Description: Atlantic City casino-hotels were alleged to have used Cendyn's Rainmaker AI-powered pricing platform to coordinate room rates using competitors' non-public pricing and occupancy data. Plaintiffs alleged that the hotels accepted Rainmaker's recommendations about 90% of the time, resulting in anti-competitively high room prices for guests.
Editor Notes: Please refer to: https://www2.ca3.uscourts.gov/opinarch/243006p.pdf. Alleged class period began no later than 06/28/2018 (see p. 21 of 43 for the source of this date); plaintiffs sued in 2023; the Third Circuit revived the claims on 07/29/2026. The incident ID was created 08/08/2026.
Entities
View all entitiesAlleged: The Rainmaker Group , Cendyn Group and AI-powered dynamic pricing software developers developed an AI system deployed by Tropicana Casino and Resort Atlantic City , MGM Resorts International , Hotels , Harrah's Resort Atlantic City , Hard Rock International , Hard Rock Hotel & Casino Atlantic City , Companies , Casinos , Casino-hotels , Caesars Entertainment , Caesars Atlantic City Hotel & Casino , Borgata Hotel Casino & Spa and Atlantic City casino-hotels using Rainmaker pricing software, which harmed Hotel customers , Customers , Casino-hotel customers and Atlantic City casino-hotel guests allegedly charged anti-competitively high room rates.
Alleged implicated AI systems: REVCaster , Rainmaker , GuestREV , GroupREV , Algorithmic pricing systems and AI-powered dynamic pricing systems
Incident Stats
Incident ID
1630
Report Count
2
Incident Date
2018-06-28
Editors
Daniel Atherton
Incident Reports
Reports Timeline
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July 29 (Reuters) - A federal appeals court on Wednesday revived a proposed antitrust class action that alleges major casino operators in Atlantic City, New Jersey, used an AI-powered revenue management platform to coordinate on room price…
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Hotel guests have another chance to prove allegations that several Atlantic City casinos conspired to fix prices using a common algorithm after the U.S. Court of Appeals for the Third Circuit broke with other lower courts to revive the case…
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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