Gov. Kathy Hochul of New York has stressed yet again her detachment from the ongoing negotiations between her office and the Seneca Nation concerning a potential casino in the Rochester area. However, she emphasized that she is not directly participating in the negotiations, the timing decisions, or engaging in discussions with external individuals regarding this matter at the moment.

Local Leaders Surprised by Casino Deal Talks Involving Gov. Hochul’s Office

Speaking during the grand reopening ceremony at The Strong National Museum of Play in Rochester, Gov. Hochul clarified that she had recused herself from the negotiations and would be informed of the details alongside the public, reported 13WHAM ABC.

The negotiations have sparked controversy and raised eyebrows among local leaders and lawmakers, who were surprised to learn about the talks involving a casino deal. The governor’s office has been handling the compact talks on behalf of Gov. Hochul due to her recusal from matters related to Delaware North, the company where her husband is employed as the senior vice president and general counsel.

The previous announcement of a new tribal gaming agreement between the governor’s office and the Seneca Nation, which potentially included a Las Vegas-style resort casino in Rochester, sparked criticism for not involving relevant state lawmakers and local officials in the negotiations.

Governor Hochul Allegedly Stalling Compact Renewal for Corporate Benefit

Following the refusal of the New York Assembly to pass a statute authorizing Gov. Hochul to sign the Seneca contract, the Seneca Nation’s President, Rickey Armstrong Sr., accused the governor of deliberately stalling the compact renewal, which could benefit Delaware North.

Despite the setback, Gov. Hochul assured that discussions with the Seneca Nation are still ongoing. She emphasized her commitment to seeking a good outcome for all parties involved and working with an outstanding team on the matter.

As negotiations continue, lawmakers from Rochester have expressed their concerns regarding the potential impact of a casino project in the area. The Greater Rochester Majority Delegation has been engaging with all relevant parties, including the Governor’s office, local stakeholders, and the Mayor’s office, to ensure that any agreement between the Seneca Nation and New York State is transparent and well-informed.

In May, the Seneca Nation sought public support for a fair gaming compact as their current agreement with New York State is set to expire in December. They organized community support events throughout May, encouraging people to sign letters to state leaders, urging them to expedite the negotiation process and sign a new deal before the end of the State Legislature session on June 8. The Nation emphasizes its positive economic impact in the region, with three casino properties employing around 3,000 people and providing significant indirect support to the local economy.

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The Las Vegas Review-Journal reported that several hotel-casino operators on the Las Vegas Strip have filed a motion to dismiss a lawsuit that accuses them of price-fixing hotel room rates through a revenue management platform, Rainmaker. 

Tourists Sue Las Vegas Hotels for Alleged Antitrust Violations

In January, two tourists filed a lawsuit that accused hotel operators of violating the Sherman Antitrust Act and demanded that the defendants repay guests who overpaid. The lawsuit also alleged that Rainmaker unlawfully maximizes profits for its hotel operator users by designing rate recommendations through real-time pricing and supplying information from competitors on the platform. 

The hotels have dismissed these allegations, stating that there is no direct or circumstantial evidence that backs their allegations of conspiracy. The initial complaint did not identify who entered the conspiracy nor when it began. The hotels claimed that the complaint fails to articulate what the defendants agreed to and how the alleged conspiracy operates and instead speaks generally to algorithmic pricing. 

The plaintiffs’ law firm, Hagens Berman, released a statement that the motion to dismiss was expected, and they looked forward to continuing the case on behalf of the sizable class of those harmed by illegal pricing measures. Rainmaker, which is used by 90% of the hotels on the Strip, is accused in the lawsuit of violating the Sherman Antitrust Act.

The plaintiffs claim that Rainmaker’s proprietary software, Guestrev, analyzes real-time pricing and room supply information, then artificially suppresses supply, maximizing resort profits. According to the lawsuit, this artificially inflates hotel room prices, displacing normal competitive pricing and leading to increased room prices.

UNLV Professor Refutes Allegations of Las Vegas Price Fixing

In January, FOX5 reported that the plaintiffs claimed that if someone has rented a hotel room on the Strip on or after January 25, 2019, they may have overpaid due to this alleged illegal price-fixing scheme.

However, according to Amanda Belarmino, an assistant professor at the William F. Harrah College of Hospitality at UNLV, the current record high room revenue in Las Vegas is not because of price fixing. Belarmino stated that the biggest factor contributing to the high demand was the lifting of pandemic restrictions.

In the lawsuit, the plaintiffs accused MGM Resorts, Caesars Entertainment, Treasure Island, and Wynn Resorts of using the Rainmaker software to unlawfully increase hotel room prices by collecting real-time pricing and supply information from competitors. However, Belarmino disagrees and argues that the sharing of pricing and capacity information through Rainmaker is not collusion, but rather competitive research. She believes that unless proprietary information was shared, the plaintiffs will have a hard time winning their case.

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