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New Jersey casino hotels class action lawsuit overview:
- Who: Jacob Fabel filed a class action lawsuit against a number of casino hotels in Atlantic City, New Jersey.
- Why: Fabel claims the New Jersey casino hotels work together when setting the prices for their guest rooms so as to fix, raise, maintain and stabilize them.
- Where: The class action lawsuit was filed in New Jersey federal court.
Casino hotels in Atlantic City, New Jersey, conspire amongst themselves to fix, raise, maintain and stabilize the price of casino-hotel guest rooms in the resort city, a new class action lawsuit alleges.
Plaintiff Jacob Fabel claims casino hotels such as Atlantic City Hotel & Casino and Tropicana Atlantic City — among a slew of others — use an anticompetitive model to set their guest room prices.
Fabel argues New Jersey hotel casinos input their “commercially sensitive data on pricing and occupancy” into an algorithm that, based on the data, generates recommended “optimal prices” and discourages them from maximizing occupancy.
“As a result of this anticompetitive scheme, Plaintiff and class members paid artificially inflated prices for guest rooms rented directly from Casino-Hotel Defendants or their co-conspirators from June 27, 2018 to the present,” the New Jersey casino class action states.
Fabel wants to represent a nationwide class of consumers who have directly purchased a hotel guest room for rent in Atlantic City from one or more of the casino hotels named as defendants in the complaint, since June 28, 2018.
Casinos avoid ‘race to the bottom’ for room pricing by working together, class action alleges
Fabel argues that, by allegedly working together, the casino hotels in Atlantic City avoid a “race to the bottom” for who can set the lowest prices for their hotel rooms, when competition for them becomes fierce.
“Casino-Hotel Defendants acted in ways that would have been against their individual economic self-interests in the absence of coordination by forgoing the ‘Heads on the Bed’ competitive model,” the New Jersey hotel class action states.
Fabel claims the New Jersey hotel casinos are violating the Sherman Act. He is demanding a jury trial and requesting injunctive relief along with an award of damages for himself and all class members.
A similar class action lawsuit was filed against a number of hotel operators on the Las Vegas Strip in January over claims they have an anticompetitive agreement in place to artificially inflate the price of their guest rooms.
Have you purchased a casino-hotel room for rent in Atlantic City, New Jersey? Let us know in the comments.
The plaintiff is represented by Lisa J. Rodriguez and Ira Neil Richards of Schnader Harrison Segal & Lewis LLP, Garrett D. Blanchfield and Brant D. Penney of Reinhardt Wendorf & Blanchfield and Catherine Pratsinakis of Dilworth Paxson LLP.
The New Jersey casinos and hotel prices class action lawsuit is Fabel v. Boardwalk 1000, et al., Case No. 1:23-cv-06576, in the U.S. District Court for the District of New Jersey.
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6 thoughts onNew Jersey casino class action claims hotels force guests to pay inflated room rates
I have proof of payment for my stay each time and pictures. I’ve stayed multiple times please add me.
I have proof of payment and pictures. I’ve stayed multiple times please add me.
We stayed 5x times and paid triple the cost for a dirty moldy hotel room and it wasn’t worth it.. have pics to prove it.
I was charged resorts fees at harrahs casears ballys on comp rooms
Baileys Hotel Charged Me $300.00 In 2008 For The Night and If You Look On Line Or Their Website It’s Lower Price
Resort fees and miscellaneous taxes which are not included with your room rate double the price per your stay and Caesar’s Properties will charge you separately for using the pool and not included in the resort fee unlike other properties like MGM and Golden Nugget I have limited my visits to Atlantic City due to inflating prices and lack of services which includes housekeeping and customer service there needs to be more control over hotel pricing whether directly booking or third party as some or not clear about what resort fees are due upon check in