Lawsuit Accuses Las Vegas Strip Hotels Of Price Fixing
Probably wasn’t a good time to brag about record high room rates. A Seattle-based law firm is suing several Las Vegas Strip hotel-casino operators for colluding to pump up rates.
Hagens Berman places the blame on the properties and a specific piece of software called “Rainmaker” (which is also named in the lawsuit). So what are they alleged to have done and is it illegal if they did?
Here’s how they say the Las Vegas Strip inflated hotel room rates
The accusation is the software took in data from all the hotels and the multiple owners. Typically, one company wouldn’t have the data from another. But considering they had shared software, the software was able to compare room rates in real time, as well as room vacancies. The software knew it all, and shared it all, and that’s the rub. That data shouldn’t have been available to everyone, the lawsuit alleges, and that’s how the room rates got inflated.
So, the software could suggest that room rates could increase given the lack of rooms and pricing at other properties. The algorithm was doing its job, but that job would be considered illegal collusion according to the lawsuit. Sure, the properties may not have directly colluded, but through the intermediary (the software) they believe the properties knowingly benefitted from the shared information.
Wynn, TI, Caesars and MGM are all named in the lawsuit, along with the software company. The law firm hopes to potentially get guests (at least partially) reimbursed for their jacked up room rates.
The Las Vegas Convention and Visitors Authority bragged several times about how room rates in Vegas were at all-time highs in 2022. Whoops.
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