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Federal court revives lawsuit claiming AI software fueled price-gouging by Atlantic City casinos

Wednesday, July 29, 2026 8:09 PM
Photo: Racheal Grazias/Shutterstock
  • David Thomas, 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 prices and overcharge guests.

Here are the details.

Plaintiffs alleged hotel owners fed sensitive ​internal information such as real-time price and occupancy data ​to software maker Cendyn’s platform, known as Rainmaker. The ⁠platform used AI-assisted algorithms to deliver pricing recommendations.

The 3rd U.S. ​Circuit Court of Appeals in Philadelphia ruled the claims were sufficient to ​proceed with a lawsuit under federal antitrust law, diverging from an August 2025 decision by the San Francisco-based 9th U.S. Circuit Court of Appeals that tossed ​a similar lawsuit from casino customers in Nevada.