The US Court of Appeals for the 9th Circuit affirmed a lower-court dismissal of allegations that the Las Vegas casino businesses colluded to fix hotel rates using shared pricing software on Friday, defeating Wynn Resorts, Caesars Entertainment, and Treasure Island in a consumer class action lawsuit.

The US District Court in Las Vegas ruled that the plaintiffs had not demonstrated that the resorts had consented to accept pricing recommendations produced by a shared revenue-management platform run by Cendyn. The three-judge panel in San Francisco unanimously confirmed the court's decision.

“Rather than eliminating competition, pricing one’s hotel rooms in a manner calculated to maximize profits is how one competes,” wrote Circuit Judge Carlos Bea, joined by Circuit Judge Ana de Alba and US District Court Judge Jeffrey Brown.

In the initial class-action lawsuit, which was filed in January 2023, MGM Resorts was named as a defendant.  It was not included in the appeal, though.  The court filings did not explain why it was excluded.

According to the plaintiffs, Cendyn's algorithm generated pricing recommendations that resulted in exorbitant lodging charges after the resorts supplied it sensitive data.

However, the court determined that the hotels were still allowed to determine their own rates.

The court rejected the plaintiffs' argument that even non-binding pricing guidance can stifle competition.

Any impropriety has been disputed by the gaming companies.

The employment of revenue-optimization tools in the hospitality sector is the subject of an increasing number of lawsuits.  Last October, a similar price-fixing case against casinos and hotels in Atlantic City was dropped.

Chief US District Judge Miranda Du dismissed the Las Vegas lawsuit in May, ruling that non-binding pricing recommendations do not amount to a trade restriction.