Did Atlantic City Casinos Secretly Team Up to Raise Hotel Prices? Court Revives Lawsuit

The United States Court of Appeals for the Third Circuit has reinstated an antitrust lawsuit accusing Atlantic City’s casinos of conspiring to fix hotel room prices, overturning a federal district court’s dismissal of the case. A three-judge panel in the Philadelphia appellate court unanimously ruled that the proposed class of plaintiffs should have been given the opportunity to proceed with their claims.

The lawsuit, originally filed by a group of hotel guests, alleges that major casinos in the resort town coordinated to keep room rates artificially high, violating federal antitrust laws. After the district court dismissed the case for insufficient evidence of an agreement, the appellate court found that the plaintiffs had pleaded enough facts to survive a motion to dismiss.

Legal experts say the decision could open the door to broader scrutiny of pricing practices in the gaming and hospitality sectors. If the class is eventually certified, affected customers may be entitled to damages for overcharges they paid during the alleged conspiracy period.

The case now returns to the district court for further proceedings. Both sides are expected to engage in discovery, and the outcome could set a precedent for how antitrust claims are handled in the casino industry.