Court Encouraged to Look at Casino Hotel Pricing Lawsuit

By Jerry Smith Staff Writer Updated: 04/13/2024

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Hotel Pricing Lawsuit

It has been reported that Federal authorities are urging a New Jersey court to consider a lawsuit against several Atlantic City casino hotels. According to the claims, the hotels in question worked together to raise their room prices unfairly.

The Federal Trade Commission and the Department of Justice’s Antitrust Division filed a joint statement recently, according to reports. They argued that using the same company to set room prices could break a law called the Sherman Act. The law is designed to ensure that there is fair competition in the marketplace.

It is claimed that the FTC and DOJ want the United States District Court of New Jersey to consider the lawsuit because they want to ensure that fair competition laws are upheld in the state. Officials said that the outcome of this case was important in terms of ensuring companies played by the rules.

Big Names Included in the Lawsuit

It was reported that the lawsuit targets a number of big names like Caesars Entertainment, MGM Resorts, and Hard Rock International. The companies are accused of using a company called Cendyn Group to set their room prices, and the plaintiffs claim in the lawsuit that this led to higher prices for consumers.

Officials from the casinos are eager for the case to be thrown out, but according to reports, the judge has decided to put three separate lawsuits together. The FTC and DOJ are asking the court not to dismiss the case and to give it fair consideration.

The testimony claims:

As technology has developed in the 133 years since the Sherman Act created a federal prohibition on price fixing, firms have evolved the mechanisms they use for reaching unlawful price-fixing agreements.

The price of staying in an Atlantic City casino hotel has been going up, even though fewer people are booking rooms. This is causing concern among consumers and many officials.

From 2018 to 2023, the average price for a night in a casino hotel room rose from $137 to $186. However, during the same time, the number of occupied rooms did not rise at such a noticeable level.

Pricing Having Negative Impact on Consumers

It is further claimed that the pricing is having a big negative impact on consumers looking to visit Atlantic City and its famous casino hotels. Many people are already feeling the financial pinch due to the economic situation and inflation, and with prices rising dramatically at some casino hotels, it has left many unable to afford a break.

If the court rules in favor of the plaintiffs, this could lead to greater transparency and accountability when it comes to pricing practices. For consumers, this would help to ensure that they are not taken advantage of or charged over the odds for their casino hotel stay.

On the other hand, officials said that a dismissal of the case by the court could encourage even more companies to engage in questionable practices in terms of setting room rates, which could then lead to ongoing issues.