Las Vegas casino operators that account for around 90 per cent of the rooms on the Strip have been hit with a class action lawsuit alleging the companies collectively used third-party booking software to artificially set room prices higher.
As reported by Frommers, the operators include Caesars Entertainment, MGM Resorts International, Treasure Island, and Wynn Resorts. The complaint, filed last week in U.S. District Court in Las Vegas, claims that a revenue management company, called Rainmaker Group Unlimited, provided a shared algorithm that enabled "a scheme perpetrated by some of the largest gaming and hospitality companies," according to Hagens Berman, a law firm representing plaintiffs.
The alleged scheme involved an “unfair exchange of information” that resulted in room rates getting set higher than market price, and the lawsuit alleges that the use of a shared pricing algorithm constitutes a violation of the Sherman Antitrust Act and is a form of price collusion.
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