the software provided by the Cendyn technology firm set artificially high room rates at properties owned by Wynn Resorts, Caesars Entertainment, and Treasure Island. However, the court said that the casinos’ hotel used the software independently of each other.
In May, a district judge dismissed the lawsuit. But plaintiffs appealed that decision. The court ultimately noted that the pricing system was non-binding and properties could set their own rates.
“Rather than eliminating competition, pricing one’s hotel rooms in a manner calculated to maximize profits is how one competes,” Appeals Circuit Court Judge Carlos Bea wrote in the decision.
The plaintiffs argued that even a non-binding pricing system could curtail competition. But judges didn’t agree with that viewpoint.
MGM and Caesars faced similar lawsuits for the companies’ casinos in Atlantic City after two guests filed suit in May 2023. The Federal Trade Commission and the Justice Department’s Antitrust Division supported those efforts.
However, U.S. District Judge Karen Williams dismissed the lawsuit in October 2024. Williams ruled the plaintiffs did not present enough evidence to move forward with a trial.
Attorneys for the plaintiffs argued that the hotels’ software served “as their shared pricing brain” that “does all the work for them.”
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