Judge Dismisses Atlantic City Price-Fixing Lawsuit
A U.S. District Court judge has dismissed a consumer class-action lawsuit that alleged price-fixing in the setting of room rates by Atlantic City hotel-casinos. The lawsuit argued that the use of a revenue management platform led to overcharging for rooms in Atlantic City, and use of the platform amounted to price-fixing. The plaintiffs allege that hotel owners submit real-time price and occupancy data in a shared software program to set prices.
The lawsuit named Caesars Entertainment and MGM Resorts International, among other operators. Judge Karen Williams held that the plaintiffs had failed to present sufficient evidence for the lawsuit to move forward. The judge dismissed the lawsuit with prejudice, meaning it cannot be re-filed.
The case is one of several consumer class-action suits brought against casino-hotels alleging a conspiracy to artificially raise room rates. A similar case in Nevada was dismissed, and the consumers are appealing that decision. According to a Reuters report, the software at issue is Cendyn’s “Rainmaker” platform, used as a “shared pricing brain.”
The plaintiffs alleged the shared pricing constituted a conspiracy to set higher rates. Cendyn and the hotels countered that there was no direct or circumstantial evidence that the defendants agreed to fix prices. They also said the hotels were not required to accept the software’s pricing recommendations. The judge agreed with the defendants’ argument.
Cedar Crossing Casino Advocates Present Plans to IRGC
On Oct. 3, representatives from the Linn County Gaming Association and Peninsula Pacific Entertainment made their formal presentation to the Iowa Racing and Gaming Commission (IRGC) for a gaming license for the proposed Cedar Crossing Casino and Entertainment Center in downtown Cedar Rapids.
The project is 10-plus years in the making, and was previously rejected in 2014 and 2017. A moratorium on gaming licenses in the state expired this year, and applicants are racing to submit materials amid speculation that state lawmakers will try to enact a new moratorium before the IRGC can make a final ruling in February.
According to KWWL, the $275 million development would include a casino with 700 slots, 23 tables, three restaurants, and an “arts and cultural center attached with a stem lab.”
Battles Continue Over NJ Casino Smoking
Anti-smoking advocates led by Casino Employees Against Smoking Effects (CEASE) in Atlantic City are again challenging what they say are unsubstantiated claims that going smoke-free would harm casino revenues and possibly result in the closing of one or more casinos.
The latest dispute arose from comments made by New Jersey Assembly Majority Leader Lou Greenwald at the Southern New Jersey Development Council conference last weekend. According to CEASE, Greenwald said that protecting casino workers from secondhand smoke is secondary to economic concerns and potential job losses if smoking is banned.
CEASE was quick to dispute what it called “debunked” predictions of job losses, and suggested Greenwald’s position can be traced to campaign contributions. “Majority Leader Greenwald has taken tens of thousands of dollars in campaign contributions from Big Tobacco companies lie Philip Morris,” said CEASE co-founder and Atlantic City table-game dealer Pete Naccarelli in a press release, “so it’s no surprise he wants to create Philip Morris smoking rooms that would continue to jeopardize our lives.
“Greenwald has in fact been one of the biggest barriers to advancing legislation that would actually solve the problem. It’s time for the majority leader to stop standing in the way of the bipartisan bill that has broad support that would finally close the casino smoking loophole and actually attract more visitors to Atlantic City who stay away today because of the smoke.”
Las Vegas Officials Expand ‘Order-Out Corridor’
The Las Vegas City Council Oct. 2 voted to expand its so-called “order-out corridor” by 26 acres to encompass the Plaza Hotel and the Main Street Station parking garage.
First approved in 2022, the ordinance makes it so that local judges have the option to ban people from certain areas of town for misdemeanor offenses committed in those areas in efforts to avoid further crime and criminal charges.
By now, the corridor includes most of the city’s most popular areas, including almost all of the Strip and downtown. According to the Las Vegas Sun, Metro Police officials said in July that the corridor had led to a “10 percent decrease in victims of crime on the Fremont Street corridor and an “astonishing” decrease near the Strat within the past year.”
New York Regulator Calls Wynn, Resorts World Incidents “Serious”
Brian O’Dwyer, the chairman of the New York State Gaming Commission, is concerned with how regulatory issues in Las Vegas might impact the race for the three downstate casino licenses.
In a Spet. 30 interview with the New York Post, O’Dwyer said that Wynn Resorts’ recent $130 million settlement for illegal money transfers and Resorts World’s involvement in an illegal bookmaking scandal are “serious” and might impact whether or not either company is awarded a license. Both have submitted bids.
“Of particular concern to me are that two of our …. potential bidders for a new casino license, have been cited in Las Vegas for various violations of the law,” O’Dwyer told the Post.” The Resort World case is “particularly disturbing in that it alleges a culture of non-compliance in that information on illicit or suspicious activity was either negligently or worse fully disregarded to promote financial gain,” the chairman said.
Rio Unveils First Phase of Renovations
On Sept. 30, the Rio Hotel & Casino announced that the first phase of its massive renovation plan has been completed. Per KSNV, the new additions include 220,000 square feet of renovated meeting space, eight new dining options, a new pool area, new carpets, and 900 new slots.
Additionally, the property is also debuting a new LED light show that features over three miles of programmable lights.
“With the addition of new dining destinations, refreshed spaces throughout the resort, and one of the city’s most rewarding loyalty programs, these renovations mark the beginning of a new era—one that offers an elevated yet approachable luxury experience for both locals and visitors,” Rio President and CEO Patrick Miller said in a statement.
Penn Proposes Hotel for Hollywood Casino After Paying Penalties for 10 Years
Representatives from Penn Entertainment went before the Unified Government’s Economic Development and Finance Committee in Kansas City, Kan. Sept. 30 to present plans for a 125-room hotel adjacent to its Hollywood Casino. The committee voted in favor of the project 4-2, and the matter will proceed to the Unified Government Board of Commissioners later this month.
When Hollywood opened in 2012, Penn was given two years to develop the hotel. It never did, and has paid at least $12 million in penalties because of it. But the company said the market conditions are now more favorable.
“It’s something we’ve contemplated since before the casino opened and something we’ve gone back to every year to determine the feasibility of,” Aaron Rosenthal, Penn’s senior vice president of regional operations, said during the hearing, per the Kansas City Star. “And for a variety of reasons, the feasibility for us had not made sense. But it does now.”
Casino Queen Marquette Riverboat to be Sold
On Oct. 1, KCRG reported that the Casino Queen Marquette riverboat in Marquette, Iowa will be sold and moved as the casino moves to a permanent on-land location.
The boat, which opened in 1994, houses some 400 slots and 6 tables, all of which will move to the permanent location. Sports betting windows and new dining options are also planned for the new location. General Manager Robin Corbeil said the new facility is slated to open late next year.
