LAS VEGAS (KTNV) — A lawsuit filed this week accuses several Las Vegas Strip properties of artificially inflating hotel prices since January 2019.
The lawsuit — filed by Hagens Bergman — alleges that a revenue management platform known as Rainmaker has been using "real-time pricing and supply information" to help hotel operators maximize profits in violation of antitrust laws.
According to the lawsuit, "over 90%" of properties use the program. Caesars Entertainment, MGM, Treasure Island, Wynn, Rainmaker, and Cendyn are named defendants in the alleged scheme.
“Our antitrust attorneys have uncovered what appears to be an unlawful agreement in which Rainmaker collects and shares data between Vegas hotel competitors to unlawfully raise prices of hotel rooms,” said Steve Berman, managing partner of Hagens Berman and attorney seeking to represent consumers in the case. “What happens in Vegas will no longer stay in Vegas. We intend to expose the under-the-table deals perpetrated by these Vegas hotels, and we intend to hold them accountable.”
A spokesperson for MGM Resorts International called the claims against the company "factually inaccurate" and "meritless."
"The claims against MGM Resorts are factually inaccurate, and we intend to defend ourselves vigorously against these meritless claims," the company stated.
The lawsuit claims Rainmaker advertises "15% revenue growth" as well as testimonials for its parent company, Cendyn, describing "implausible performance" during the COVID-19 pandemic.
In the suit, lawyers quote a Rainmaker vice president of revenue analytics as stating, “the ultimate goal is not chasing after occupancy growth, but instead maximizing profits across all revenue streams.”
A spokesperson for Wynn Resort's declined to comment on the claims outlined in the lawsuit.
Representatives of the additional resorts accused in the lawsuit did not immediately respond to KTNV's request for comment on the allegations.
