Posted on: September 24, 2023, 12:34h.
Last updated on: September 24, 2023, 12:34h.
President Joe Biden recently expressed his concerns about the prevalence of “junk fees” in the gaming industry, specifically relating to resort fees in Las Vegas casinos and regional gaming properties. These additional charges are often added at the end of the booking process, resulting in customers paying more than they initially expected.
The inclusion of these fees makes the overall cost of a stay or event significantly higher than the advertised price, leading to criticism from Biden and other lawmakers who argue that consumers are being deceived.
Despite the rise of inflation and increased costs for goods and services, Biden remains committed to taking action against deceptive online pricing strategies.
“Concert tickets are hard enough to get, you shouldn’t have to pay surprise service fees on top of that,” the president tweeted on X. “My Administration is working to crack down on those junk fees so you know what you are paying for up front.”
In October 2022, Biden initially announced his support for eliminating junk and resort fees from the hospitality and entertainment industries, stating his intention to instruct the Federal Trade Commission to address these unfair and deceptive charges across all sectors.
During his February State of the Union Address, Biden also emphasized the need to “ban surprise resort fees” and make transparent pricing a priority.
No Progress on Federal Bill
In July, bipartisan legislation known as the Hotel Fees Transparency Act (S.2498) was introduced to Congress by Senators Amy Klobuchar and Jerry Moran. The bill aims to require hotels and resorts to include resort fees and other charges in their advertised rates, ensuring greater transparency for consumers.
“Too often, Americans making reservations online are being met with hidden fees that make it difficult to compare prices and understand the true cost of an overnight stay,” the senators stated in a joint statement.
The bill was referred to the Senate Committee on Commerce, Science, and Transportation but has since stalled. This is despite the fact that both Klobuchar and Moran are members of the committee, as is Senator Jacky Rosen, a Democrat representing Nevada, home to Las Vegas and its key casinos.
The American Gaming Association, representing the gaming industry, opposes the inclusion of resort fees in advertised rates. Senator Rosen argues that while transparent pricing is important, casinos and resorts in her state are already upfront about their booking policies.
Other Nevada lawmakers, including Senator Catherine Cortez Masto and Representative Dina Titus, also support transparent pricing. However, they believe any legislation should primarily focus on ticket charges rather than targeting casinos and hotels.
“I’ll make sure this administration’s proposals stay focused on eliminating surprise fees — not punishing our world-class hotels and casinos for charges they already disclose up front,” said Cortez Masto.
Luxury Las Vegas casinos currently charge nightly resort fees as high as $45, excluding tax.
Addressing Priorities
Some critics of President Biden’s stance on resort fees question whether this is the most pressing issue for the country.
“People can’t afford groceries. How are they going to afford concert tickets?” one Twitter user pointed out.
Despite such criticisms, Biden remains determined to tackle the issue of junk fees and ensure greater transparency for consumers in the gaming and entertainment industries.