Law Commentary
A federal appeals court has revived a proposed class action accusing several Atlantic City casino hotels of using shared, AI-assisted pricing software to coordinate room rates and charge guests more than they would have paid in a competitive market.
The 3rd U.S. Circuit Court of Appeals in Philadelphia ruled Wednesday that the allegations were strong enough to proceed under federal antitrust law. The decision reverses a 2024 dismissal and sends the case back to U.S. District Court in New Jersey.
Companies tied to Caesars Atlantic City, Harrah’s Resort Atlantic City, Tropicana Atlantic City, Borgata Hotel Casino & Spa and Hard Rock Hotel & Casino Atlantic City are named alongside software maker Cendyn Group. Guests who rented rooms at the properties seek to represent a broader class of customers who they claim paid inflated rates.
Rainmaker, a revenue management platform operated by Cendyn, is at the center of the lawsuit. The complaint alleges that participating casinos supplied the system with current, nonpublic information about room rates and occupancy. Cendyn’s platform then combined that material with data from competing properties and issued new pricing recommendations several times each day.
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https://www.lawcommentary.com/articles/appeals-court-revives-atlantic-city-casino-ai-price-fixing-lawsuit
