Consumers have re-litigated lawsuits against several high-profile Las Vegas casino resorts, alleging complex price-fixing schemes that could have far-reaching implications for antitrust enforcement in tech-heavy markets. The claims were recently filed in the 9th U.S. Circuit Court of Appeals after a Nevada district judge dismissed the initial claims earlier this year.
The appeal, filed on Thursday, Sept. 26, is intended to work with software developer Sendin Group and its subsidiary, Rainmaker Group Unlimited, to launch a collective suit against big-name players like Win Resort, Caesars Entertainment, and Treasure Island. The plaintiffs allege that the agencies violated antitrust laws by manipulating room pricing algorithms to artificially raise rates.
Alleged algorithmic collusion in pricing:
The core of the lawsuit alleges that the relevant casino operator and Cendyn’s software manipulated data entered into pricing algorithms to adjust room rates above competition levels. Plaintiffs argue that this technique implies a modern form of collusion, which is more nuanced but effective than direct pricing agreements between competitors.
“Today’s competitors can use algorithms to collude more easily and effectively than in the past,” the plaintiffs argued in a Sept. 26 court filing, as reported by The Las Vegas Review-Journal. They argue that the practice could set a dangerous precedent if not challenged, essentially giving them immunity from algorithmic price gouging from anti-trust investigations.
The casino operators charged have previously denied the charges and pleaded not guilty. The filing highlighted the significance of the case, particularly as similar charges have been filed in other jurisdictions, with cases involving some of the same defendants pending in Atlantic City.
U.S. District Judge Miranda Du in Nevada dismissed the lawsuit in May, expressing skepticism about the plaintiffs’ ability to demonstrate organized efforts between defendants. Her 18-page ruling pointed to the theoretical nature of the claim, suggesting that plaintiffs are attempting to fit scarce factual evidence into a new antitrust framework.
Implications and industry response:
The plaintiffs argued in a Sept. 26 briefing that the district court’s decision was flawed, accusing it of drawing inferences against them and ignoring existing legal precedents. They highlighted the need for judicial investigations into new business practices that use technology to potentially stifle competition.
In a related development, a collective lawsuit was launched this Wednesday accusing the Las Vegas strip hotel operator of using a revenue management platform to exchange real-time price data. The system allows these operators to set prices that unfairly maximize profits at the expense of consumers, according to Hegens Berman’s lawyer. 프라그마틱 슬롯 사이트
The impact of these lawsuits extends out of court. Streep’s average daily room rates have reached historic highs, and have skyrocketed during major events. These rates not only impact consumer costs, but also have far-reaching economic implications, including funding major projects such as the expansion of Allegiant Stadium and Las Vegas Convention Center.