Attorneys representing several high-profile operators on the Las Vegas Strip—including Wynn Resorts, Caesars Entertainment and MGM Resorts International—recently filed a motion to dismiss a lawsuit brought forth by two tourists who are alleging that the operators have long utilized a revenue management system known as Rainmaker to “unlawfully maximize profits.”
In the joint motion, which was filed March 27 to the U.S. District Court of Nevada, the defendants argued that the “complaint fails at the outset because it is missing every essential ingredient necessary to plead an antitrust conspiracy.”
The operators’ attorneys did not respond to a request for comment from the Las Vegas Review-Journal.
Conversely, the plaintiffs, who are being represented by the Seattle firm Hagens Berman, said in its original filing in January that Rainmaker utilizes real-time data from various operators and uses it to produce rate recommendations that are designed to maximize profit, which in turn is a violation of the Sherman Antitrust Act.
However, the defendants asserted in their motion to dismiss that the claim does not include any evidence that would point to the framework of a conspiracy, such as who entered the agreement, what the agreement was or how it operated.
“The complaint fails to identify a single communication between Hotel Defendants, much less one that suggests a conspiracy was afoot,” the motion read in part.
Instead, the plaintiffs’ claim relies on an unnamed witness who claimed that the platform and other similar services are used by some 90 percent of Strip hotels.
However, Steve Berman, partner at Hagnes Berman, did not seem to be at all discouraged by the motion—he said in a statement that the operators “will attempt every trick in the book to hedge their bets, but we believe the cards are stacked against them. We look forward to the court’s response and to continuing this case on behalf of the sizable class of those harmed by their illegal pricing measures.”
The Review-Journal indicated that several gaming and hospitality experts had said over the years that algorithmic-type platforms that recommend rates and forecast demand, such as Rainmaker, are common among the industry.
