New FTC Rules: Casino Resorts Must Now Include All Resort Fees in Upfront Rates

Beginning May 12, 2025, a significant regulatory shift will change how travelers book their stays at premier casino resorts and other short-term accommodation providers. Under this new mandate, these establishments are required to include all mandatory charges—such as resort fees—within their upfront advertised rates, excluding only taxes. This rule is designed to bring much-needed transparency to the industry, protecting guests from the hidden fees that have frequently caused frustration when visiting luxury casino resorts.

Key Points of the New FTC Rule

Mandatory Fees Inclusion: Hotels must include all mandatory fees in the price that is prominently advertised.
Resort Fees Common: Many casino hotels charge resort fees, which can significantly increase the total cost of a stay.
Upfront Charges: The new rules do not compel hotels to abolish resort fees but instead require that these fees be included in the visible price before booking.

Hotel check-in — Image by megaplus from Pixabay

In December, the Federal Trade Commission (FTC) introduced its “Junk Fees Rule” targeting misleading pricing tactics that have plagued the hospitality industry. This regulation combats “bait-and-switch” pricing methods where customers are lured in by low initial rates, only to discover significant additional costs during the checkout process, such as resort fees, facility fees, and applicable destination fees.

This rule, formally known as the Trade Regulation Rule on Unfair or Deceptive Fees, covers not only hotel rooms but also live event tickets. It focuses on thwarting pricing tactics intended to conceal total costs by omitting mandatory fees from advertised prices. Effective immediately, all hotels must comply with this regulation.

According to the FTC, “The Rule bans bait-and-switch pricing and dishonest tactics that mislead customers about fees in the hotel and ticketing industries. These misleading practices harm consumers and undercut honest businesses.”

Casinos Adapting to the New Rules

Following the announcement of the FTC regulations, many major hotel chains, including MGM Resorts and Caesars Entertainment, have already begun updating their booking systems to reflect these changes. For instance:

For a stay on June 13 at Caesars Palace, the nightly rate advertised is $243 before taxes. Previously, the lower advertised rate was $188, but the resort fee of $55 will now be explicitly included in that price.

While taxes and governmental charges still have exemptions from inclusion in the total price, any charges for optional amenities and services must be reported as part of the booking total when requested by a consumer.

A business can exclude optional fees from the total price unless the consumer has requested these additional services, in which case all charges must be communicated up front before final payment is required, stated the FTC.

The FTC is dedicated to safeguarding the public from deceitful business practices and maintaining fair competition among businesses.

Consumer Response

Consumer groups have welcomed this regulation. Lauren Wolfe, who founded the Kill Resort Fees campaign and serves as legal counsel for Travelers United, stated that the FTC’s order empowers consumers to make more informed choices when booking hotels.

Violating the FTC regulations could lead to penalties exceeding $50,000 for non-compliant hotels.

Summary

In summary, the new FTC regulations require all casinos and hotel operators to include mandatory fees in their advertised rates to enhance transparency and consumer rights. By implementing these changes, the FTC aims to protect consumers better and promote fair pricing practices across the hospitality industry.