Various operators in Las Vegas incentivize their customers by offering them a range of perks through their loyalty programs. Joining these programs can generally be done at no cost, and customers stand to reap a host of rewards such as complimentary meals, casino chips and even, in some instances, fully-paid hotel stays for a specified duration. However, the fairness and transparency of these loyalty programs have recently come under scrutiny, particularly following a lawsuit that challenges a Las Vegas operator on allegations of failing to reveal applicable taxes and fees associated with different comps within their loyalty program.
Details surrounding the new lawsuit leveled against Circa Hospitality Group and its related businesses began surfacing the previous week, according to a report by the Las Vegas Review-Journal. Accusations within the legal claim suggest that the operator and its affiliates did not properly disclose the fees and taxes applicable for comps offered as part of the operator’s loyalty program known as “Club One.”
The lawsuit, which aims for class action status, appeals to the court to force the hospitality and gaming operator to “put a stop to any such illicit activities.” Specifically, the suit asserts that the rewards earned for comps by members should not be subject to any fee deductions. Moreover, the current legal battle charges Circa with “practicing deceptive trade”, indicting the operator on accounts of dishonest representation, negligence, and conversion. Apart from these allegations of deceptive practices, the newly disclosed report points out additional charges lodged by the lawsuit against the operator for contract violations and breach of implied contracts.
Damages of Almost $4 Million Alleged in The Lawsuit
Legal representatives Artemus Ham, Robert Eglet, Robert Adams, and Michael Kind filed the lawsuit in the interest of five plaintiffs. Named defendants in the legal suit include Circa Hospitality Group, the Golden Gate, D, and Circa, along with several unidentified employees and subsidiaries. Lodged with the Clark County District Court, the lawsuit alleges damages amounting to approximately $3.75 million incurred over the past four years while the Circa’s loyalty program was in operation.
As per the lawsuit’s claim, the “defendants habitually reduced the amount of comps that they had pledged to plaintiffs by surreptitiously applying false fees and charges.”
In this recent lawsuit, one of the plaintiffs, Matthew Stokes, shared that he invested in a $23 meal at Saginaw’s Deli at Circa. He was however taken aback to discover that besides the meal cost, there was an additional deduction of $1.93 described as ‘add on tax’ from his earned comps balance, as indicated by the defendant’s point-of-sale system. The lawsuit includes a copy of the receipt as corroborative evidence to this claim.
Though a trial date is still to be fixed, according to the lawsuit, the case may likely involve more than 10,000 individuals who had registered for the loyalty program during their visit to Circa.
