AI incident ·
Atlantic City Casino-Hotels Allegedly Used Cendyn's Rainmaker AI to Coordinate and Inflate Room Rates
In brief
An AI system built by The Rainmaker Group, Cendyn Group and 1 other and deployed by Tropicana Casino And Resort Atlantic City, Mgm Resorts International and 11 others allegedly harmed Hotel Customers, Customers and 2 others.
- Risk domain
- Not classified
- Occurred
- Coverage
- 2 reports
What happened
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.
Laws that address this harm
No recorded instrument yet addresses this use case where it happened. See the open queue.
Matched from the record's risk domain and country to the instruments recorded here. A reviewer can correct the match in the repository (data/external/incident_overrides.yaml).
News reports (2)
Titles link to the original publisher; report text is not reproduced here.
Who was involved
- Alleged harmed party
- Hotel Customers, Customers, Casino Hotel Customers, Atlantic City Casino Hotel Guests Allegedly Charged Anti Competitively High Room Rates
Classification (MIT AI Risk Repository taxonomy)
- Risk domain
- —
- Risk subdomain
- —
- Causal entity
- —
- Intent
- —
- Timing
- —
- Harm level
- —
- Sectors
- —
- Countries
- —
Source record: incident #1630 on the AI Incident Database · all 2 reports