Justice Department Backs Lawsuit Against Las Vegas Hotels

The U.S. Justice Department has filed an amicus brief in support of consumers challenging major Las Vegas hotels, including Caesars Entertainment and Wynn Resorts, over allegations of price-fixing through shared algorithms. The DOJ's brief argues that these pricing algorithms can enhance collusion opportunities among competitors, contradicting a previous ruling by Judge Miranda Du, who dismissed the case for lack of evidence of coordinated action. The lawsuit, which is the first of its kind to reach a federal appeals court, claims that hotels used a software platform by Cendyn to artificially inflate room rates. The DOJ emphasized that the freedom to disregard pricing recommendations does not negate the possibility of collusion. This case could set a significant precedent for future antitrust lawsuits in the hospitality sector. Red Rock Resorts has also announced plans for a new historical racing machine venue in Kentucky, further highlighting activity in the gaming industry.