Three prominent Las Vegas casino resorts stood accused in a class-action lawsuit that they were using various means to coordinate room prices in the city and thus offer less competitive rates to customers. The claim fell short on Friday when the trio of properties won a victory at a US appeals court.
Lawsuit against Las Vegas casino resorts dismissed in the Court of Appeals
The 9th US Circuit Court of Appeals upheld a lower court decision, agreeing that the argument made by the claimants, i.e., that the resorts used the same revenue-management service provider, was not enough to demonstrate that there was a deeper conspiracy at foot.
The lawsuit sought to prove that the three property owners colluded in a way that allowed them to overcharge for hotel rooms, but that argument was ultimately struck down. The lawsuit was originally dismissed in May, but an appeal brought it before the 9th Circuit.
Circuit Judge Carlos Bea, US District Court Judge Jeffrey Brown, and Circuit Judge Ana de Alba upheld the lower-court verdict and argued that the use of software that allowed the companies to maximize the value they received from their hotel rooms was a sign of a healthy economy and competition.
The judges did not find any indication that these calculations were tied to any backroom channel of communication that would have allowed the properties to exaggerate their pricing to squeeze paying customers.
However, all pricing suggestions generated by software are just that – suggestions. It is ultimately down to the properties to decide if they wish to apply them.
